Under international maritime law, every merchant and fishing vessel must be registered to a specific country, known as its flag state.
Think of the flag state as the vessel’s nationality. Just as a person travels on a passport issued by their country, a ship operates under the authority and protection of its flag state. This country is responsible for inspecting the vessel, issuing safety and environmental certificates, and ensuring the crew is treated according to labor laws—regardless of where in the world the ship is actually sailing.
Open versus national registries
Not all flag states operate the same way.
National (or closed) registries generally require a genuine link between the vessel and the country—for example, the owner must be a citizen or the company must be based there.
Open registries (often called flags of convenience) allow vessel owners from any country to register their ships. These are commercial services often chosen for lower taxes, cheaper crew costs, or less bureaucracy.
Why the flag matters for risk
While many open registries are reputable, the system creates a loophole: it allows vessel owners to shop around for the regulator that offers the least amount of oversight.
Bad actors often exploit this by:
Flag hopping: Frequently changing flags to stay one step ahead of the law.
Using blacklisted flags: Registering with flag states known for poor enforcement to avoid costly safety repairs or fishing quotas.
False flagging: Broadcasting a fake flag identity to hide entirely.
Starboard’s flag risk indicators are designed to help you identify these behaviors, verifying whether a vessel’s "digital passport" is valid, stable, and backed by a responsible authority.
Distribution of risk levels
Risk indicators are categorised into themes including IUU fishing, journey, and identity. Each risk indicator has one or more relative risk level assigned as below.
| 🟢 | 🟡 | 🟠 | 🔴 |
Flag identity & registration |
|
| Flag unverified
Flag unknown | Flag false
|
Risk indicators
🟠 🔴 Flag identity & registration
Incorrectly identifying as being registered in a certain country, can disguise vessel identity, help avoid inspections, or mask illicit activities. This risk indicator applies when there are issues with the registered flag of a vessel.
🟠 Flag unverified - The vessel is broadcasting a flag on AIS, but no corresponding match could be found in the global IMO database. Although the vessel type and activity suggest it should be registered, the lack of a verified link prevents Starboard from confirming the flag's validity.
🟠 Flag unknown - The vessel’s flag is recorded as unknown or stateless in the IMO record. Without a valid flag state, the vessel is not subject to standard jurisdiction, making it a critical compliance risk.
🔴 Flag false - The vessel is claiming a flag on AIS (e.g., claiming to be from New Zealand), but the authoritative flag administration has confirmed that the vessel is not legally registered in that country. This is a severe indicator of identity fraud, often used to bypass sanctions or fisheries restrictions.