Ocean going ships are often registered in countries other than the ones from where they come. For instance, a shipping company might be headquartered in one country, such as France or Great Britain, but register their ships in another country. They do this because the maritime laws of the other country are more lenient (or easier to follow) that the laws of their own country.

Many of the world's ships are registered in Liberia, Panama, and Bermuda. That is because the rules about things like workers' pay, safety equipment required on board, and even the construction of the ship are less rigorous in those countries. Many companies believe that it is cheaper to operate a ship registered in Panama than it would be to operate a ship registered in the United States. That is because the United States has very strict rules about how sailors are to be treated and paid, safety equipment and procedures that must be on board, and how much of the ship has to be built in the United States. So when a ship is registered in a country other than the one its owners are from, it is said to fly a "flag of convenience."

On the the maritime report, you have noticed that a large number of ships that come into the Port of Baltimore fly the flag of Panama. Remember that does not necessarily mean that the owners of the ship are from Panama, or that the ship's last port of call was Panama, or that it has ever even been to Panama! It simply means that the ship is registered in Panama.

Look at the maritime report again. Focus on the "last port of call." Can you guess from what direction the ships that are registered in Panama came from? Do you think it Panama or some other place in the world?