Shipping companies, just like pirates, prefer to exist in a world of little regulation. They register their ships in countries like Liberia, Panama and the Bahamas that offer lax regulation and lower taxes. If you fly the Bahamian flag (even if you’re a Danish company with a Russian crew) you follow Bahamian labor laws, inspection rules and pay Bahamian taxes. That is how ships wind up flying the Mongolian flag - a country that has no coastline!
