Panama is the World’s 1st Registry to Implement Compulsory Traceability of Ship-To-Ship Transfers
Panamanian Registry is the first naval registry in the world which has implemented mandatory traceability for Ship-To-Ship operations of hydrocarbons conducted on the high seas. As per the new requirements, any Panamanian-flagged oil tanker with a gross tonnage of 150 tons or more must inform the Panama Maritime Authority (AMP) at least 48 hours before performing an STS maneuver. They have to provide technical and logistical information regarding the operation. Non-compliance with this rule might lead to the cancellation of the registration of the ship in Panama.
This regulation became effective from August 6, 2025 and is outlined in Resolution No. 106-035-DGMM from the General Directorate of Merchant Navy. Vessels have to compulsorily provide data regarding their identity, timing, precise position, operational mode specifications, hydrocarbon type and quantity information, estimated duration, designated contact personnel, and confirmation of MARPOL Agreement compliance. The regulation addresses the increasing use of ships for illegal operations like covert transportation of crude oil, evading sanctions and a lack of environmental controls, and the functioning of the ghost fleet of tankers.
This move comes amidst Panama’s crackdown on the functioning of the shadow fleet. The Panama Maritime Authority recently initiated the procedure to cancel the registration of 17 ships sanctioned by the United States, as part of its zero-tolerance policy against misuse of its ship registry. Many organizations, such as United Against Nuclear Iran, have criticized Panama while reporting that 17% of ships suspected of shipping Iranian oil presently sail under the flag of Panama. The Panamanian Registry has responded with several enforcement measures.
In March 2025, the authority deregistered 107 ships connected to sanctions violations. Additional preventive measures introduced by Panama include a new age restriction policy, which prohibits the registration of oil tankers or bulk carriers older than 15 years, as well as increased due diligence processes for ship registrations and participation in the Registry Information Company with other flag states. Panama states that its actions are in line with the rules of the IMO and they reinstate Panama’s commitment as a responsible flag-holding State, by promoting maritime safety, operational transparency and protection of the marine environment.
