The Panama Ship Registry has become the first flag in the world to implement stricter controls and mandatory traceability for offshore ship-to-ship (STS) transfers of hydrocarbons. Non-compliance—depending on its severity—may lead to the cancellation of a vessel’s Panamanian registration.
The regulation requires all Panamanian-flagged oil tankers with a gross tonnage of 150 or more to notify the Panama Maritime Authority (PMA) at least 48 hours in advance, providing full technical and logistical details of each STS operation wherever it takes place in the world.
“This measure responds to the increasing use of vessels in illicit activities such as covert crude transport, sanctions evasion, and operations lacking environmental controls—practices often associated with the so-called shadow fleet,” the flag explained in a release.
Panama, the world’s second-largest flag, has been taking plenty of steps to distant itself from the sprawling shadow fleet, including axing many vessels from its books as well as taking the decision this month to bar tankers and bulkers older than 15 years old from joining the registry.