The strong position of so called Flag Of Convenience (FOC) states obstructs global regulation on shipbreaking within the IMO. What are Flags of Convenience? States where ships can be registered cheaply. And where the rules regarding crew, safety and environment are not very strict. Most of the single hull oil tankers that broke down during the past years sailed under a FOC.

Letterbox
Shipowners have the right to sail their ships under any flag they chose. So many ships are registered under a FOC. A FOC also offers the opportunity to hide the identity of shipowners. A letterbox company is sufficient to sail under the flag of a FOC. That makes it very difficult to trace the company responsible for an End of Life Vessel destined for shipbreaking.

FOC veto
Well known FOC states are Panama, Liberia, Bahamas, Malta and Cyprus. Together they 'control' about 45% of the shipping tonnage. Within the IMO a treaty only comes into force if the ratifying states together represent the required shipping tonnage (this differs per treaty). That means that in fact FOC states have the power of veto in the IMO. In total there are more than 30 FOC states.

Status quo
Shipowners sailing under a FOC enjoy and keep this status quo. Most FOC-ships are owned by Greek, Japanese, American, Chinese (Hong Kong), Norwegian and German shipping companies. Since Malta and Cyprus joined the EU almost half of the world fleet is owned by Norwegian and EU shipping companies. These ship owners sail many ships under a FOC. The FOC states carefully protect the interests of these ship owners. They use their influence to block more stringent regulations for sea-going ships.

Fundamental changes
Conclusion: the dominance of FOC states in the IMO makes it extremely difficult to agree on enforceable shipbreaking regulations in the short run. That's why Greenpeace, the International Transport Federation (ITF) and WWF believe the way global shipping is operated and regulated should change fundamentally. The coalition called for concerted action to eliminate the FOC system in a letter sent to UN Secretary General Kofi Annan.

Maltese breakthrough
Malta is the worlds second largest exporter of toxic end-of-life ships. In 2004 this FOC state became a new member of the European Union. Malta now stands under pressure to bring its position in line with the position of the EU. The EU member states are of the opinion that flag states bear responsibility for the way ships are broken. In September 2004 an international Greenpeace delegation visited Malta to force an important breakthrough. The visit was very successful: after publications in the Maltese press the Maltese government acknowledged the responsibility of Malta for the breaking of thousands of Maltese flagged ships. The island promised to follow Europe's position on the issue. Now Malta has to fulfill that promise and take steps to prevent the poison of Maltese ships ending up at the Asian beaches.

More information on FOC: International Transport Workers Federation.