Technically, the applicable law on any ship is determined by the ensign flying on its deck. In the early twentieth century, most shipowners paid to register under the jurisdiction of major marine powers like Britain and the United States, benefiting from their legal regimes and military protection. But eventually, entrepreneurial officials in countries like Panama realized they could raise revenue by offering what’s now called a flag of convenience. By registering their vessels in these places, owners could avoid developed-world rules on wages, working hours, and union membership, while also
...more
