Panama removes over 650 ships from registry

Panama's Maritime Authority has removed from its registry more than 650 vessels since 2019 as part of an effort to fulfill US sanctions and enforce stricter rules for the ships it flags, reports Reuters.

A total of 214 vessels have been withdrawn from Panama's registry, among the world's largest with more than 8,500 ships, since it began implementing measures last year allowing it to act faster to help enforce sanctions, the authority added.

Ships cannot sail under Panama's flag once they are removed from its registry.

Panama responded to criticism by non-governmental organization United Against Nuclear Iran (UANI), which last week said Panama had not taken sufficient action against sanction violators and asked it to "immediately cease facilitating Iran's illicit oil trade" and withdraw its flag from all tankers carrying Iranian oil.

According to UANI, nearly one in five vessels suspected of transporting Iranian oil sails under Panama's flag. "This is not just a failure of Panama's registry. It's a direct threat to global sanctions compliance and regional and U.S. security," it said.

Panama in 2019 signed an agreement with other flag countries including Liberia and Marshall Islands to exchange information about vessels whose registrations were canceled or rejected due to potential sanction violations. It also began implementing measures against ships that deliberately turn off their transponders to avoid tracking.

In May, the authority said it would reinforce controls for ship-to-ship operations by Panama-flagged vessels, following an increase in the use of "dark-fleet" tankers to skirt sanctions or evade environmental requirements.

The US has increased pressure on countries with large vessel registries to help enforce sanctions. US President Donald Trump has criticized the expansion of a dark fleet of tankers moving sanctioned oil and threatened to take over the Panama Canal.

 

Importance of Bab el-Mandeb

"Peace with the (Zionist) Jews is in Confrontation, Not in Shaking Hands with Them". This was the title of an article featured on Yemen’s Almaseera website on October 06, just a day before Hamas launched an attack on the southern occupied territories. 

This title serves as a window into Yemen's stance, the ongoing actions of the Ansarullah Movement, and their reaction to Israel’s bloodshed in the Gaza Strip.

On October 31, merely three days following Israel's ground offensive in northern Gaza, Yemen directed a barrage of missiles and drones at the southernmost point of the Israeli-occupied territories, specifically targeting Eilat port.

Following this incident, Yemen made a bold announcement, vowing not to permit Israeli and Israeli-bound vessels safe passage through the Bab el-Mandeb Strait and the Red Sea.

On November 19, Yemenis reported the seizure of the commercial ship Galaxy Leader, diverting its course towards Yemeni shores, marking the beginning of multiple Yemeni attacks on commercial ships en route to Israeli ports.

The international maritime community has been quick to react, with numerous shipping and cargo companies announcing the suspension of transit through the Red Sea due to what they refer to as Ansarullah’s threats.

Looking at the world map, the significance of the Bab el-Mandeb Strait in international maritime transport becomes apparent.

Located between the Red Sea and the Indian Ocean, Bab el-Mandeb stands as one of the most strategic maritime chokepoints worldwide.

After the Strait of Hormuz and Malacca, it is the largest and most pivotal route for oil transportation, with over 6 million barrels of oil, about 4% of the world's total oil flow, passing through daily, mainly bound for Europe. Beyond oil, 30% of the world's natural gas trade traverses this passage.

Passing through this maritime route significantly shortens the shipping routes for vessels circumventing the African continent to reach the Indian Ocean and countries in East and Southeast Asia.

It is a highly desirable and cost-effective route for international shipping and maritime transport companies.

Experts argue that the passage through Bab el-Mandeb reduces transportation costs by at least 15%. Given these considerations, any threat in this strait poses a severe challenge to shipping companies and, consequently, governments.

Increased insurance costs for these shipping companies, coupled with rising oil prices in destination countries and the impact on other commodities in the long term, are undesirable outcomes for any nation.