Flagging decisions of maritime businesses and impacts on shipping markets

Shipping markets, due to complex, flexible international structure represent a very dynamic character. These markets are at the center of global economy and international trade. Maritime businesses, as main actors of maritime markets, are at focal point of maritime activities. Maritime businesses make strategic decisions concerning ships which undertake the responsibility of the transportation activities. Flag selection decision is one of the most important strategic decisions of maritime companies. These strategic decisions are realized under the effects of macro and micro external environmental factors. This study is carried out within the scope of country selection decisions in order to define the main factors affecting flag selection decisions of maritime companies and to determine the effects of these decisions on shipping markets. In this study initially a qualitative study has been conducted to determine the factors likely to affect flag selection decisions and the variables that have an impact on these decisions. These variables have then been reviewed and worked on in an integrated model based on the literature related to both country selection decision making processes and maritime business related issues. The second stage of the study comprises a survey making use of a questionnaire for data collection. The questionnaire for the quantitative study has been applied to ship operators and supporting stakeholders of ship operator companies for a comparative analysis. The results of the study cover the factors likely to affect the flag selection decisions and their impacts on shipping markets.