Panama closes registration for old ships to counter Russia and Iran’s “shadow fleet”

Panamanian authorities have banned the registration of ships older than 15 years in an attempt to rid its fleet of dangerous and questionable players.

Panama has announced new, stricter rules for ship registration. Now, tankers, bulk carriers and general cargo vessels older than 15 years will no longer be able to register under its flag, writes “Offshore Energy”.

The reason is the desire to improve fleet efficiency, avoid delays due to technical problems and minimize participation in the activities of the so-called “shadow fleet”.

According to analytics from the Panama Maritime Authority (PMA), over 70% of all detentions of ships under the Panamanian flag in the past two and a half years have concerned older ships. They are often associated with gray transportation – in particular, the delivery of oil from sanctions, illegal STS operations, operation without valid insurance or violation of environmental standards.

The new rules also include increased controls: regular inspections of ships every three months, especially for ships with identified defects, as well as audits of safety management systems (ISM).

This is another step by Panama to demonstrate responsibility as a flag state. It has previously tightened rules for STS operations in response to the activity of Russia’s “dark fleet”, which is increasingly using offshore zones and opaque schemes to export oil.

The International Maritime Organization (IMO), which, although it does not impose sanctions directly, supports restrictions, welcomes such steps as a response to three “critical challenges” for the global shipping industry: the shadow fleet, decarbonization and geopolitical instability.

Amid global sanctions, a number of countries have also joined the fight against “gray” logistics: Sweden and Germany, for example, have begun to stop tankers that even just pass through their waters to check their insurance in case of oil spills.

Panama’s restrictions could seriously complicate the lives of shipowners working in the interests of the Iranian or Russian regimes – after all, it is the old ships that are usually involved in illegal oil supply schemes from these countries. USM previously reported that Panama has already removed more than 650 ships from its register due to sanctions.