Panama Tightens STS Rules to Combat Shadow Fleet Activity

The Panama Maritime Authority has introduced stricter regulations for ship-to-ship (STS) oil transfers involving Panama-flagged tankers, aiming to curb the operations of vessels linked to the so-called shadow fleet.

Under the new rules, now in effect, all Panama-registered ships of 150 gross tons or more are required to notify the flag state a minimum of 48 hours before conducting any STS transfer. This notification must include comprehensive technical, logistical, and operational details. Additionally, ships must revise their existing STS operation plans to incorporate the new reporting requirement and maintain an electronic confirmation of receipt onboard.

“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,” said a senior official from the Panama Maritime Authority.

Panama has faced mounting criticism for the high number of shadow fleet vessels flying its flag. In response, the country has moved to deregister several of these ships, signaling a more aggressive approach to enforcing maritime standards and international compliance.