Should the Swedish merchant fleet fly the Swedish flag?

Abstract

Sweden has a long tradition of being a strong shipping nation. However, the industry is currently experiencing a rapid trend of shipping companies flagging out from Sweden to other flag states, most often to other European countries. The study explores this trend and touches upon the factors influencing the decision to flag out, how it could be stopped, and what consequences it might have for the Swedish shipping industry. From a transport perspective, the flag of the ship does not matter as the goods will leave/enter the country anyway. However, all respondents except one believe that the flagging out can have a substantial negative impact on the Swedish shipping industry regarding loss of competence, job opportunities, influence in international organizations, etc. All respondents agree that this trend is due to unfavourable competitive conditions associated with flying the Swedish flag. This can be summarized in three categories: economic factors, political decisions combined with lack of maritime strategy from the government, and problems with surveys of the ships.