In a move aligned with the standards of the International Maritime Organization (IMO), Panama has strengthened its requirements for ship-to-ship (STS) oil transfer operations involving tankers registered under its flag. The objective: to shut the door on the so-called “shadow fleet” and reinforce the country’s standing as a responsible flag State.

The Panama Maritime Authority (PMA), through its Directorate General of Merchant Marine (DGMM), issued Resolution No. 106-035-DGMM of 2025 (published in Official Gazette 30271–A on May 6, 2025), which introduces stricter controls and mandatory traceability for offshore STS transfers of hydrocarbons.

“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,” explained DGMM Acting Director, Engineer Rina Berrocal.

Effective immediately, all Panama-flagged vessels with a gross tonnage of 150 or more must notify the Flag State at least 48 hours in advance of any planned STS operation, providing detailed technical, logistical, and operational information.

The mandatory notification must include the following key data:

• Identification details of participating vessels (name, flag, IMO number)
• Coordinates and estimated time of the STS operation
• Type and quantity of hydrocarbons to be transferred
• Transfer method (underway or at anchor)
• Contact information of the Designated Person Ashore (DPA)
• Confirmation of the STS plan in accordance with Regulation 41 of the MARPOL Convention

In addition, vessels must update their STS operational plans to reflect this new notification requirement and retain onboard an electronic acknowledgment of receipt.

“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, in full alignment with IMO regulations and the MARPOL Convention,” Berrocal emphasized.

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