Where Are Cruise Ships Flagged?

Nearly all cruise ships are incorporated or flagged outside of the U.S. for several reasons, including U.S. law requiring ships to use foreign flags of convenience. This has become a significant issue in 2021. Most cruise ships fly Bahamian flags, but other popular registries include Panama, Bermuda, Italy, Malta, and the Netherlands. According to the Cruise Lines International Association, 90% of commercial vessels calling on U.S. ports fly foreign flags.

The Bahamas is the world’s third-largest ship registry after Panama and Liberia. Major cruise lines flagged in the Bahamas include Carnival, Disney, Royal Caribbean, and Norwegian Cruise Lines. The International Transport Workers states that most cruise ships are registered in places like the Bahamas, Panama, or Liberia, or flag of convenience countries. If they were registered in these countries, they would be registered in the United States.

The Passenger Vessel Services Act of 1886 requires that ships be registered in places like the Bahamas, Panama, or Liberia. Princess ships are mainly registered in Bermuda, but a small number are U.K.-flagged. The line has its headquarters in Santa Clarita, near the United States.

In summary, nearly all cruise ships are incorporated or flagged outside of the U.S. for various reasons, including the requirement to use foreign flags of convenience. Cruise ship flags matter as they can significantly impact the overall appearance and safety of a cruise ship.

Why are ships Panama flagged?

Ever since the United States encouraged Panama’s independence from Colombia and orchestrated the 1903 treaty that gave it the right to build and operate the Panama Canal, Panama has frequently been a convenient haven for U.S. businessmen. In 1922, the transfer of two passenger liners, the Reliance and the Resolute, from the U.S. to the Panamanian registry represented the first major step in the development of the flag of convenience system. Panama offered ship registration in a country free of burdensome laws and regulations found elsewhere. In this case, the passenger liner company wished to avoid the U.S. prohibition laws against serving alcohol on board.

The Panamanian registry, run from offices in New York, has grown steadily since then and now includes more than 6,000 ships. Ship registration generates approximately $255 million annually in revenue for the Panamanian government. Owners from Japan, Greece, China and South Korea claim 70 percent of Panama’s fleet.

In 2001, Panama’s registry made the mistake of selling a first officer’s certificate to the general secretary of the International Transport Workers’ Federation (ITF), David Cockroft, in spite of his having absolutely no seafaring experience. The ITF, an international federation of transport trade unions, is well-known for strongly opposing the flag of convenience system. “The laugh is on Panama,” said Cockroft, “whose controls are so lax that they hand out a vital document to the head of an organization that for 53 years has challenged the abuses permitted by flags of convenience states such as theirs. It’s like awarding a good conduct medal to Attila the Hun.”

Why are so many ships in Panama flagged?

Ever since the United States encouraged Panama’s independence from Colombia and orchestrated the 1903 treaty that gave it the right to build and operate the Panama Canal, Panama has frequently been a convenient haven for U.S. businessmen. In 1922, the transfer of two passenger liners, the Reliance and the Resolute, from the U.S. to the Panamanian registry represented the first major step in the development of the flag of convenience system. Panama offered ship registration in a country free of burdensome laws and regulations found elsewhere. In this case, the passenger liner company wished to avoid the U.S. prohibition laws against serving alcohol on board.

The Panamanian registry, run from offices in New York, has grown steadily since then and now includes more than 6,000 ships. Ship registration generates approximately $255 million annually in revenue for the Panamanian government. Owners from Japan, Greece, China and South Korea claim 70 percent of Panama’s fleet.

In 2001, Panama’s registry made the mistake of selling a first officer’s certificate to the general secretary of the International Transport Workers’ Federation (ITF), David Cockroft, in spite of his having absolutely no seafaring experience. The ITF, an international federation of transport trade unions, is well-known for strongly opposing the flag of convenience system. “The laugh is on Panama,” said Cockroft, “whose controls are so lax that they hand out a vital document to the head of an organization that for 53 years has challenged the abuses permitted by flags of convenience states such as theirs. It’s like awarding a good conduct medal to Attila the Hun.”

What flags do cruise ships fly under?

Cruise ships fly flags of the countries they are registered in. This means they, like all other marine vessels, are subject to the rules, regulations and safety norms of that particular country.

The use of flags of convenience dates back to the 1920s when the US imposed prohibition, a nationwide ban on the production, import, sale and transport of alcohol. To circumvent this, many cruise ship owners began to register their vessels in nearby countries that had relatively more lenient laws.

The trend expanded to include a circumvention of other regulations from countries like the US and Norway to help the cruise ship companies be more profitable. Owing to this, the flags they flew began to be known as flags of convenience.

Why are cruise ships registered in Bermuda?

About the Flag. Bermuda is a UK Overseas Territory which has its own Parliament and which makes its own national laws. The UK extends international maritime and other conventions to Bermuda where they are enacted into Bermuda law for Bermuda ships. The territory has a sound legal framework for company law and shipping law, based on UK practice and is a reputable jurisdiction for carrying out ship registry and finance transactions. Bermuda offers the option to set up exempt companies to carry on international trade and is a base of choice for a great many well known large shipping interests.

The Bermuda Ship Registry is based in Hamilton in Bermuda but also has a team of experienced surveyors based in the UK, Croatia and Spain who are available to attend ships easily and quickly for surveys and audits when required. The registry is a UK category 1 register which means it is authorised to register ships of all types and sizes.

Currently the makeup of the register shows high percentages of passenger cruise ships, LNG tankers, bulk carriers and tankers, with a number of very large commercial yachts. The new Passenger Yacht Code is available for owners wishing to register such craft in Bermuda. Facilities exist to legally empower ship’s captains to perform legal marriages on board ships.

Where are Royal Caribbean ships flagged?

Where is Royal Caribbean based, and where are Royal Caribbean cruise ships registered?. Royal Caribbean International, overseen by Royal Caribbean Cruises Ltd., is headquartered in Miami, and its ships are registered in the Bahamas.

Where is Seabourn Cruises based, and where are Seabourn cruise ships registered?. Falling under Carnival Corp. & plc’s list of cruise brands, Seabourn sails a fleet of Bahamas-registered ships and has its headquarters in Seattle.

Where is Silversea Cruises based, and where are Silversea cruise ships registered?. Silversea, in which Royal Caribbean Cruises Ltd. owns a majority share, flags most of its ships in the Bahamas, while its Galapagos vessels are flagged to Ecuador. The line’s head office is in Monaco, but it operates a U.S. branch in Miami.

Where are most ships flagged?

Panama has the largest maritime register, followed by Liberia. Landlocked Mongolia also has a major registry, as does Bolivia. Also, some registers are based in other countries. For example, Panamanian overseas consulates manage the documentation and collect registration fees, Liberia’s registry is managed by a company in Virginia and Bahamas’ from the City of London.

A ship’s beneficial owner is legally and financially responsible for the ship and its activities. For any of a number of reasons, some justifiable and some suspicious, shipowners who wish to conceal their ownership may use a number of strategies to achieve that goal.

In jurisdictions that permit it, actual owners may establish shell corporations to be the legal owners of their ships, making it difficult, if not impossible, to track who is the beneficial owner of the ship. The 2004 Report of the UN Secretary General’s Consultative Group on Flag State Implementation reported that “It is very easy, and comparatively inexpensive, to establish a complex web of corporate entities to provide very effective cover to the identities of beneficial owners who do not want to be known.”

Is Royal Caribbean US flagged?

Due to federal regulations, it’s nearly impossible to register a cruise ship in the US, so they are all foreign flagged (except for one) for ocean cruises. Due to tax regulations, the Bahamas, Panama, and a few other countries are commonly used to register vessels. NASA was already taken.

What is the only US-flagged cruise ship?

Cruising Hawaii Year-Round. As the only U.S. flagged cruise ship, Pride of America sails year round from Honolulu, giving you the freedom and flexibility to holiday on your schedule. Visit four Hawaiian Islands and five ports in seven days while you cruise through paradise in style.

Extraordinary Dining Options. Pride of America offers a genuine Hawaiian culinary experience by serving local Hawaiian cuisine such as Pineapple Beurre Blanc with fresh seafood, papaya with Asian short ribs and a variety of tropical juices.

As the only U.S. flagged cruise ship Pride of America sails year round from Honolulu. This vibrant Americana-themed ship features the Kuku Cultural Center with showcases of historical pieces that illuminate and outline the heritage and history of this exotic destination.

Why are there no US-flagged cruise ships?

Most shipyards don’t build cruise ships, although they probably could if they so chose. They build military ships or smaller ships like yachts. Since there are no shipyards building cruise ships, there can be no U.S.-flagged cruise ships.

So, to be able to still give passengers a cruise to remember, and comply with these laws, foreign-flagged cruise lines have been leaving from a U.S. port, traveling to a foreign country like Canada or Mexico for a short visit, and then returning to the original port. This isn’t always the best case scenario for those interested in a cruise, however. Some want to go on a short cruise, and these cruises that include foreign ports are often longer than most passengers would like.

From 1908 through the 1950s there was a U.S.-flagged ship that carried passengers from San Francisco to Honolulu. That was before expenses to build and run U.S.-flagged ships rose to the point it wasn’t practical anymore. It was also before the popularity, and economy, of airline travel. This service died a painful death in the mid 1970s and has not been revived.