The Panama Ship Registry will cease accepting applications to register oil tankers and bulk carriers that are more than 15 years old. This measure is intended to improve fleet performance, minimise the risk of vessel arrests, and prevent the inclusion of ships associated with what is referred to as the “shadow fleet”.
According to the Panama Maritime Authority, these shadow fleet vessels largely consist of ageing oil tankers with unclear ownership, inadequate insurance coverage, and practices considered unsafe. Such vessels are reportedly used to avoid international sanctions, especially those related to the transport of Russian and Iranian oil.
The new policy has been incorporated into an update to MMN 11/2024, which outlines the requirements for the Precheck verification process required for vessels seeking registration under the Panamanian flag.
The decision follows a review of inspection data indicating that 71% of ship arrests between 2023 and mid-2025 involved oil tankers, bulk carriers, and general cargo ships more than 15 years old.
Panama has also introduced additional oversight mechanisms, including mandatory quarterly inspections for higher-risk vessels and more stringent assessments of Ship Safety Management Systems.
Although Panama has removed over 650 vessels from its registry since 2019 in connection with enforcement of international sanctions, it has faced scrutiny regarding its response to sanction-evading ships.
The non-governmental organisation United Against Nuclear Iran (UANI) recently stated that Panama has not taken sufficient action against sanction violators, noting that nearly 20% of ships suspected of transporting Iranian oil are registered under the Panamanian flag.
With over 8,500 ships, Panama operates one of the world’s largest registries. It continues to implement measures aimed at strengthening enforcement, including the removal of 214 vessels since the adoption of expedited sanctions enforcement procedures in 2024.
Vessels that are deregistered are no longer permitted to operate under Panama’s flag.
Panama said it is cooperating with the United States on matters concerning ship registration and has signed information-sharing agreements with other flag states, such as Liberia and the Marshall Islands, to improve coordination regarding vessels rejected due to potential sanctions issues.
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