Liberia is the second-largest ship registry in the world, according to shipping analyst Clarksons Research.
According to Liberian International Ship & Corporate Registry (LISCR) chief commercial officer, Alfonso Castillero, a key driver is the agreement on port dues between China and the Liberia registry.
“Owners and managers have also been shifting their fleets to Liberia because of the huge cost savings available under the historic agreement on port dues with the People’s Republic of China. This agreement, which was recently renewed, can result in savings to owners of millions of dollars,” said Mr Castillero.
VLCCs could save over US$150,000 a year (source: LISCR)]
“Compared to other flags, the detention rate for Liberian-flag ships was down significantly in key jurisdictions in 2018, especially in areas like China, where other flags experienced an increase in their detention rates. This was due in no small part to the success of Liberia’s complimentary Detention Prevention Programme, the first of its kind developed by a flag state.”
He noted that the registry had grown rapidly: “The Liberian fleet was the fastest-growing major open flag in both the shipping and offshore sectors in 2018, and currently has a growth rate of 8% – more than twice that of most other open flags.”
Discuss operational cost savings for VLCCs and other tanker at the Asian Tanker Conference in February in Singapore.