Changing ownership structures in the Dutch fleet

Abstract

The new Dutch shipping policy has given rise to high expectation and curiosity in the world of shipping. This, together with the obvious difficulties of an ex-post study of the effectiveness of such innovative policy, has prompted the authors to take an interest in attempting to investigate changes in ownership of the Dutch fleet 2 years after the new policy has been introduced. To do this, a rather new concept of ‘flagging out’ has been adopted, which is interpreted as a process leading to different degrees of ‘foreignness’ in a shipping operation. In this paper, a method to structure is presented, and ownership information, and changes in it are presented, that are essentially based on the theory of stochastic processes. The data used is the Dutch fleet data, which includes information on the nationality of the flag, parent ownership and management over the period 1994–1998. The results yield interesting insights in the shifts in the ownership and operational structure of shipping companies induced by the new policy. In particular, they allow one to establish the origin of new vessels, in which stage of ownership/operation it is most likely that shifts occur, and to determine the relationship between the different stages of the ‘flagging out’ process. These results, thus, enable an evaluation of the areas in which the policy can be expected to yield results.