Pariah regimes use shadow fleets to evade sanctions, generate revenue, and by extension, maintain power. In 2022 and 2023, the Islamic Republic of Iran generated more than $100 billion from energy exports. Cutting off the access Iran and other outlaw nations have had to these ships is vital to applying the pressure necessary to effect crucial changes.
Responsible, well run, and reputable ship registries do not want any vessel involved in skirting international norms on their rolls. This is a message I carried to Panama last July and conveyed to the most senior officials of their government.
I commend the Panama Maritime Authority (AMP) for its action de-listing more than 100 vessels sanctioned by the United States and other governments. Approximately 60% of the Iran-linked shadow fleet was previously registered in Panama, but the commendable efforts of AMP have reduced that total to approximately 17%. Panama has shown leadership in responding assertively to information about bad actors plying the ocean under the Panamanian flag.
The vessels purged by the AMP must not find refuge under another flag. Removing ship registries of these unscrupulous actors and all other shadow fleet vessels is an important priority. The lack of urgency and commitment demonstrated by the International Maritime Organization (IMO) toward achieving this goal is puzzling and disappointing. Its inaction in addressing false flagged vessels runs counter to the purposes listed in its mission statement of ‘… promot[ing] safe, secure, environmentally sound, efficient and sustainable shipping through cooperation.’ Shadow fleet vessels undermine each of those objectives and the IMO failure to lead has created a void that must be filled.
The Federal Maritime Commission possesses authorities that can be brought to bear against nations whose laws, regulations, or practices create unfavorable shipping conditions. I have tasked our staff with identifying options on how to address the role flags of convenience play in enabling avoidance of sanctions. Registries hosting outlaw vessels used by reprehensible regimes to facilitate their evasion of international regulations would certainly qualify as conduct warranting the Commission’s attention and action.
Chairman Louis E. Sola is a Commissioner with the U.S. Federal Maritime Commission. The thoughts and comments expressed here are his own and do not necessarily represent the position of the Commission.