Panama Deregisters Seven Ships Following US Treasury Sanctions
The Panama Maritime Authority (PMA) has begun removing seven ships from the Panama registry after they were named in new US Treasury sanctions. The authority is based in Panama City and runs the world’s largest ship registry by fleet size.
The sanctions, announced on 21 October 2026, targeted shipping companies, service providers and vessels linked to Iranian commodity exports. The seven Panama-flagged cargo ships were on that list, and three of them reportedly carried Iranian-origin petrochemicals and steel during the past year. In a statement on 22 October, the PMA said it had started cancellation for all seven under Executive Decree No. 512 of 2024. It is also taking action against a Panamanian company named in the sanctions.
The authority has tightened checks before registration too. Applicants must now carry out due diligence on the ship, its registered owner, operator and charterers.
This is part of a wider clean-up of the world’s largest flag. In early October, Panama started cancelling three other sanctioned ships, and six vessels later hit by UK sanctions on Russia’s shadow fleet had already been removed. By April 2025, the decree had been applied to 125 vessels. The PMA describes its policy as “zero tolerance” towards misuse of the Panamanian flag.
Losing a flag can leave a ship without valid certificates, insurance or port access, and crews may be stranded. Before joining, seafarers should check that the vessel’s flag, owner and insurance are genuine and not on a sanctions list.
