Shipping 2026

PANAMA Trends and Developments Contributed by: Belisario Porras, Patton Moreno & Asvat

• Colon Container Terminal (CCT) with 8.3% and 1.34 million TEUs; • Balboa with 2.5% and 2.22 million TEUs; • SSA Marine MIT with 1.2% and 2.33 million TEUs; and • PSA Panama with 0.4% and 1.14 million TEUs. Present Trends and Developments The Panama Ship Registry In 2025, the Panama Maritime Authority (PMA) focused its administration on upgrading the quality of the fleet rather than increasing the quantity thereof, as was the policy of previous administrations. At present, the PMA is concentrating its efforts on the following aspects: • focusing on a safer fleet and significant accident reduction; • implementing 100% digital, streamlined processes; • transforming into a younger fleet, with active poli - cies to phase out high-risk vessels; • applying rigorous inspections and enhanced pre- checks to ensure that only compliant ships fly Panama’s flag; and • winning trust from industry leaders and ship-own - ers, which choose Panama because of its security and reputation in protecting both their investments and cargo. Panama’s shipping registry has also become a pioneer in enforcing, for the first time, a mandatory traceability for ship-to-ship (STS) transfers as part of a strategy to modernise the fleet by gradually phasing out older tonnage, thus aligning with the International Maritime Organization’s (IMO) decarbonisation plans until 2050. In October, the Panama Ship Registry decided to apply an age restriction to oil tankers or bulk carriers that are more than 15 years old. Any vessel above such age will not be able to enroll under the Panamanian flag. The action is aimed at reducing detention risks in port state inspections and reducing the possibility of vessels from the so-called “ghost fleet” or “shadow fleet” entering the Panamanian registry. The PMA has determined that these shadow fleets primarily con - sist of aging oil tankers with ownership structures that are often underinsured and apply unsafe practices to

circumvent international sanctions, particularly those targeting Russian and Iranian oil cargos. In addition to the age restriction, Panama has enact - ed further oversight measures, including mandatory quarterly inspections for problematic vessels and enhanced verification of ship safety management sys - tems, such as pre-check verification processes that all vessels must complete before registering under the Panamanian flag. The application of these new measures seems to be leading to positive results in the form of fewer acci - dents and a 13% increase in new building registra - tions compared with the previous year. According to IHS Markit and based on Clarksons Research’s World Fleet Monitor, as of 25 August 2025, Panama’s Ship Registry included 8,812 vessels total - ling 241.5 million gross tons (GT), representing 14% of the global fleet. Rio Indio During the 2023–2024 period, Panama experienced its worst drought since 1950. In order to avoid the negative effects of future droughts, the ACP has proposed a USD1.6 billion project in the area of Rio Indio in Panama’s Coclé Province, which would dam the nearby Indio River. The project would then drill a five-mile mountain tunnel connecting the newly constructed reservoir to Gatun Lake, which supplies water to the canal. The Supreme Court of Panama reinstated a previ - ous law, which expands the boundaries of the ACP’s watershed to include 1.4 million additional acres along the canal, compared to the 741,316 acres that were managed before such judicial decision was made. Additionally, in support of Panama Canal operations, the Rio Indio project forms a critical component of a public water project programme designed to guaran - tee water availability for more than half of Panama’s population. Construction of the project is expected to take approximately six years, which would make the project one of the most important public investments since the expansion of the Panama Canal locks. The

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