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


  • Pierre Cariou
  • François-Charles Wolff


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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  • Pierre Cariou & François-Charles Wolff, 2011. "Do Port State Control Inspections Influence Flag- and Class-hopping Phenomena in Shipping?," Journal of Transport Economics and Policy, University of Bath, vol. 45(2), pages 155-177, May.
  • Handle: RePEc:tpe:jtecpo:v:45:y:2011:i:2:p:155-177

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    References listed on IDEAS

    1. Jeffrey M. Wooldridge, 2005. "Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(1), pages 39-54.
    2. Wayne K Talley, 1999. "Determinants of Ship Accident Seaworthiness," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 1(2), pages 1-14, December.
    3. Roberts, Stephen E. & Marlow, Peter B., 2002. "Casualties in dry bulk shipping (1963-1996)," Marine Policy, Elsevier, vol. 26(6), pages 437-450, November.
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    Cited by:

    1. Mitroussi, Kyriaki & Arghyrou, Michael G., 2016. "Institutional performance and ship registration," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 85(C), pages 90-106.
    2. Fan, Lixian & Luo, Meifeng & Yin, Jinbo, 2014. "Flag choice and Port State Control inspections—Empirical evidence using a simultaneous model," Transport Policy, Elsevier, vol. 35(C), pages 350-357.
    3. Cariou, Pierre & Wolff, Francois-Charles, 2015. "Identifying substandard vessels through Port State Control inspections: A new methodology for Concentrated Inspection Campaigns," Marine Policy, Elsevier, vol. 60(C), pages 27-39.
    4. Armando Graziano & Pierre Cariou & François-Charles Wolff & Maximo Mejia & Jens-Uwe Schröder-Hinrichs, 2017. "Port state control inspections in the European Union: Do inspector's number and background matter?," Working Papers halshs-01649418, HAL.

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