The world’s second largest flag – after Liberia – is taking decisive action against potential links to the Russian shadow fleet with this decision.
According to the ship registry, the reason for this step is an analysis of data from ship inspections and detentions. It found that seven out of ten ships flying the Panamanian flag that were detained between 2023 and the first half of 2025 were over 15 years old. This applied to bulkers, oil tankers and freighters.
“By prioritizing quality over quantity and introducing stricter control mechanisms, it will ensure that the Panamanian fleet complies with the strictest international regulations, contributing to a safer and more sustainable industry,” reads a statement from the registry.
The Panamanian flag accounts for around 14% of the world fleet, putting it in second place behind Liberia (16%). However, the average age of the ships in Panama’s register is very high at 19.4 years, while Liberia (12.8 years) and the Marshall Islands in third place (11.4 years) have comparatively “young” fleets.
Due to this aging fleet, Panama has recently come under criticism more frequently and has implemented targeted measures against suspected ships in the shadow fleet flying its flag. Since 2019, 650 ships have already been flagged out.
By the end of 2024, the number of ships affected by sanctions exceeded the 1,000 mark for the first time. The EU recently imposed further measures to tackle the Russian shadow fleet, which continues to transport oil and gas from Russia to the global market. According to market reports, 800 of these 1,000 ships are uninsured, and their average age of 21 years is also eight years above the global average.
