Recently, to implement the Panama flag’s “optimize fleet structure” policy, enhance operational performance, and reduce port detention risks, the Panama Maritime Authority has explicitly stated that Panama will no longer accept registration applications for oil tankers and bulk carriers over 15 years old.
According to the announcement, this policy applies to vessels newly applying for Panama flag registration or those already registered undergoing a change of ownership/charterer. If a vessel is already registered under Panama, exemptions apply only for name changes or operator company changes.
Panama calls on all relevant parties to continuously conduct due diligence and risk assessments during operations, prevent maritime accidents, protect marine ecosystems, ensure crew working conditions, and avoid illegal activities inconsistent with Panama’s policies to ensure the flag state’s commitments are effectively implemented.
Industry insiders indicate that this move by Panama is a direct response to the rapid increase in the number of aging vessels in recent years and the safety, environmental, and compliance challenges posed by older ships in operation.
According to a previous report by shipbroker Xclusiv Shipbrokers, as of January 2025, the global bulk carrier fleet (≥10,000 DWT) totaled 14,109 vessels, of which 1,856 were over 21 years old, accounting for 13% of the fleet—a 12% increase compared to the same period in 2024. The number of vessels aged 16-20 years was 2,269, making up 16% of the fleet, a 29% year-on-year increase. In contrast, the number of modern vessels (0-5 years old) showed no significant change.
For the tanker fleet, the global total (≥10,000 DWT) was 7,674 vessels, with 1,401 over 21 years old, accounting for 18% of the fleet—a 12% year-on-year increase. The number of tankers aged 16-20 years was 2,232, representing 29% of the fleet, a 13% increase compared to January 2024.
DNV’s latest report, *Maritime Safety Trends 2014-2024: Addressing Future Risks*, highlights fleet aging and mechanical equipment damage/failure as primary causes. Between 2018 and 2024, global maritime accidents surged by 42%, while the global fleet size grew by only 10%.
The study, based on annual data from Lloyd’s List Intelligence, recorded over 2,200 accidents annually since 2021. Mechanical equipment damage/failure was the leading cause of accidents in all years, accounting for 60% in 2024 (a significant rise from 38% a decade ago). The data clearly shows the correlation between vessel age and operational reliability—the proportion of accidents involving vessels over 25 years old increased from 32% in 2014 to 41%. In 2024, mechanical equipment incidents across all age groups rose by 20% overall.
As a classification society authorized by the Panamanian government, OMCS Classification (Shanghai) Co., Ltd. (“OMCS CLASS”) issued a special notice reminding shipowners to pay attention to the latest changes in Panama’s flag administration policies: For secondhand oil tankers and bulk carriers intended for new purchase, vessel age should be verified immediately. For already registered older vessels, changes in ownership or charterer may trigger reassessment and potential deregistration risks. To ensure continuous compliant operations of vessel assets, it recommends that relevant shipowners evaluate alternative white-listed flag registration options early to mitigate potential policy impacts.
Wang Youping, General Manager of OMCS Classification (Shanghai) Co., Ltd., stated: “This new regulation may directly impact the market value of bulk carriers and oil tankers over 15 years old. With increasing Port State Control (PSC) scrutiny, many flag states are tightening management and requirements for older vessels. Whether it’s pre-arrival inspections, annual safety checks, or age restrictions, the fundamental goal of these measures is to improve the overall technical condition of fleets, reduce port state detention risks, and enhance the flag state’s performance across port inspection regimes.”
“In the future, for older vessels engaged in international trade, regulatory pressures from flag states, classification societies, and port states will continue to intensify. For shipowners and ship management companies, conducting regular necessary maintenance and comprehensive self-inspections, as well as staying updated and responsive to flag state technical and regulatory requirements, will be key measures to ensure compliant operations and mitigate operational risks.
