Marshall Islands Urges Crackdown on “Mickey Mouse” Flag States

System Still Fit for Purpose

Bill Gallagher, president of International Registries Inc. (IRI), which administers the Marshall Islands flag, acknowledged the proliferation of questionable flags but insisted the overall flag state system remains effective.

Shadow Fleet and Sanctions

Hundreds of vessels are sailing under invalid flags, many linked to the shadow fleet transporting sanctioned oil from Russia, Iran, and Venezuela. The issue also affects tugs, supply vessels, cargo ships, and yachts.

Call for Stronger Port State Control

Gallagher emphasized that stronger port state enforcement is the only real solution, drawing parallels with past safety crackdowns on substandard ships.

Transparency and Ownership

He dismissed concerns about hidden ownership, stressing that IRI knows the true identity of all its clients and cannot afford to let “bad actors” slip through.

Breaking the Duopoly

Founded in 1948, IRI originally managed the Liberian registry before shifting focus to the Marshall Islands. Today, the registry ranks third globally after Panama and Liberia, breaking their long-standing duopoly.

Cooperation Among the Big Three

Since 2021, Panama, Liberia, and the Marshall Islands—together covering 60% of global tonnage—have collaborated through the International Flag-State Association, sharing intelligence on problematic vessels.

Growth, Security, and Compliance

Although growth has slowed, Gallagher said expansion continues steadily with investments in IT and compliance. IRI has strengthened its security function by hiring former U.S. naval intelligence officers and maintains close ties with U.S. authorities.

A Tight Net of Compliance

Laura Sherman, IRI’s communications director, noted that while some European counterparts think their compliance net is too strict, it is precisely this rigor that ensures credibility.