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Norwegian Fish Council (left); UN Food and Agriculture Organization (right) In chart at left, “capture total” refers to wild catches. Chart at right reflects marine catches in total tonnage, 1950-2010.Scarcity caused by overfishing also drives up costs for fishermen. Having depleted fishing stocks in their own waters, vessels must now sail farther and trawl deeper. That requires more time, labor, fuel—and money.Another reason overfishing is making catching fish harder: Governments limit how much of their fishing stock can be fished. Since overfishing already, according to the World Bank, international regulatory groups set caps on how many fish of major species can be caught. Countries must then report their catches to the United Nations’ Food and Agriculture Organization (FAO) to ensure that everyone’s sticking to the plan.Skirting those laws means avoiding limits on what you can catch—practices referred to as IUU—illegal, unreported and unregulated fishing. And because enforcement is often lax, IUU fishing comes with a very low level of risk and a very high reward.

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One of the best tricks to pull this off is ”” (pdf, p.53). The big business of flag-hoppingMore formally known as using “flags of convenience” (FOC), the practice of flag-hopping involves Country A allowing a vessel from Country B to sail under Country A’s flag, for reasons explained further below.

Flag-hopping is a time-honored way of slashing operating costs and dodging taxes and home-country regulations, but the practice has picked up in recent years in part because of overfishing.Flag-hopping vessels bring in roughly each year. Some of that comes at the expense of legal fishermen—often those living in poor countries—who lose out on catches in their own territorial waters. Because FOC vessels seldom report their catches to the country whose flag they’re sailing, they can exceed fishing quotas without restrictions.

Even the ships that do adhere to country quotas end up overfishing, since the quotas are typically designed to wring maximum economic value out of a given species without collapsing its population. As a result, the booming FOC trade is pushing many fish populations closer to collapse than most people realize. “Flags of convenience” for saleThere are many reasons, both legal and illegal, for Country A and Country B to flag hop. Country A’s motives are fairly straightforward. It pockets a fee for licensing a fishing vessel to fly its flag.

Many countries have “” that let foreign vessels rent the right to sail under their flag. Countries like have led the way. Around are flagged to suggest they belong to one of those four countries (pdf, p.63), according to CIA data, despite the fact that those countries constitute a combined 0.12% of the world population. Even Bolivia and Mongolia have gotten into the lucrative FOC business, despite not having any shores for docking ships.It’s also extremely easy to register as an FOC; with a few minutes and a credit card, anyone can license their very own flag of convenience from.Here’s a look at how the overall FOC shares have trended (this includes other types of shipping vessels). The low risks and high rewards of flag-hopping to fishCountry B’s vessels flag hop for various reasons.

Non-fishing ships typically want to duck taxes or their home country’s labor laws, a common practice for profit margins.Some fishing vessels flag hop to cut costs, too. But as fish become scarcer, more fishing vessels are flag-hopping (pdf, p.53) about overfishing, since FOC countries generally don’t take part in regional fisheries agreements or bilateral deals. Also, FOCs make it notoriously difficult to identify (pdf, p.28)—and even harder to punish them. Even if the real owners are identified, the country whose flag the vessel sails under is, and “open registry” countries almost always shirk enforcement obligations.Pillaging other countries’ coastlinesPoor countries that can’t afford well-staffed coast guards suffer the most from flag-hopping.

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Researchers estimate that illegal fishing vessels cost developing countries between (pdf, p.53), at a minimum.With little threat of enforcement, there’s no reason to report fish caught illegally and risk hitting the quotas of those governments. Recent research led by Daniel Pauly, a scientist at the University of British Columbia, found that even though China purports to have the biggest distant-water fishing fleet in the world, it reported only 386,000 tons of fish caught per year from 2000-2011. The researchers estimated that what it reported.Chinese fishing vessels were trawling in the territorial waters of more than 90 countries, according to the report, many in which China reported no catch. The discovery explained why the numbers of, despite fishery quotas designed to boost their numbers. Many of these vessels were fishing illegally under another country’s flag.The scientists estimated that West Africa—where coast guards are notoriously understaffed—experienced some of the worst overfishing by Chinese ships. PEW Charitable Trusts China’s take.China isn’t the only flag-hopping culprit, nor is it the worst.

The Environmental Justice Foundation found that some 12% of large-scale fishing vessels licensed with the top 13 FOC countries —and that only accounts for the ones that the researchers could identify. Illegal fishing by foreign vessels in lost trade for domestic fishermen each year, and accounts for nearly. Guinea’s fishing industry, which employs 80,000 people and contributes 4% of its GDP, to illegal fishing vessels, according to the Environmental Justice Foundation.In East Africa, Mozambique’s government says illegal fishing of prawns and tuna caused last year. Southeast Asian countries also suffer considerably; a year to illegal fishing. The floating frozen markets for fish launderingTo evade enforcement, flag-hopping vessels participate in “transshipping,” or to other boats known as “reefers.” Reefer vessels have vast refrigerators in which they can store huge caches of fish for long periods between ports.

Fishing vessels sell their fish to the reefers in exchange for fuel and food, which is a service reefers offer to both legal and illegal fishing vessels to help them avoid expensive journeys back to their home ports.At least 700 reefers are currently sailing under another country’s flag—around 70% of them under the colors of Panama, Liberia or the Bahamas, (pdf, p.17). Environmental Justice Foundation From ships of convenience to ports of convenienceReefers take the hodgepodge of fish from various other ships and sell them at a premium, usually at “ports of convenience.” In other words, reefers launder illegally caught fish, which makes tracing the origin of the fish they sell extremely difficult. ”High sea transshipment is a big problem now,” says Pauly. “We have no idea how much transshipment catches there are and they are the key enabling mechanism of IUU fishing.”The most well-known port of convenience for the European market is the Spanish port of Las Palmas, on the Canary Islands. EJF says that are traded in the Las Palmas market each year, though the port has to some extent recently. Port Louis in Mauritius is also an illicit fishing haven.Thanks to scant regulation, China is also emerging as a “port of convenience,” says Pauly. ”The Russian far east is where there’s a huge amount of illegal fishing,” he tells Quartz.

“The IUU market is more open to developing countries due to trade status and thus China is a laundering place for fish from Russia.” The main flag-hopping culpritsAs mentioned above, the EU has the most flag-hopping fishing vessels, about (pdf, p.6). Some of that flag-hopping is done to avoid taxes and labor laws, which is legal, but a good proportion isn’t. Exact numbers aren’t available, but there’s a of anecdotal evidence. EU vessels were recently implicated in illegal fishing in the Gulf of Guinea, sailing under flags of convenience. Taiwan is, as are. Here’s a look at the biggest FOC countries, but keep in mind that these countries’ FOC vessels aren’t all fishing vessels.

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