The Panama Maritime Authority (PMA) on Wednesday (30 September) announced that, after an internal investigation, it will automatically cancel the registration of any vessel found to be involved in illicit activities or that changes its flag in order to evade sanctions. 

This clarification follows the recent inclusion of seven Panamanian-flagged vessels on the list of the Office of Foreign Assets Control (OFAC).

Panama has adopted a series of strategies to reduce the inclusion of vessels on sanctions lists, including:

Panama has adopted a series of strategies to reduce the inclusion of vessels on sanctions lists, including:

• The monitoring and control section was moved to a protection department that is more aligned with its functions. The Control and Monitoring section was moved from the Department of Navigation and Maritime Safety to the Maritime Ship Protection Department, given its close relationship with international sanctions activities and the surveillance of the merchant fleet.
• In September 2024, the “Panama Flag Precheck Process” was published, a circular that establishes prerequisites for flagging and that allows due diligence to be carried out on the vessel, its owner and its operator.
• Panama signed the Registry Information Exchange Agreement (RISC) to prevent a ship from moving from one registry to another, seeking to commit some type of illicit activity or trying to evade compliance with imposed sanctions.

The General Directorate of Merchant Marine of the AMP is evaluating additional strategic measures that allow for the expeditious cancellation of the Panamanian flag of vessels with proven links to activities that go against national interests, international instruments or the shipping industry in general.

There are legal mechanisms used to cancel the registration of vessels included in sanctions lists, such as the one described in Article 49 of the General Merchant Marine Law 57, which establishes the causes for automatic cancellations, such as the use of the vessel for smuggling, illegal trade and piracy, among other crimes.

The Panamanian Shipping Registry will not negotiate with anyone who wants to use it improperly and will apply the established legal mechanisms to be able to act according to due process and legal certainty.

In January, it was reported that a group of US senators called PMA to investigate and de-flag tankers that are violating US sanctions on the Iranian oil trade. 

Citing data from United Against Nuclear Iran (UANI), the letter from the senators to PMA, stated that of the nearly 400 vessels they believe are aiding Iran, the letter reports that nearly half (189) are flagged in Panama.

Photo credit: Luis Gonzalez on Unsplash
Published: 3 October, 2024 

United Kingdom authorities were on the lookout for illegal bunkering or illegal ship-to-ship fuel transfer amongst other activities involving North-Korean flagged vessels from mid to late June, according to the Ministry of Foreign Affairs of Japan on Monday (24 June).

The ministry said the Royal Navy HMS SPEY conducted monitoring and surveillance activities against illicit maritime activities, including ship-to-ship transfers with North Korean-flagged vessels prohibited by the United Nations Security Council resolutions (UNSCRs), in waters surrounding Japan. 

It was the twelfth time for the UK Royal Navy vessel to engage in such activities to take place since 2018.

“Japan welcomes these activities from the viewpoint of ensuring effective implementation of the relevant UNSCRs in solidarity with the international community toward the realisation of North Korea’s dismantlement of all weapons of mass destruction and ballistic missiles of all ranges in a complete, verifiable, and irreversible manner,” the ministry said. 

As Japan has also been conducting information gathering activities for vessels suspected of violating the UNSCRs, the ministry added that Japan works closely with relevant countries and international organisations, including the United Kingdom.

Photo credit: UK Ministry of Defence
Published: 25 June, 2024

Greece’s Navy on Wednesday (8 May) reportedly extended an advisory to prevent ship-to-ship (STS) transfers of Russian oil off the southeastern Peloponnese, miles off its coastline, according to major news outlets. 

The navy will be conducting exercises until 19 May in the Laconian Gulf, an area known to be a meeting point to transfer Russian oil onto other vessels.

It was said to expire on 9 May but was instead extended. 

International sanctions have made trading Russian crude and oil products difficult following Russia’s invasion of Ukraine in 2022. Following that, there have been concerns raised regarding the increased STS transfers at sea, in particular instances of ships using “dark operations” to hide their whereabouts.

Manifold Times previously reported the International Bunker Industry Association (IBIA) stating concerns raised regarding the ‘dark fleet’ or ‘shadow fleet’ at IMO meetings including MEPC 80.

The subject was discussed at the IMO’s Legal Committee (LEG 110) in March, and again at the 80th session of the Marine Environment Protection Committee (MEPC 80) in July.

Multiple concerns have been raised at IMO meetings regarding an increase in ship-to-ship (STS) transfers at sea, in particular instances of ships using “dark operations” to hide their whereabouts. The subject was discussed at the IMO’s Legal Committee (LEG 110) in March, and again at the 80th session of the Marine Environment Protection Committee (MEPC 80) in July.

The risks highlighted include that such practices may be used to circumvent sanctions and high insurance costs. From an environmental perspective, if there is a spill, there will be no pollution prevention and the responsible parties may evade liability under relevant liability and compensation regimes. 

In 2023, IMO also released a statement that LEG 110 was informed that a fleet of between 300 and 600 tankers, primarily comprised of older ships with poor maintenance, unclear ownership and a severe lack of insurance, was currently operated as a ‘dark fleet’ or ‘shadow fleet’ to circumvent sanctions and high insurance costs.

Related: IBIA: ‘Dark fleet’ STS transfers discussed at IMO
Related: IMO: Addressing ship-to-ship oil transfers and tankers in the ‘dark fleet’

Photo credit: Peter Boccia on Unsplash
Published: 9 May 2024