Panama de-flags 17 US-sanctioned vessels

The Panama Maritime Authority (PMA) has de-listed 17 Panama-flagged vessels recently targeted by the US government for facilitating sanctioned oil transport.

IMAGE: A cruise liner approaching the first of the Panama Canal Locks, Gatun Lock, early in the morning. Getty Images

The announcement comes after Washington sanctioned more than 50 vessels last week, for allegedly transporting sanctioned Iranian and Russian oil and petroleum products, marking one of the US' biggest sanction actions to date.

The canal authority has “proactively strengthened its oversight mechanisms to prevent the inclusion of undesirable actors under the Panamanian flag,” it said.

To curb shadow fleet activity, Panama will subject all vessels applying to its registry, along with their owners, operators, and charterers, to strict due diligence, the PMA said.

It has further decided to not register oil tankers and bulk carriers that are older than 15 years.

A ‘shadow fleet’ includes a covert fleet of aging, substandard vessels to bypass sanctions designed to limit its crude oil shipments.

The PMA reaffirmed its zero-tolerance stance on misuse of its ship registry, committing to bar vessels and companies listed under international sanctions recognized by the Panamanian state.

By Aparupa Mazumder

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