Panama aims to hinder illegal ship-to-ship transfers
Af Panama’s maritime authority (PMA) is tightening requirements for ship-to-ship transfers (STS) through a new resolution, in an effort to close the loopholes that allow vessels to circumvent sanctions and environmental regulations.
According to a press release from the Panama Maritime Authority (PMA), all Panama-flagged vessels over 150 gross tons must now notify the authority at least 48 hours prior to an STS operation and provide detailed information about the identity, coordinates, and cargo of the participating vessels.
- This regulation strengthens Panama’s role as a flag state committed to maritime safety, transparency, and the prevention of fraudulent use of its registry, in accordance with IMO rules and the MARPOL Convention, stated Rina Berrocal, acting director of the Directorate General of the Merchant Marine under the PMA.
The new rules are aimed at curbing oil transfers between so-called shadow vessels, which are characterized by obscured ownership and insurance arrangements and involvement in the illegal transport of undeclared or sanctioned crude oil.
This tightening comes after the PMA, in March 2025, took action against 125 sanctioned vessels in the country’s ship registry. 107 of the vessels were immediately deregistered, while 18 were put under review for possible deregistration.
At the same time, Panama has granted the PMA the authority to unilaterally cancel the registration of ships, individuals, and shipowners listed on sanctions lists issued by the US, EU, and UK.
These measures reflect increasing international pressure on Panama, especially from the US sanctions authority, OFAC, to help prevent the country’s ship registry from being used to evade sanctions, particularly in relation to Russian and Iranian oil trade.
OFAC has identified several Panama-flagged ships as part of the so-called “shadow fleet,” and Panama has accordingly removed vessels from its registry that appear on the sanctions lists.
Ship-to-Ship Transfer (STS)
- Ship-to-ship (STS) transfer is the primary term used for the transfer of crude oil, oil products, liquid chemicals, and gas between seagoing tankers.
- The STS operation can be carried out at sea, either with both vessels underway or with one vessel moored alongside another.
- Operations are sometimes conducted in port under the jurisdiction of a port authority, with one vessel moored to a shore installation and one or more vessels moored alongside.
- STS transfers involving oil tankers of 150 gross tons or more have been regulated since 2011 by the IMO's MARPOL Convention, which requires the vessels to have an approved STS operations plan from their flag state.
Source: Skuld
