Panama Actively Deregisters Vessels That Do Not Comply With International Laws

The Panama Maritime Authority (PMA) announced that its ship registry now maintains a 96.5% compliance rate with international safety and environmental regulations.

Recently, U.S. officials and lawmakers accused the country of not taking sufficient action to prevent sanctioned nations like Iran, Russia and Venezuela from using its flag.

Washington has urged Panama to deregister dozens of ships associated with the transport of sanctioned goods, including oil, and those involved in deceptive activities like ship-to-ship cargo transfers to hide the origin of shipments.

In response, the PMA confirmed that it has been actively removing vessels that do not comply with international laws. The latest review of its fleet by an independent monitoring agency confirmed that Panama’s registry adheres to strict global maritime regulations.

The PMA stated that it has increased its oversight and has expelled ships that fail to meet required safety and compliance standards.

A spokesperson from the PMA said that the registry does not support sanctions evasion and follows a strict zero-tolerance policy against any misuse.

Officials said that the country has cancelled the registration of 68 vessels listed in sanctions imposed by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC).

Several other ships appearing on the UK’s and US’s sanctions lists have also been removed.

In 2024, the Panama Ship Registry recorded a net addition of 468 vessels, bringing the total count to 8,773 ships under its flag, with a combined gross registered tonnage (GRT) of 248.8 million.

Among these, 408 newly built ships contributed over 9.4 million GRT. Panama has introduced several key measures. In September, the Panama Flag Precheck Process was launched to improve the screening of new ship registrations.

The country also joined the Registry Information Sharing Compact (RISC), a global initiative aimed at preventing vessels from “registry hopping” to avoid sanctions enforcement.

In October, Executive Decree No. 512 was issued, expanding the authority of the PMA to act against ships involved in sanctions violations or other illegal activities.

The legal framework is backed by Article 49 of General Law 57 of the Merchant Marine, which allows Panama to revoke the registration of ships found to be engaged in unlawful operations.

In recent months, Panama has also targeted vessels linked to Russian sanctions. In November, the country deregistered four LNG carriers tied to Russian gas producer Novatek.

This was followed by the removal of six more ships in December after they were sanctioned by the UK.

Panama’s registry remains the world’s largest by vessel, accounting for 15% of the global merchant fleet tonnage. It undergoes regular evaluations through multiple international agreements, including those from the Paris and Tokyo Memoranda of Understanding (MoU), the Indian Ocean MoU, the Black Sea MoU, the U.S. Coast Guard, and other maritime safety organisations.

Reference: Reuters, Shipping Telegraph

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