The Panama Maritime Authority’s announcement that it will no longer flag bulk carriers and tankers over 15 years old is set to reshape global flag registration.
The world’s second-largest flag registry said the policy aims to prevent vessels from the so-called “ghost fleet” registering under the Panamanian flag.
This is the second market-moving policy in under 12 months by the government-run registry aimed at disrupting the dark fleet of aging, sub-standard vessels used to evade Western oil and shipping sanctions.
The first policy, introduced in late 2024, mandates the expulsion of any vessel sanctioned by Western governments from the Panamanian registry.
Panama Flags 10% of Non-Sanctioned Tankers Over 15 Years Old in Windward ‘Dark Fleet’ Analysis
Windward Maritime AI™ identified nearly 1,950 vessels in the dark fleet that operate in sanctioned markets and engage in a range of deceptive and disruptive shipping practices.
Of these vessels, around 10% were built in 2008 or earlier, are not under sanctions, and are flagged to Panama — nearly all marked as high risk. In contrast, only about 1% of Panama-flagged vessels in the dark fleet are 15 years old or younger.
Panama flags 16.1% of the global shipping fleet.
From Windward’s identified grey fleet of approximately 1,315 tankers linked to the Russian regime through behavior or affiliation, 14% are flagged with Panama. Of these, nearly two-thirds (61%) are more than 15 years old.
New Regulations Are Cleaning Out Panama’s High-Risk Ships
Panama’s stricter oversight is pushing risky and dark fleet vessels out of its registry.
The authority’s game-changing policy to de-flag sanctioned tonnage has come at a cost: over 200 ships were removed in the first five months of 2025, and 650 in total since 2019.
The new Panama policy applies only to incoming tankers and bulk carriers aged 15 years or older. Not to existing vessels in the registry. Nearly 2,700 ships currently flagged by Panama fall into this category.
These vessels will now face additional inspections and verification of their Ship Safety Management (SMS) certificates, as outlined in yesterday’s announcement.
The crackdown is expected to drive owners of older tonnage toward registries with looser oversight, accelerating the record levels of flag-hopping seen across the commercial fleet.
Flag-hopping — the practice of switching flags to avoid regulatory scrutiny and inspection — is a known deceptive shipping tactic.
Panama’s move reflects growing Western pressure on marine service providers accused of enabling sanctions evasion and increasing risks to maritime safety, global navigation, and security.
Registries Flagging Sanctions-Evading Ships in Regulators’ Crosshairs
While Panama’s policy may shift sub-standard dark fleet tonnage toward flags with weaker oversight, regulators are increasingly targeting the operators behind those registries as well.
Last month, both the U.S. and U.K. governments sanctioned Intershipping Services — the UAE-based firm managing the Gabon flag registry — for facilitating Russian oil shipments on aging, sub-standard vessels. It marked the first time a flag registry was sanctioned.
Following Russia’s invasion of Ukraine, many dark fleet and Russian-owned tankers moved under the Gabonese flag, as the registry actively courted sanctions-evading business.
Flag administrations disproportionately represented in the dark fleet are now on notice: welcoming older, high-risk tonnage carries growing regulatory and reputational consequences.
