Iranian incident with rogue cargo vessel has logistics management implications

The recent Iranian seizure of a cargo vessel in the Strait of Hormuz has created a national security problem for the United States, even though the ship is chartered to Maersk – a Danish company, and flies the flag of The Marshall Islands – a self-governing republic in Micronesia. Rickmers Ship Management, which arranged the charter, is based in Singapore. So far, determining who actually owns the Maersk Tigris has been unclear.

If the shipping community needed one more reason for eliminating “Flags of Convenience,” this may certainly be the one demanding our immediate attention.

But as readers of this column know, there are plenty of other compelling arguments against FOC’s. Chief among them are related to the Dark Side of globalization, which permits exploitation of seafarers.

Under existing conditions, many of these registries are not even accountable to the country of the flag. With minimal regulation, low taxes, and few additional fees, FOC’s are free to draw from the lowest paid labor pool and expose them to uncounted risk.

According to Rickmers spokesmen, there are 24 crew members on the vessel, mostly from Eastern Europe and Asia although there was also a British national among them.

Meanwhile, it appears that the U.S. is charged with resolving the issue and gaining the freedom of these captives. The 1983 Compact of Free Association, in fact, demands that our nation provide security for the Marshall Islands…and its rogue fleet of cargo ships.