Panama registry set to remove 128 ships as US sanctions tighten

Panama is set to cancel the registration of 128 ships sailing under its flag after they were sanctioned by the US, its allies or the United Nations, a top official said, Report informs via Bloomberg.

At least 70 tankers have already been removed and dozens more will follow, said Ramón Franco, general director of merchant marine at the Panama Maritime Authority, which oversees the registry. The move, which follows a pledge last year to penalize blacklisted vessels, will represent a loss of up to $2 million in revenue, he added.

“We are 100 years old and counting,” Franco said on the sidelines of a maritime conference in Singapore. “We definitely are not going to be left behind in the face of current challenges of the industry and, of course, sanctions are one of them.”

Merchant ships sail under the flags of various countries that aren’t necessarily closely linked to ownership. So-called flag states typically play a key role in upholding industry safety standards, inspecting and certifying the equipment and crew. Panama is one of the largest flag registries in the world with more than 8,000 ships, according to Franco.