Ship Registration Mechanism with Second Ship Registers Using Aggregate Data

In the highly competitive shipping industry, flagging out has become one of the most important operation strategies for shipowners. In order to attract the vessels back to their national country flags, the traditional maritime countries have adopted various marine policies. Among them, establishment of second ship registers is considered as one of the most effective way in attracting vessels back since the success of the Norwegian International Ship Register and the Danish International Ship Register. In order to understand the influence of the second ship register upon the vessel registration and the mechanism of flag choice decisions, this study transforms the binary and nested logit models with individual-level data to aggregate-level models. The empirical estimate suggests that the policy of establishing second ship registers have a significant effect for attracting vessels registered back to their national countries and this effect will be different for different countries. The results of the nested logit model in analyzing the flag choice mechanism suggest that the second ship register is clustered to the nest of foreign ship registers. This indicates that the second register is more similar to open ship registers in function than their national ones and the key consideration in establishing second registers is the policy adopted which should follow the practice of open registers in order to compete with them. The results also suggest that the economics of national countries and the quality of flags have significant effects on the choice behavior as well.

Language

  • English

Media Info

  • Media Type: Digital/other
  • Features: Figures; References; Tables;
  • Pagination: pp 228-242
  • Monograph Title: Proceedings of the International Forum on Shipping, Ports and Airports (IFSPA) 2015: Empowering Excellence in Maritime and Air Logistics: Innovation Management and Technology

Subject/Index Terms

Filing Info

  • Accession Number: 01609664
  • Record Type: Publication
  • ISBN: 9789623677967
  • Files: TRIS
  • Created Date: Aug 8 2016 3:19PM