Boosting fleet safety and compliance, Panama has announced significant changes to its ship registration policies. The Panama Maritime Authority (PMA) will now cease accepting applications to register oil tankers and bulk carriers that are over 15 years old.

Why the New Restrictions?

The decision stems from concerns over the safety, ownership transparency, and sanctions evasion associated with older vessels. These ships, often part of the so-called “shadow fleet,” are typically characterised by unclear ownership, inadequate insurance coverage, and unsafe practices. They have been reportedly used to bypass international sanctions, especially those related to Russian and Iranian oil exports.

Recent data reveals that between 2023 and mid-2025, approximately 71% of ship arrests involved vessels older than 15 years, including oil tankers, bulk carriers, and general cargo ships. This has prompted the Panama authorities to take decisive action to improve fleet performance and reduce risks.

New Regulatory Measures

The updated regulations are outlined in MMN 11/2024 and include:

• Prohibition on registering ships over 15 years old in the Panama registry, especially oil tankers and bulk carriers.
• Mandatory quarterly inspections for high-risk vessels.
• Enhanced assessments of Ship Safety Management Systems for vessels seeking registration.

These measures not only aim to improve safety standards but also to curb the use of ships involved in illicit activities.

Enforcement and Global Cooperation

Since 2019, Panama has removed over 650 vessels from its registry as part of efforts to enforce international sanctions. Despite this, the country has faced criticism from organisations like United Against Nuclear Iran (UANI), which noted that nearly 20% of ships suspected of Iranian oil transport are registered under Panama’s flag.

Panama has emphasised its commitment to cooperation with the United States and other flag states. It has signed information-sharing agreements with Liberia, the Marshall Islands, and others to better coordinate actions related to ships flagged by Panama that are flagged for sanctions violations.

Impact and Future Outlook

With a fleet of over 8,500 ships, Panama operates one of the world’s largest ship registries. The new restrictions are expected to further strengthen enforcement and accountability. Since adopting expedited sanctions enforcement procedures in 2024, Panama has already deregistered 214 vessels, barring them from operating under its flag.

The country remains dedicated to transparency and international cooperation in managing its maritime registry, aiming to ensure safety, security, and compliance on the global maritime stage.