Switzerland, an Alpine nation, is rewriting the rules to revive its (surprising) merchant fleet

How?

There is something paradoxical — and at the same time deeply Swiss — about the idea that one of the world's most landlocked countries has a merchant fleet sailing the oceans under a red-and-white cross.

Now that fleet wants to grow again.

A story born out of necessity

To understand what is happening today, you need to go back to 1941. Switzerland, hemmed in by warring nations and facing increasingly fragile supply lines, made an unusual decision: to build its own merchant fleet, capable of securing the country's essential supplies even in times of crisis. It was a pact between the Confederation and the private sector, backed by federal financial guarantees and a fundamental clause: in an emergency, shipping routes would be managed according to national priorities.

A pragmatic idea quintessentially Swiss! And for decades, it worked.

At its peak, the Swiss fleet counted over 50 cargo ships, a world record for a landlocked country. They called it "the most singular fleet in the world," and it was no exaggeration.

The crisis that changed everything

Around 2010, the sector fell into deep crisis: several ships were sold off at a loss, and the Confederation absorbed estimated losses of around 800 million Swiss francs. The fleet shrank to historic lows, from 50 vessels to barely a dozen. A painful contraction but one that forced a complete rethinking of the model.

The 2026 turning point: new rules, new strategy

The Swiss Parliament has completed its revision of the economic supply law, officially ending the federal guarantee system the State support that kept the fleet afloat for decades. A decision that marks the end of an era.but something new is taking its place.

The Federal Council has adopted an ordinance amendment set to take effect on 1 July 2026, with a clear goal: to make the Swiss flag far more attractive to shipowners around the world. How? By dismantling one of the historically most restrictive requirements: until now, both the owner and the operator of a vessel had to be Swiss in order to sail under the white cross. Under the new rules, foreign-owned ships will also be eligible for registration in the Swiss fleet. In short, the shift is from a logic of national security to one of economic competitiveness.

But what remains "Swiss" about a Swiss ship?

The authorities' answer is clear: what remains is a brand. The Swiss flag at sea evokes reliability, precision, and innovation, the very same values that make Swiss products sought after worldwide, from watches to machinery, from finance to pharmaceuticals. The idea is that the same premium brand can work in maritime transport too, attracting #shipowners willing to pay for the reputation that flag carries, alongside new commercial models made available to them.

It's not a far-fetched idea. Several small states (Panama, Liberia, the Marshall Islands) have built enormous fortunes by offering their flag to foreign fleets. Switzerland isn't aiming to become an open registry on that scale, but it clearly wants to carve out a quality niche in that market.

Who stands to gain (including fiscally)

There is also a concrete angle worth noting: every vessel registered under the Swiss flag generates tax revenue for the Confederation. And among the Cantons that could benefit most is — unsurprisingly — Ticino, long a crossroads between the Latin and Germanic worlds, with a deep-rooted entrepreneurial tradition in international trade.

A bet worth watching

The story of the Swiss fleet is, at its core, a story of adaptation. A country without a coastline that learned to navigate. A system that fell into crisis and is now searching for a new form.

Whether the Federal Council's gamble will pay off, whether international shipowners will truly choose to raise the white cross on a red field, will depend on how much that flag can be worth, not just symbolically, but economically.

For now, the curtain rises on the first of July. The rest will be written by the waves.

Sources: RSI / TVSvizzera.it, June 2026