Panama Shuts Registry to Aging Tankers and Bulkers Amid Sanctions Crackdown

The Panama Ship Registry has formally ceased accepting oil tankers, bulk carriers, and general cargo vessels that are more than 15 years old, marking a major policy shift aimed at curbing the influence of the global shadow fleet and tightening compliance with international sanctions.

The announcement, detailed through an update to MMN 11/2024, follows sustained diplomatic pressure from the United States and a comprehensive review by the Panama Maritime Authority (AMP), which found that a significant percentage—71%—of vessel detentions from 2023 through mid-2025 involved older ships in these categories.

This strategic decision reflects Panama’s intent to strengthen its vetting procedures and preserve the integrity of its maritime flag. By instituting age-based entry restrictions, the registry aims to improve operational safety, minimise detention risks, and block vessels that exploit opaque ownership structures to evade sanctions, especially those linked to Iranian and Russian oil trades.

The move directly targets so-called “shadow fleet” vessels—typically older tankers operating without AIS, under flag-of-convenience registries, and often involved in sanctioned oil transportation. Industry assessments, including those from the NGO United Against Nuclear Iran (UANI), have long flagged Panama’s flag as a haven for such vessels. Nearly one-fifth of tankers suspected of ferrying Iranian oil were reported to be sailing under Panama’s banner.

This latest step follows the delisting of 214 ships in the past year alone under Panama’s accelerated enforcement protocols, introduced in collaboration with the United States. Since 2019, the registry has removed more than 650 vessels in efforts to align with sanctions regimes and international maritime norms.

In addition to age-based exclusions, Panama has reinforced oversight through mandatory quarterly inspections of higher-risk vessels and stricter enforcement of Ship Safety Management System (SSMS) verifications. The new policies are intended not only to prevent the registration of questionable ships but also to maintain compliance with elevated global standards.

Currently, Panama’s ship registry—one of the largest in the world with over 8,500 vessels—includes more than 1,400 tankers and bulkers built prior to 2011. The newly enforced criteria mark a departure from quantity-focused expansion to a model that emphasises quality, safety, and regulatory compliance.

Panama’s stance has been publicly acknowledged by the U.S. Federal Maritime Commission, which previously warned registries against harbouring vessels aiding sanctioned regimes. With growing collaboration between Panama and other major flag states such as Liberia and the Marshall Islands, the move signals a broader shift in the global regulatory landscape for vessel registration.

Reference: Newsrroom Panama

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