• Panama will impose disciplinary action against oil tankers flying its flag intercepted by United States for violating maritime regulations
• Move follows US Coast Guard seizure of two vessels in December as part of intensified crackdown on Venezuela’s shadow fleet
• Foreign Minister Javier Martínez-Acha says vessels disconnected tracking devices and altered names while navigating out of Venezuelan waters

PANAMA CITY (TDR) — Panama announced Friday it will impose disciplinary action against oil tankers flying its flag that were intercepted by the United States for violating maritime regulations while transporting Venezuelan crude in breach of international sanctions.

The move follows the US Coast Guard‘s seizure of two vessels in December as part of an intensified crackdown on Venezuela‘s so-called shadow fleet. Foreign Minister Javier Martínez-Acha said the vessels did not respect the country’s maritime rules and disconnected their transponders while navigating out of Venezuelan waters.

Panama Maritime Authority Considering De-Flagging

The Government of Panama will take disciplinary action against several oil tankers registered under its flag targeted by the United States for alleged irregularities, Martínez-Acha announced Friday. These vessels failed to respect Panamanian maritime legislation, he explained.

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The initiative was launched by the administration of President José Raúl Mulino following the US interception of the supertanker Centuries in the Caribbean. The ship is suspected of transporting Venezuelan crude in violation of international sanctions.

Preliminary investigations by Panamanian authorities revealed that the Centuries and other vessels utilized classic shadow fleet maneuvers to evade detection. Detected irregularities include the deliberate deactivation of satellite tracking systems known as transponders, recent and frequent name changes to the hull, and inconsistencies in documentation.

“The vessels under suspicion disconnected the tracking device, this is a serious warning sign. The vessels under suspicion had a name change, which is another warning sign.”

As a direct consequence of these violations, the Panama Maritime Authority is considering the cancellation of naval registration for the offending ships. De-flagging is the most severe administrative sanction Panama can impose, effectively stripping a vessel of its legal right to sail and making it a pariah in international ports.

US Coast Guard Seized Two Vessels in December

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On Saturday, the US Coast Guard, in a joint operation with the Department of Defense, seized an oil tanker last docked in Venezuela. The US Coast Guard identified the tanker as the Panama-flagged Centuries, and suggested it was bound for Asia, presumptively towards China.

The vessel was carrying approximately 1.8 million barrels of Venezuelan crude oil, according to maritime tracking data. Unlike the first vessel seized this month, the Centuries was not on the US sanctions lists at the time of seizure, marking a significant escalation in the Trump administration’s enforcement actions.

Similarly, reports published on Sunday indicated that the US Coast Guard is actively in pursuit of the Bella 1 Panama-flagged oil tanker sanctioned by the United States in 2024 due to its links to a Hezbollah-linked network and Iran’s Revolutionary Guard Corps.

Trump Administration Announces Venezuela Blockade

The case of the Centuries is part of a broader US offensive against clandestine oil shipments. The US Coast Guard has intensified operations in the Caribbean, targeting a network of ships that sustain the trade of sanctioned crude from Venezuela, Iran and Russia.

President Donald Trump announced last week a blockade of all sanctioned oil tankers entering or leaving Venezuela as part of his maximum pressure campaign on the socialist Maduro regime. Trump has demanded that Venezuela return assets that it seized from US oil companies years ago, justifying the administration’s newest tactic in a pressure campaign against Nicolás Maduro.

Homeland Security Secretary Kristi Noem confirmed the seizures in social media posts, stating that the United States will continue to pursue the illicit movement of sanctioned oil that is used to fund narco terrorism in the region.

“We will find you, and we will stop you.”

Panama Maintains Registry Transparency Standards

Panama will act to ensure its registry—one of the largest in the world—maintains transparency standards, Martínez-Acha stated, emphasizing that his country would not allow its flag to be linked to opaque energy trade networks.

The foreign minister, speaking to local reporters on Monday, detailed that the country’s authorities detected several irregularities and violations of both national and international maritime regulations committed by the two Panamanian-flagged vessels. Some of the irregularities detected include the deliberate disconnection of tracking devices, name changes and discrepancies in crew records—all of which constitute red flags under international maritime law.

A country that provides its flag to a vessel in its official registry can cancel the ship’s registration if an investigation determines it did not follow maritime rules. The Panama Canal authority has become increasingly sensitive to maintaining its international reputation amid Trump administration criticism of Chinese influence over canal operations.

Venezuela Oil Loading Operations Slow After Seizures

Tanker loading in Venezuela dwindled following US action against the ships, with most vessels moving oil cargoes only between domestic ports, according to tracking data and sources. Some tankers approaching Venezuela’s coast have made U-turns or suspended navigation until instructions from owners are clarified.

The number of loaded tankers that have not departed has increased in recent days, leaving millions of barrels of Venezuelan oil stuck in ships, while customers demand deeper discounts and contract changes to take risky voyages beyond the country’s waters.

Will Panama’s disciplinary action against shadow fleet vessels effectively restore transparency to its maritime registry, or will oil smugglers simply shift to other flags of convenience?

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