Shipping 2026

PANAMA Law and Practice Contributed by: Nadya Price and Joaquín De Obarrio, Patton Moreno & Asvat

4.4 Misdeclaration of Cargo The Maritime Commerce Law states that a carrier can establish a claim against the shipper for misdeclara - tion of cargo if the goods are not properly packed or accurately described. The carrier will be indemnified on any loss resulting from poor packaging or inaccu - racies in the information. 4.5 Time Bar for Filing Claims for Damaged or Lost Cargo As established by Panama’s Code of Commerce, actions derived from land or sea transport contracts, or charterparty contracts, have a one-year time bar. Actions derived from liability in tort also have a one- year time bar, established by Panama’s Civil Code. The one-year term will run from the date of the dam - age or the date of delivery of the cargo. This time limit cannot be extended or sustained. 5. Maritime Liens and Ship Arrests 5.1 Ship Arrests Panama has not adopted any international conven - tions regarding the arrest of vessels. This matter is covered by Law 8 of 1982, as amended. 5.2 Maritime Liens Maritime liens are set forth in the Maritime Commerce Law, and are listed as liens against the vessel, the freight and the cargo. The following liens will have privilege over the vessel and will concur on its price in the following order: • any judicial costs caused in the common interest of the maritime creditors; • any expenses, compensation and salaries for assistance and salvage; • any salaries, remuneration and compensation due to the captain and crew; • the naval mortgage; • any credits in favour of the Panamanian state for fees and taxes; • any salaries and stipends due to stevedores and dock workers hired directly by the owner, operator or captain of the vessel to load or unload it;

Panama adopted the 2014 and 2016 Amendments to the Maritime Labour Convention, 2006 through Reso - lution ADM-075-2019 of 9 May 2019, and the Conven - tion’s 2018 Amendments by way of Resolution ADM 095-2020 of 27 July 2020. In February 2023, by means of Resolution ADM-038- 2023 (which entered into force on 23 December 2024), Panama adopted the 2022 Amendments to the Mari - time Labour Convention, 2006. In addition, by Law No 4 of 15 May 1992, Panama approved the International Convention on Stand - ards of Training, Certification and Watchkeeping for Seafarers, 1978 (the “1978 STCW Convention”), as amended, and, through Resolution ADM 148-2011 of 18 November 2011, adopted the 2010 Manila Amend - ments to the 1978 STCW Convention and its Training Code. Panama has not adopted any international conven - tions concerning bills of lading. However, the Maritime Commerce Law (see 1.3 Domestic Legislation Appli- cable to Ship Registration ), which covers carriage by sea and bills of lading, adopts into domestic legisla - tion provisions based on the Hague-Visby Rules. 4.2 Title to Sue on a Bill of Lading Any party deemed affected may sue on a bill of lading. In particular, the Maritime Commerce Law provides that both the shipper and the carrier or effective carrier may be liable under a bill of lading. A title to sue may be assigned to a third party and recognised by the courts upon compliance with the legal formalities required for such transfer. 4.3 Ship-Owners’ Liability and Limitation of Liability for Cargo Damages The Maritime Commerce Law imposes liability for damages on the vessel in rem, regardless of the party in control. 4. Cargo Claims 4.1 Bills of Lading

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