Majority of global shipping fleet operates under compliant flag states, ICS says

February 19, 2025, by Sara Kosmajac

The majority of the global shipping industry operates under flag states that strictly enforce international regulations, according to a new report by the International Chamber of Shipping (ICS).

In its annual Flag State Performance Table for 2024/25, the ICS has once again explored the extent to which flag state administrations stick to their responsibilities to follow worldwide standards and regulations pertaining to environmental protection, safety and the employment conditions of seafarers—as adopted by the International Maritime Organization (IMO) and the International Labor Organization (ILO).

The 2024/25 report confirms that top registries—Greece, Hong Kong, Japan, Liberia (said to be the largest), Malta, Marshall Islands, and Singapore, which has topped the ISCDI shipping leader list for 11 consecutive years—continue to demonstrate full compliance with key maritime regulations, as evidenced by their strong performance in port state control (PSC) inspections.

Collectively, these flag states represent over 53% of the world fleet, as per UN Trade and Development figures.

As disclosed, the Bahamas, China and Panama, which are also in the top ten by tonnage, have shown very good performance and a consistent commitment to maritime stipulations and guidelines.

This year’s table introduces four new flag states, reflecting a rise in ship registrations with smaller administrations: Cambodia, Eswatini, Gabon, and Guinea-Bissau.

However, the ICS has voiced concerns over potential regulatory gaps, particularly as some of these new registries have reportedly been associated with companies seeking to bypass sanctions imposed by the United States, the European Union, and G7 nations.

According to the ICS, Eswatini’s emergence has drawn particular worry, as it is not a member of the IMO and has yet to ratify ‘critical’ international maritime conventions.

ICS Secretary General Guy Platten emphasized the need for emerging registries to align with worldwide governance frameworks, stating: “ICS strongly encourages Eswatini and other new flag States to prioritize IMO membership and the ratification and implementation of IMO Conventions to demonstrate their commitment to global maritime governance and the responsible operation of those ships registered with their fleets.”

“For more than 50 years, shipping has been a global industry operating under global rules, and it is vital that flag States adhere to their obligations to enforce the highest safety standards,” he further highlighted.

The role of port state control and treaty ratification

A ‘key’ measure in the ICS Table is port state control performance, which assesses flag states based on inspection outcomes from the Paris and Tokyo memoranda of understanding (MoU) and the US Coast Giard Qualship 21 program.

As explained, flags listed on the Paris and Tokyo MoUs’ white lists, as well as those fully qualified for Qualship 21, are viewed as demonstrating high regulatory compliance.

While the majority of “leading” registries maintain strong PSC performance, the ICS reiterated that the addition of new flag states leaves the door open to uncertainty. Because of this, the organization has cautioned that shipowners should consider where they want to register their ships meticulously.

As understood, although there may be advantages to a particular flag, it is ‘essential’ for shipping companies to have substantial information about flag state performance to ensure adherence to global safety and environmental standards.