Panama tightens rules to block "shadow fleet" vessels

Panama has updated its ship registry policy in a bid to boost fleet performance, reduce detention risks and prevent entry by vessels linked to the so-called “shadow fleet.”

From August 1, the Panama Maritime Authority (PMA) will no longer register oil tankers or bulk carriers over 15 years old, Caliber.Az reports per foreign media.

The move follows an internal review of inspection and detention data, which focused on sanction-related risks and vessel operations.

The PMA’s Merchant Marine Directorate found that between 2023 and mid-2025, 71% of vessel detentions involved bulk carriers, general cargo ships and oil tankers more than 15 years old.

Additional inspections will now be carried out every three months by an authorised certification body.

“By prioritising quality over quantity and introducing stricter oversight mechanisms, Panama’s fleet will meet the most demanding international standards, enhancing industry safety and sustainability,” the PMA said.

Panama operates one of the world’s largest open ship registries, historically attracting ageing vessels through its flag‑of‑convenience model.

However, it has recently faced pressure over permitting so‑called “shadow fleet” tankers—often older ships with opaque ownership that evade sanctions via ship‑to‑ship transfers, AIS spoofing and frequent reflagging.

In response, Panama’s Maritime Authority has intensified enforcement since 2019, removing over 650 vessels for non‑compliance and reinforcing verification protocols through updated registry rules and quotas, achieving a reported compliance rate around 96.5 %

By Aghakazim Guliyev