Panama registry plans to cancel registration of 128 vessels due to tightening of US sanctions

Panama is set to deregister 128 ships flying its flag after they were sanctioned by the United States, its allies or the United Nations, a senior official said.

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

Merchant ships fly the flags of different countries, which are not necessarily closely linked to the ownership. The so-called flag states typically play a key role in enforcing industry safety standards, inspecting and certifying equipment and crew. According to Franco, Panama has one of the largest flag registries in the world with more than 8,000 ships.

Source: Bloomberg