Panama has announced its intention to cancel the registration of 128 ships flying its flag. This action is in response to these vessels being sanctioned by the United States, its allies, or the United Nations, reports Yahoo.
Adapting To Challenges
Ramón Franco, the director of merchant marine at the Panama Maritime Authority, announced that at least 70 tankers have already been removed from Panama’s ship registry, with dozens more to follow. This action is in line with a commitment made last year to penalize vessels that have been blacklisted. Franco estimates that this will result in a revenue loss of up to $2 million.
Speaking at a maritime conference in Singapore, Franco emphasized Panama’s commitment to adapting to industry challenges, including sanctions, stating, “We are 100 years old and counting. 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.”
He explained that merchant ships operate under the flags of various countries, which may not necessarily reflect their ownership. These flag states play a crucial role in maintaining industry safety standards by inspecting and certifying equipment and crew. Panama is a major flag registry, overseeing more than 8,000 ships.
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Source: Yahoo
