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The development of ship registration policy in China: Response to flags of convenience
Institution:1. College of Transport and Communications, Shanghai Maritime University, Shanghai, China;2. Department of International Logistics, Chung-Ang University, Seoul, Republic of Korea;3. Department of Civil and Environmental Engineering, Rutgers, The State University of New Jersey, New Jersey, USA;1. Maritime and Technology Faculty, Southampton Solent University, East Park Terrace, Southampton SO14 OYN, United Kingdom;2. China Maritime Centre, University of Greenwich, Old Royal Naval College, Park Row, London SE10 9LS, United Kingdom;1. KEDGE Business School, 680 cours de la Libération, 33405 Talence, France;2. LEMNA, University of Nantes, BP 52231, Chemin de la Censive du Tertre, 44322 Nantes Cedex 3, France;3. INED, Paris, France;1. College of Transport and Communications, Shanghai Maritime University, Shanghai 201306, China;2. Department of Civil and Environmental Engineering, Rutgers, The State University of New Jersey, NJ 08854-8018, USA;1. College of Transport and Communications, Shanghai Maritime University, Shanghai 201306, China;2. College of Management, Shenzhen University, Shenzhen, Guangdong 518061, China;3. Institute of Transportation Studies, University of California Davis, Davis, CA 95616, USA;1. School of Economics and Management, Shanghai Maritime University, Shanghai, 201306, China;2. School of Law, Shanghai Maritime University, Shanghai, 201306, China;3. College of Management, Shenzhen University, Shenzheng, 518061, China;4. Commercial College, Xi''an International University, Xi''an, 710077, China;5. College of Transport and Communications, Shanghai Maritime University, Shanghai, 201306, China;6. School of Navigation, Wuhan University of Technology, Wuhan, 430063, China;7. Hubei Key Laboratory of Inland Shipping Technology, Wuhan, 430063, China;8. School of Environmental Science and Engineering, Southern University of Science and Technology, Shenzhen, 518055, China
Abstract:In order to expand registered fleet tonnage and strengthen ship management, China began to introduce a special tax-free ship registration (STFSR) policy in July 2007. However, more than eight years following its implementation, the policy ended in complete failure at the end of 2015. This paper comprehensively evaluates the main content and implementation process of the Chinese STFSR policy, analyzes the effects of the policy, and summarizes the concrete reasons for the policy's failure and lessons to be learnt. A new governance framework is being designed and future directions are being developed to explore how the government can implement a successful ship registry policy. This research is intended to provide new ideas and information to the Chinese shipping industry's policymakers and stakeholders in order to handle the “flagging out” problem, thereby mitigating the current adverse situation of ship flagging overseas while strengthening the management of ship operation.
Keywords:Ship registration  Flag of convenience  International shipping  Shipping policy  China
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