Panama's ship registration is experiencing significant changes due to the strict measures stemming from U.S. sanctions and China's retaliatory responses. Panama's gross tonnage has reached 202.1 million (GT), and the country has now fallen to third place in the international ranking.
Panama's Fall in Global Ranking
For decades, Panama held the top position in ship registration worldwide, but with the registration of 7,677 vessels, it is now under significant pressure compared to the Marshall Islands and Liberia, which are ranked second and first, respectively. The Marshall Islands have 209.4 million GT and 4,732 vessels, while Liberia, with 314.6 million GT, is increasing its market share through 6,138 ships.
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Roots of Changes and Economic Consequences
The roots of this transformation in the shipping market trace back to the disputes between the United States and China. The Panama Ship Registry, in order to align with the U.S. sanctions regime, has been forced to cancel registrations and remove a significant number of oil tankers and vessels accused of circumventing sanctions. In contrast, geopolitical tensions between Beijing and Panama have led to the seizure of Panama-flagged vessels in Chinese ports.
This situation has raised concerns among shipping companies and has pushed ship owners towards registering vessels with competing authorities. Additionally, the loss of market share to Liberia and the Marshall Islands will have tangible economic consequences for Panama's economy.
Despite this decline in statistics, Panamanian officials are attempting to present these changes as a targeted approach to secure their fleet. Ramon Franco, head of the Panama Ship Registry, has emphasized that their current priority is ensuring the quality of vessels, and if necessary, stricter measures will be applied to vessel registrations.
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