Panama Cracks Down on Shadow Fleet with New STS Transfer Rules

by Ship & Bunker News Team
Thursday May 29, 2025

Panama has imposed stricter controls on ship-to-ship (STS) oil transfers involving its flagged tankers, targeting the shadow fleet – vessels linked to illicit activities.

The move, aligned with IMO standards, aims to boost transparency and prevent misuse of its registry, the Panama Canal Authority said in a statement on its website last week.

The new rules now require all Panama-flagged vessels over 150 GT to notify authorities at least 48 hours before any STS operation.

The notice must include detailed information on the vessels involved, location and time, cargo details, method of transfer, and a MARPOL-compliant STS plan.

"This initiative addresses the growing use of opaque vessels to circumvent international sanctions, transport undeclared crude, or evade environmental safety regulations—practices commonly associated with what is known as the shadow or dark fleet," Engineer Rina Berrocal, Acting Director of the Directorate General of Merchant Marine, said.

Ships must also retain electronic confirmation of notification receipt onboard.

"This new regulation reinforces Panama's role as a flag State committed to maritime safety, operational transparency, and the prevention of fraudulent use of its registry," Berrocal emphasised.

"This is not just about safeguarding the reputation of the Panamanian registry, but about ensuring that our vessels are not used as platforms for illicit activities that undermine global trade and harm the environment."