POLITICAL ASPECT

PLT OFF MUHAMMAD SHOAIB ALI

 Topic
 FLAG DISCRINMINATION
 FLAG OF CONVENCE
 SUBSIDIES
 CONTRIBUTION OF SHIPPING TO INVISIBLE
EXPORTS
 CONCLUSION
FLAG DISCRIMINATION
 FLAG DISCRIMINATION

 Flag distribution comprises the wide variety of acts and

pressures exertd by governments to direct cargo to ship
of their own flag, regardless of the commercial
consideration which normally govern the routening of
cargoes.
 Flag discrimination directing their port authorizes to offer
more favourable rates and bunker charges to the
national flag vessels.
 Basically , flag discrimination dislocates the competitive
nature of the shipping industry, because it often diverts
trade to the less efficient carrier and obscres the real
cost of the service.
 FLAG DISCRIMINATION
 Import Licences. A number of countries,
including Chile, Brazil, Gabon, Malaysia ,Peru,
Sudan, and India, have used the granted of
import licences to ensure carriage of cargo in
ships of their own national flag.

 Discrimination customs and other dues.

Preferential rates of customs and other dues are
used to influence cargoes into ships of the
national flag. Discriminatory custom in harbor,
lighthouse pilotage and tonnage dues, consular
fees and taxes on freight revenue are other
 Flag discrimination

Means of favouring the national flag.

 Amministrative pressure. Although in

many countries there may be no sttury
provision reserving cargoes to shio of
the national flag, the same result is
achieved by administrative pressure of
one from another.

 Direct legislative control. This is most

 Flag discrimination
 Direct legislative control. This is most damaging form
of flag discrimination. In the early 1990s countries
such as Argentina, Brazil, Chile, Ecuador, peru ,
Turkey, Uruguay, Venezuela and Egypt resorted to
direct legislative control in varying degrees.
 Exchangr Control. The manipulation of exchange
control offers endless commercially attractive that it
has the same effort.
 Bilateral trade treaties, which include hipping clauses
reserving either the whole of the trade btween the two
countries, or as much of it as possible, to the ships of
the two flages.
 Flag of convenience

Shipping companies, like any other undertaking , are

subject to the income aand profits taxes of the state where
they operate, and the level of tax is very important to the
ship owner. This probles is ofcourse , common to all
industry but for the shipping industry it is aggravated by the
enormous cost of replacement which countries to rise as
building cost incease.
Today there are large number of classification societies
and the criteria by which a shipownerchooses a socirty are
complex,through many countriesspecify which
classification society to use. Among the criteria it is
acknowledge that the prime responsibility for the safe and
pollution free operation of a ship lies with its owner and
operateor and the flag state.
 Flag of convenience

Strustural integrity. The classification society has the task

of ensuring that shio maintance and survey are under
taken.This technical work in accord with the regulation is
entrusted to the society by the state.
Safty equipment. Every society must have the competence
to undertake an annual audit of every ship on its registry to
ensure safety equipment is fully operationat and in with
international conditions.
Personel qualification. All shipboard personel must have
must have the appropriate experience / competence and
documentated qualification ealative to the ship manning
levels.
 Flag of convenience

a) Political aspects. Should have a comprehensive body

of laws and regulation to implement the requisite
international standards.
b) The flag state should have a recognized system of
casuality investigation in place and undertake such
investigation promptly and thoroughly.
c) Their should be a corporate law identifying the link
between the ship and flag state.
d) The flag state should required every ship on its register
has a decision maker available to the registry 24 hours
per day.
e) There should be provided a publicaly available register
of ship.
 Subsidies
Subsidies distort the competitive structure of shipping and
increase the cost of world shipping services, because they
permit the use of vessels less efficient and more expensive
than is warranted on an economic basis. However , it is
difficult to see how a country like the united state can
operate ships without subsidies, since the labour costs are
so much higher than those of other used, and where no
question of national security where posed, shippowning
would be undertaken only by those countris most fitted by
their cost structures and efficiency to operate ships. Details
of the type of subsidization are given below:
 Subsidies
a) Building subsidies may be a percentage of the total
cost or a fiwed sum of the ship construction cost. It
is usually given on certain condition , particularly
as a means of sustaining the shipyard industry in
the maritime country concerned rather than allow
the vessel to be built in a foreign yard at perhaps a
lower cost and quicker time scale this policy is
particularly relevant to state-owned fleets and
therefore seen as part of the nations economy and
as an aid to trade development.
in the case of non state owned fleets, building
subsidies are likewise available in similar terms or with
no constraints so that a subsidy may be afforded to a
vessel built in a foreign yard. It must be recognize that
not all maritime nations , perticularly third world
 Subsidies

Countries, have their own shipyards although the

situation will become less Common as their
industrialization develops. It must be borne in mind
that few more than one third be founds to provide
new tonnage and rarely can resources The rest
being provided from government and / or financial
institutions Shipyard ctive of whether the vessels
are of foreign registration or of the particular
both for new construction and repair work
irrespebsidize the shisubsidies tend to aries in a
period of depression in the international
Shipbuilding industry. Hence government may
Subsidies
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 A conical tube is made by winding of precut sheets of
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Styles

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Recycling
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 US standard drum sizes (57, 76, 114, 132, 208, 216) L
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 In 1963 the production of all-plastic 19 L pails and 61 L
drums started
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121 L open-top drum
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 Plastic Drums
Permeability
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UV Resistance
 Service life of HDPE containers cannot be accurately
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Thank You