Notes, Definitions, and Abbreviations (continued)
low or nonexistent taxation of profits, and liberal manning requirements. True FOC registers are characterized by having relatively few of the ships registered actually owned in the flag state. Thus, while virtually any flag can be used for ships under a given set of circumstances, an FOC register is one where the majority of the merchant fleet is owned abroad. It is also referred to as an open register.
Flag state—The nation in which a ship is registered and which holds legal jurisdiction over operation of the ship, whether at home or abroad. Differences in flag state maritime legislation determine how a ship is manned and taxed and whether a foreign-owned ship may be placed on the register.
Internal register—A register of ships maintained as a subset of a national register. Ships on the internal register fly the national flag and have that nationality but are subject to a separate set of maritime rules from those on the main national register. These differences usually include lower taxation of profits, manning by foreign nationals, and, usually, ownership outside the flag state (when it functions as an FOC register). The Norwegian International Ship Register and Danish International Ship Register are the most notable examples of an internal register. Both have been instrumental in stemming flight from the national flag to flags of convenience and in attracting foreign-owned ships to the Norwegian and Danish flags.
Merchant ship—A vessel that carries goods against payment of freight. Commonly used to denote any nonmilitary ship but accurately restricted to commercial vessels only.
Register—The record of a ship's ownership and nationality as listed with the maritime authorities of a country. Also, the compendium of such individual ships' registrations. Registration of a ship provides it with a nationality and makes it subject to the laws of the country in which registered (the flag state) regardless of the nationality of the ship's ultimate owner.
Money figures: All are expressed in contemporaneous US dollars unless otherwise indicated.
Net migration rate: The balance between the number of persons entering and leaving a country during the year per 1,000 persons (based on midyear population). An excess of persons entering the country is referred to as net immigration (3.56 migrants/1,000 population); an excess of persons leaving the country as net emigration (-9.26 migrants/1,000 population).
Population: Figures are estimates from the Bureau of the Census based on statistics from population censuses, vital registration systems, or sample surveys pertaining to the recent past, and on assumptions about future trends.
Total fertility rate: The average number of children that would be born per woman if all women lived to the end of their childbearing years and bore children according to a given fertility rate at each age.
Years: All year references are for the calendar year (CY) unless indicated as fiscal year (FY).
