Description

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Context

In the aftermath of the Pahalgam terror attack India’s Directorate General of Shipping issued a ban on the entry of Pakistan-flagged ships into Indian ports under Section 411 of the Merchant Shipping Act, 1958.

Pakistan reciprocated with a similar ban on Indian-flagged ships.

What Does a Ship’s Flag Represent?

A ship’s flag indicates the country of registration or the flag state not necessarily the owner’s or crew’s nationality.

According to the International Maritime Organization a ship’s registration links it to a state which exercises jurisdiction over it.

Functions of a Flag

Function	Explanation
Legal Jurisdiction	The flag state has the right and duty to exercise control over the ship under international law.
Safety and Standards	The flag state enforces compliance with international standards like safety, environmental protection, and labor laws.
Nationality	Grants nationality to the vessel; the ship is considered an extension of the territory of the flag state.
Crew Protection	In case of accidents or disputes, legal remedies are provided under the flag state's laws.

Legal Framework Governing Ship Flags

Merchant Shipping Act, 1958 (India)

Applies to Indian-flagged ships globally and foreign-flagged ships in Indian waters.

Ensures safety of ships and lives at sea.

UNCLOS (1982)

Requires a genuine link between ship and state.

However it does not define what constitutes a genuine link, leading to loopholes and flag of convenience practices.

Types of Ship Registries

Registry Type	Characteristics
Closed Registry	Only allows ships owned/operated by nationals or companies of that country. (e.g., India)
Open Registry	Allows foreign ships to register, often with minimal requirements. Popular for cost-saving.
Hybrid or Second Registries	Conditional flexibility (e.g., national registry for coastal trade, open for foreign trade).

Flag of Convenience

When a ship registers in a country for economic or legal benefits, even if it has no real ties to that country.

Benefits to Shipowners

Lower taxes

Lenient labor and environmental laws

Reduced operational costs

Quicker registration process

Top Flag of Convenience States (2023, as per The Diplomat)

Country	Reasons for Popularity
Panama	Low taxes, no minimum crew nationality, quick registration
Liberia	Streamlined digital registry, tax incentives
Marshall Islands	High-quality shipping standards, U.S. affiliation
Others	Hong Kong, Singapore, China, Malta, Bahamas

Concerns

Concern	Example/Impact
Poor Oversight	Lax safety inspections and poor labor conditions on FoC ships
Fraudulent Registrations	DRC reported 73 vessels fraudulently using its flag for illegal fishing (2017)
Environmental Risk	Easier for polluting ships to escape consequences
Maritime Security	Difficult to trace ownership in case of smuggling or terrorism

Sources:

INDIANEXPRESS

PRACTICE QUESTION

Q. Under which legal provision did India ban Pakistan-flagged ships from entering its ports?

A. Article 21 of the Indian Constitution
B. Section 11 of the Indian Ports Act, 1908
C. Section 411 of the Merchant Shipping Act, 1958
D. Article 297 of the Indian Constitution

Answer: C

Explanation:

The ban was issued under Section 411 of the Merchant Shipping Act 1958 which deals with control over foreign ships in Indian waters in special circumstances.