Institute of Shipping Economics and Logistics

Fig. 1: World merchant fleet by national and foreign flag 1995-2004

ISL 2004

As of January 1^st, 2004, 13,840 merchant ships with 499.1 mill dwt equal to 64.0 per cent of the total tonnage were not registered in the country of domicile of the owner but flagged-out. For comparison, as of January 1^st, 2000, the foreign flag share stood at only 61.8 per cent.

The national flag registered ships of the total merchant fleet had an average age of 18.7 years compared to 14.6 for the foreign registered ships. Thus, foreign flag registered ships are not necessarily  substandard ships built in the 70s or 80s. For shipping nations like China, the United States of America, the Republic of Korea and Japan, but also for countries such as Russia, Saudi Arabia, Philippines, Canada and Indonesia their national flag registered ships were significantly older than their ships registered under foreign flags.

Fig. 2: National and foreign flag registered ships by division of age and ship type as of January 1^st, 2004

Ownership patterns of leading shipping nations

At the beginning of 2004, more than 93 per cent of the total deadweight tonnage of the world merchant fleet was attributable to no more than 30 countries (excl. tonnage for ships of which the parent company is unknown). This league of top ranking fleets includes to a large proportion OECD countries, comprising the majority of EU-countries, but also countries like China, Hong Kong (SAR) ^{[2] )}, Taiwan and Singapore.

Fig. 3: Controlled fleet development of major shipping nations as of January 1^st, 2000-2004 (dwt – yearly average growth rate )

ISL 2004

OECD countries control, in terms of deadweight tonnage, 69.2 per cent of the total world merchant fleet. Compared to last year's figures the total OECD controlled tonnage increased by 4.0 per cent. As of January 1^st, 2004, the foreign flag share of OECD countries in tonnage terms reached 70.5 per cent which means that at least 380.6 mill dwt were registered under foreign flags. For comparison, in 2000 the foreign flag share stood at 68.0 per cent. In the period 2000-2004 the foreign flag tonnage for OECD countries increased in absolute terms by 46.2 mill dwt, whereas the national flag tonnage increased by 1.6 mill dwt only.

As of January 1st, 2004, the top ten leading shipping countries represent in terms of tonnage 71.6 per cent of the total world merchant fleet ^{[3] )}. For the first time Germany is placed under the top five shipping nations. Other top ranking positions are unchanged.

Tonnage figures at the beginning of 2004 compared to previous year's results indicate that all top ten flags, with the exception of Hong Kong and Norway, increased their controlled fleet tonnage potential. The largest tonnage increases are attributable to Singapore (20.4 per cent) and Germany (18.7 per cent). Compared to 2000, Germany increased the controlling tonnage by 65.3 per cent (19.1 mill dwt) - the highest growth rate within the top 10 shipping nations.

Remarkable is also the growth of the Greek fleet. Within the period 2000 – 2004, the Greek the total controlled tonnage increased by about 25 mill dwt (+°18.7 per cent).

The foreign flag shares of the top ranking shipping nations differ markedly. At the beginning of 2004, countries like Japan and Germany, registered 88.4 per cent and 85.8 per cent respectively of their controlled fleet tonnage under foreign flags (2000: 81.1 per cent and 74.3 per cent).

Of the 3,089 ships, owned by Greek owners, only 746 ships were registered under national flag. These ships mainly include tankers and bulk carriers.

Fig. 4: World merchant fleet tonnage by national and open registries as of January 1^st, 1988-2004 (in mill dwt)

ISL 2004

Fig. 5: Tonnage development of major open registry flags as of January 1^st, 2000–2004 (in mill dwt, ships of 300 gt and over)

ISL 2004

Leading flags are Panama and Liberia with a total tonnage of 249.5 mill dwt representing approx. 60 per cent of the open registry tonnage. Throughout the last years both flags developed differently. The Panamanian fleet increased by 27.6 mill dwt equal to 19.0 per cent compared to figures in 2000. At the beginning of 2004, 4,222 ships with 172.9 mill dwt were attributable to Panama, the world’s top ranking open registry flag. In the period 2000-2004, the Panamanian registered tonnage grew on average by 4.4 per cent yearly. In the same period the Liberian tonnage potential went down by 0.5 per cent per year. At the beginning of 2004, the Liberian fleet stood at 76.6 mill dwt compared to 69,1 mill dwt one year before and 78.0 mill dwt in 2000.

Flagged-out general cargo ships, container ships, tankers and bulk carriers were mainly attributable to Panama. Liberia has a strong position as far as tanker tonnage is concerned. The Bahamas are in the lead as open registry for passenger ships, whereas Cyprus has a relatively strong position with regard to bulk carriers.

At the beginning of 2004, OECD countries' foreign flag tonnage was to 35.3 per cent registered in Panama followed by Liberia with only 12.9 per cent. The comparison with results of 2000 reflects the tonnage regrouping between traditional open registry flags as well as the growing importance of emerging new registers. At the beginning of 2000, OECD ship owners registered 14.8 per cent of their tonnage under Liberian flag and nearly 31 per cent were registered in Panama. The comparison of 2000 and 2004 highlights that some of the traditional maritime nations changed their registration attitudes as far as open registries are concerned. Due to this development Panama gained further momentum as open register, whereas Liberia was negatively affected.

Fig. 6: Open registry flags by ship type as of January 1^st, 2004 (dwt %-shares)

ISL 2004

German ship owners took increasingly advantage of the Liberian flag (39.8 per cent). US foreign flag registered tonnage concentrates largely on the Marshall Islands (32.6 per cent) and Bahamas (29.3 per cent). Whereas 85.5 per cent of the Japanese and owned tonnage were registered under Panamanian flag.

Malta and Cyprus are especially relevant for Greek ship owners whereas the registry “Antigua & Barbuda” is primarily used by German shipping companies.