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Montreux Convention (1936) ..
Flag of convenience (FOC) is a business practice whereby a ship's owners register a merchant ship in a ship register of a country other than that of the ship's owners, and the ship flies the civil ensign of that country, called the flag state. The term is often used pejoratively, and although common, the practice is sometimes regarded as contentious. Each merchant ship is required by international law to be registered in a registry created by a country, and a ship is subject to the laws of that country, which are used also if the ship is involved in a case under admiralty law. A ship's owners may elect to register a ship in a foreign country which enables it to avoid the regulations of the owners' country which may, for example, have stricter safety standards. They may also select a jurisdiction to reduce operating costs, avoiding higher taxes in the owners' country and bypassing laws that protect the wages and working conditions of mariners. The term "flag of convenience" has been used since the 1950s. A registry which does not have a nationality or residency requirement for ship registration is often described as an open registry. Panama, for example, offers the advantages of easier registration (often online) and the ability to employ cheaper foreign labour. Furthermore, the foreign owners pay no income taxes.
The modern practice of ships being registered in a foreign country began in the 1920s in the United States when shipowners seeking to serve alcohol to passengers during Prohibition registered their ships in Panama. Owners soon began to perceive advantages in terms of avoiding increased regulations and rising labor costs and continued to register their ships in Panama even after Prohibition ended. The use of open registries steadily increased, and in 1968, Liberia grew to surpass the United Kingdom with the world's largest ship register. As of 2009, more than half of the world's merchant ships were registered with open registries, and almost 40% of the entire world fleet, in terms of deadweight tonnage, were registered in Panama, Liberia, and the Marshall Islands. In 2006, up to 20% of high-seas fishing vessels were registered in states they were not connected to. According to IHS Markit, in March 2017, Panama had 8,052 ships on its registry, Singapore had 3,574 ships, Liberia had 3,277 ships, the Marshall Islands had 3,244 ships and Hong Kong had 2,594 ships.
Open registries have been criticised, mainly by trade union organisations based in developed countries, especially those in the European Union, United States, Japan, Canada, or the United Kingdom. One criticism is that shipowners who want to hide their ownership may select a flag-of-convenience jurisdiction which enables them to be legally anonymous. Some ships with flags of convenience have been found engaging in crime, offering substandard working conditions, and negatively impacting the environment, primarily through illegal, unreported and unregulated fishing. Prior to the implentation of the International Convention on Tonnage Measurement of Ships, 1969, shipowners may have selected a jurisdiction with measurement rules that reduced the certified gross register tonnage of a ship, to reduce subsequent port of call dock dues. Such was a consideration when Carnival Cruise Line changed the flag of the RMS Empress of Canada in 1972 to that of Panama.[citation needed] In 2011, Cunard Line registered all its ships in Bermuda, which, besides other considerations, enabled its ship captains to marry couples at sea. Weddings at sea are described as a lucrative market.
As of 2009, thirteen flag states have been found by international shipping organisations to have substandard regulations. On the other hand, maritime industry practitioners and seafarers from other countries contend that this is a natural product of globalisation. Supporters of the practice, however, point to economic and regulatory advantages, and increased freedom in choosing employees from an international labour pool. Ship owners from developed countries use the practice to be competitive in a global environment. As of 2009, ships of thirteen flags of convenience have been targeted for special enforcement by countries when they visit ports in those countries, called port state control.
The United Nations Convention on the Law of the Sea (UNCLOS), also called the Law of the Sea Convention or the Law of the Sea treaty, is an international agreement that resulted from the third United Nations Conference on the Law of the Sea (UNCLOS III), which took place between 1973 and 1982. The Law of the Sea Convention defines the rights and responsibilities of nations with respect to their use of the world's oceans, establishing guidelines for businesses, the environment, and the management of marine natural resources. The Convention, concluded in 1982, replaced the quad-treaty 1958 Convention on the High Seas. UNCLOS came into force in 1994, a year after Guyana became the 60th nation to ratify the treaty. As of June 2016, 167 countries and the European Union have joined in the Convention. It is uncertain as to what extent the Convention codifies customary international law.
While the Secretary-General of the United Nations receives instruments of ratification and accession and the UN provides support for meetings of states party to the Convention, the United Nations Secretariat has no direct operational role in the implementation of the Convention. A UN specialized agency, the International Maritime Organization, does play a role, however, as well as other bodies such as the International Whaling Commission and the International Seabed Authority (ISA), which was established by the Convention itself.
The Montreux Convention regulates maritime traffic through the Turkish Straits. It guarantees "complete freedom" of passage for all civilian vessels in times of peace. In peacetime, military vessels are limited in number, tonnage and weaponry, with specific provisions governing their mode of entry and duration of stay. If they want to pass through the Strait, warships must provide advance notification to the Turkish authorities, which, in turn, must inform the parties to the convention. In wartime, if Turkey is not involved in the conflict, warships of the nations at war may not pass through the Straits, except when returning to their base. When Turkey is at war, or feels threatened by a war, it may take any decision about the passage of warships as it sees fit. The USA is not a signatory to the Convention.
While it was designed for a particular geopolitical context, and remains unchanged since its adoption, the Montreux Convention has endured as a "solid example of a rules-based international order", since most of its terms are still followed.
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The modern practice of ships being registered in a foreign country began in the 1920s in the United States when shipowners seeking to serve alcohol to passengers during Prohibition registered their ships in Panama. Owners soon began to perceive advantages in terms of avoiding increased regulations and rising labor costs and continued to register their ships in Panama even after Prohibition ended. The use of open registries steadily increased, and in 1968, Liberia grew to surpass the United Kingdom with the world's largest ship register. As of 2009, more than half of the world's merchant ships were registered with open registries, and almost 40% of the entire world fleet, in terms of deadweight tonnage, were registered in Panama, Liberia, and the Marshall Islands. In 2006, up to 20% of high-seas fishing vessels were registered in states they were not connected to. According to IHS Markit, in March 2017, Panama had 8,052 ships on its registry, Singapore had 3,574 ships, Liberia had 3,277 ships, the Marshall Islands had 3,244 ships and Hong Kong had 2,594 ships.
Open registries have been criticised, mainly by trade union organisations based in developed countries, especially those in the European Union, United States, Japan, Canada, or the United Kingdom. One criticism is that shipowners who want to hide their ownership may select a flag-of-convenience jurisdiction which enables them to be legally anonymous. Some ships with flags of convenience have been found engaging in crime, offering substandard working conditions, and negatively impacting the environment, primarily through illegal, unreported and unregulated fishing. Prior to the implentation of the International Convention on Tonnage Measurement of Ships, 1969, shipowners may have selected a jurisdiction with measurement rules that reduced the certified gross register tonnage of a ship, to reduce subsequent port of call dock dues. Such was a consideration when Carnival Cruise Line changed the flag of the RMS Empress of Canada in 1972 to that of Panama.[citation needed] In 2011, Cunard Line registered all its ships in Bermuda, which, besides other considerations, enabled its ship captains to marry couples at sea. Weddings at sea are described as a lucrative market.
As of 2009, thirteen flag states have been found by international shipping organisations to have substandard regulations. On the other hand, maritime industry practitioners and seafarers from other countries contend that this is a natural product of globalisation. Supporters of the practice, however, point to economic and regulatory advantages, and increased freedom in choosing employees from an international labour pool. Ship owners from developed countries use the practice to be competitive in a global environment. As of 2009, ships of thirteen flags of convenience have been targeted for special enforcement by countries when they visit ports in those countries, called port state control.
The United Nations Convention on the Law of the Sea (UNCLOS), also called the Law of the Sea Convention or the Law of the Sea treaty, is an international agreement that resulted from the third United Nations Conference on the Law of the Sea (UNCLOS III), which took place between 1973 and 1982. The Law of the Sea Convention defines the rights and responsibilities of nations with respect to their use of the world's oceans, establishing guidelines for businesses, the environment, and the management of marine natural resources. The Convention, concluded in 1982, replaced the quad-treaty 1958 Convention on the High Seas. UNCLOS came into force in 1994, a year after Guyana became the 60th nation to ratify the treaty. As of June 2016, 167 countries and the European Union have joined in the Convention. It is uncertain as to what extent the Convention codifies customary international law.
UNCLOS replaces the older 'freedom of the seas' concept, dating from the 17th century. According to this concept, national rights were limited to a specified belt of water extending from a nation's coastlines, usually 3 nautical miles (5.6 km; 3.5 mi) (three-mile limit), according to the 'cannon shot' rule developed by the Dutch jurist Cornelius van Bynkershoek. All waters beyond national boundaries were considered international waters: free to all nations, but belonging to none of them (the mare liberum principle promulgated by Hugo Grotius).
In the early 20th century, some nations expressed their desire to extend national claims: to include mineral resources, to protect fish stocks, and to provide the means to enforce pollution controls. (The League of Nations called a 1930 conference at The Hague, but no agreements resulted.) Using the customary international law principle of a nation's right to protect its natural resources, President Harry S. Truman in 1945 extended United States control to all the natural resources of its continental shelf. Other nations were quick to follow suit. Between 1946 and 1950, Chile, Peru, and Ecuador extended their rights to a distance of 200 nautical miles (370 km; 230 mi) to cover their Humboldt Current fishing grounds. Other nations extended their territorial seas to 12 nautical miles (22 km; 14 mi).[7]
By 1967, only 25 nations still used the old three nautical mile limit, while 66 nations had set a 12-nautical-mile (22 km) territorial limit and eight had set a 200-nautical-mile (370 km) limit. As of 28 May 2008, only two countries (Jordan and Palau) still use the 3-mile (4.8 km) limit. That limit is also used in certain Australian islands, an area of Belize, some Japanese straits, certain areas of Papua New Guinea, and a few British Overseas Territories, such as Gibraltar.
In the early 20th century, some nations expressed their desire to extend national claims: to include mineral resources, to protect fish stocks, and to provide the means to enforce pollution controls. (The League of Nations called a 1930 conference at The Hague, but no agreements resulted.) Using the customary international law principle of a nation's right to protect its natural resources, President Harry S. Truman in 1945 extended United States control to all the natural resources of its continental shelf. Other nations were quick to follow suit. Between 1946 and 1950, Chile, Peru, and Ecuador extended their rights to a distance of 200 nautical miles (370 km; 230 mi) to cover their Humboldt Current fishing grounds. Other nations extended their territorial seas to 12 nautical miles (22 km; 14 mi).[7]
By 1967, only 25 nations still used the old three nautical mile limit, while 66 nations had set a 12-nautical-mile (22 km) territorial limit and eight had set a 200-nautical-mile (370 km) limit. As of 28 May 2008, only two countries (Jordan and Palau) still use the 3-mile (4.8 km) limit. That limit is also used in certain Australian islands, an area of Belize, some Japanese straits, certain areas of Papua New Guinea, and a few British Overseas Territories, such as Gibraltar.
While the Secretary-General of the United Nations receives instruments of ratification and accession and the UN provides support for meetings of states party to the Convention, the United Nations Secretariat has no direct operational role in the implementation of the Convention. A UN specialized agency, the International Maritime Organization, does play a role, however, as well as other bodies such as the International Whaling Commission and the International Seabed Authority (ISA), which was established by the Convention itself.
The (Montreux) Convention regarding the Regime of the Straits, often known simply as the Montreux Convention, is an international agreement governing the Bosporus and Dardanelles Straits in Turkey. Signed on 20 July 1936 at the Montreux Palace in Switzerland, it went into effect on 9 November 1936, addressing the long running Straits Question over who should control the strategically vital link between the Black and Mediterranean seas.
The Montreux Convention regulates maritime traffic through the Turkish Straits. It guarantees "complete freedom" of passage for all civilian vessels in times of peace. In peacetime, military vessels are limited in number, tonnage and weaponry, with specific provisions governing their mode of entry and duration of stay. If they want to pass through the Strait, warships must provide advance notification to the Turkish authorities, which, in turn, must inform the parties to the convention. In wartime, if Turkey is not involved in the conflict, warships of the nations at war may not pass through the Straits, except when returning to their base. When Turkey is at war, or feels threatened by a war, it may take any decision about the passage of warships as it sees fit. The USA is not a signatory to the Convention.
While it was designed for a particular geopolitical context, and remains unchanged since its adoption, the Montreux Convention has endured as a "solid example of a rules-based international order", since most of its terms are still followed.
