US Sanctions Tighten - Panama Registry Set To Remove 128 Ships -

(MENAFN- Newsroom Panama) 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. 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.

Cargo ships wait in the Anchor Zone to cross the Panama Canal from the Pacific Entrance near Panama City.

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. Tightening curbs on Russia's and Iran's oil and energy industries have increased scrutiny on the operations of the so-called“dark fleet” - the old and often uninsured vessels that ferry sanctioned cargoes around the world. Some“shadow” ships have left established registries and turned to those known for lenience, while some have chosen to sail without a flag altogether. Panama's decision to cull 128 vessels also follows changes by the country last October that speed up the process of removing a ship from its registry. Franco said the process now takes between a week to a month to complete, compared to five or six months previously.

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