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Do Port State Control Inspections Influence Flag- and Class-hopping Phenomena in Shipping?

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  • Pierre Cariou
  • François-Charles Wolff

Abstract

The flag of registry and classification society are an integral part of the target factors used by Port State Control (PSC) authorities when deciding on vessels to select for inspection. A shipowner may then have an interest in changing the flag of registry (flag-hopping) and classification society (class-hopping) to avoid future controls. Using data on PSCs collected over six years from 7,500 vessels, we study the relevance of this assumption using bivariate Probit models. Our estimates show that vessels in relatively bad condition are more likely to be subject to flag- and class-hopping and that these phenomena are more likely among vessels which have changed flag and class in the past. © 2011 LSE and the University of Bath

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Bibliographic Info

Article provided by London School of Economics and University of Bath in its journal Journal of Transport Economics and Policy (JTEP).

Volume (Year): 45 (2011)
Issue (Month): 2 (May)
Pages: 155-177

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Handle: RePEc:tpe:jtecpo:v:45:y:2011:i:2:p:155-177

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Web page: http://www.bath.ac.uk/e-journals/jtep

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  1. Jeffrey M Wooldridge, 2002. "Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity," CeMMAP working papers CWP18/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  2. Roberts, Stephen E. & Marlow, Peter B., 2002. "Casualties in dry bulk shipping (1963-1996)," Marine Policy, Elsevier, vol. 26(6), pages 437-450, November.
  3. Wayne K Talley, 1999. "Determinants of Ship Accident Seaworthiness," Maritime Economics and Logistics, Palgrave Macmillan, vol. 1(2), pages 1-14, December.
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