Panama, with 202.1 million gt and 7,677 vessels, follows the Marshall Islands Registry that climbed to number two, with 209.4 million gt, and 4,732 vessels while Liberia continues to lead with 314.6 million gt and 6,138 vessels. Clarksons World Fleet Commercial and Merchant report includes vessels over 100 gt.    What, some might interpret as a reduction in tonnage, represents a fresh start, comments Ramon Franco, head of Panama’s Ship Registry.     “At the moment, our priority is to ensure that the vessels in our fleet are the best. If this means being more selective – by refusing to register certain vessels or by cancelling the registration of those whose performance is not up to standard – we will do so.” “Through these measures, taken as part of a move towards a more selective, safer and higher-performing fleet, the Register reaffirms its commitment to pursuing excellence in the service of its clients and the global maritime industry,” he adds.      The Panama Ship Registry has removed a substantial number of vessels from its books to comply with US sanctions and has faced issues with Chinese detentions in a geopolitical spat over port concessions in Panama.    Vessel registration in Panama, is important for law firms and companies representing the Registry. Any changes in Panama’s international position and image affect a sector that provides substantial revenues to the local maritime industry.    “It is a shame to see this decline in the Panamanian Register, although unfortunately it is not entirely surprising,” says a maritime executive who declined to be named. “Clarksons shows that, between the end of 2025 and August 2026, the Panama-flagged fleet fell from 230.5 to 202.1 million gt, a reduction of 12.3%, whilst the Marshall Islands grew by 7.0% to 209.4 million gt and moved into second place. The Bahamas grew by 10.7%, Barbados by 13.6%, and Vanuatu also showed a very significant increase, albeit from a much lower base,” the executive comments.   “The rise in detentions of Panama-flagged vessels in Chinese ports clearly caused concern in the market and coincided with a shift in tonnage towards other flags; according to the information we have seen within the industry, the Marshall Islands have been one of the main beneficiaries, but not the only one.”   The executive continues: “Rather than focusing solely on the loss of a position in the ranking, I believe Panama needs to understand precisely what tonnage it is losing, why it is leaving, and what other registers are offering that is currently more attractive to shipowners. The scale and recognition of the Panama flag remain enormous advantages, but competition between registers is increasingly centred on fleet quality, technical capability, customer service, risk management and the prevention of Port State Control issues. That analysis should be the starting point for a strategy to retain and recover high-quality tonnage.”    Flor Torrijos, a maritime lawyer and executive director of InterMaritime Group agrees that “the Panama Maritime Authority must improve its customer service and listen more closely to the needs of its users. It must be an institution that applies international regulations rigorously while providing efficient, responsive and practical support. This is the only way Panama can regain the trust and confidence of shipowners worldwide.”

According to the Panama Ship Registry, “it has been implementing a rigorous policy prioritising quality over quantity, with new vessels and young fleets, to ensure more efficient and sustainable vessels, by strengthening the fleet performance monitoring programme and actively removing non-compliant vessels -those with poor performance or subject to sanctions-…Cancellations, at the request of the parties concerned, were also recorded, a standard administrative procedure within the Registry’s day-to-day operations.”    “ However, during certain months of 2026, there was an increase in such requests, coinciding with a rise in detentions at certain ports. Consequently, inspections were stepped up on vessels classified as ‘high risk’ by their flag state, a segment accounting for a significant proportion of the cancellations processed. This action demonstrates the country’s commitment as a responsible state that prioritises maritime safety over gross traffic volume,” said the Panama Ship Registry.