spot_imgspot_img
Sunday, November 3, 2024

COMPETITION BETWEEN PANAMA AND LIBERIA TO BE THE LARGEST FLAG STATE

Date:

Panama and Liberia are vying for the title of the largest flag state for their registries. Based on one measurement, Liberia appeared to have possibly pulled ahead in the competition, while another measurement shows them tied or Panama maintaining its 20 years as the largest registry by a small lead. As the competition intensifies, both flag states are taking steps to enhance their position and to reflect the new challenges emerging for shipowners.

Clarkson Research released its market analysis in July and for the first time, it appeared that Liberia had edged ahead on the measure of total gross tonnage in the registry. While both flags were shown to have a 16 percent market share, Clarkson calculated that Liberia was nearly one percent ahead in gross tonnage at 246.5 million tons. Liberia however remained behind in the number of ships at just over 5,000 to Panama’s more than 8,200 vessels in its registry.

Panama acknowledged the number which received wide coverage in the media while noting as part of its modernization effort it was undertaking a long-deferred purging of the registry. They said targeting delinquent ships or ones in violation of international standards, 216 ships had been removed from the registry since 2021 and highlighted an initiative focusing on fishing vessels that has removed 182 vessels representing nearly 500,000 tons. Another 97 fishing vessels representing nearly 60,000 gross tons are also in the process of cancelation. This is in addition to 6.5 million gross tons that were canceled for issues related to Iran, North Korea, or vessels included on the list of international sanctions.

IHS Markit however has now released its market calculations. They are showing that Panama remains ahead at 249.8 million gross tons. Again, it is a difference of just one percent in the total tonnage in the two registries.

“We certainly have set sights on becoming the largest commercial shipping registry in the very near future,” confirms Liberian International Ship & Corporate Registry which administers the flag while noting, “but more importantly, our team is working diligently with our partners to be recognized as a top flag.”

The data shows that Liberia’s ship registry grew nearly six percent in gross tonnage in 2023. Panama also highlights that it added 5.9 million tons in the first half of 2023, which is more than two percent net of the purging. Critically for Panama, it includes 4 million gross tons, or 152 new ships this year, and over 1,500 new ships representing 50 million gross tons over the last four years. Panama’s legacy fleet means its average is older, calculated by Clarkson at over 19 years to under 13 years for the Liberian flag.

Panama cited the age of its fleet as one contributor to why the Paris MoU lowered the flag to its grey list recently. The AMP which administers Panama’s registry said 104 of the 374 ships the MoU reported as detained were over the age of 30 and that 35 vessels were over 40 years old. The larger number of ships in the registry they noted also means that there is a higher total number of inspections of Panama ships.

Over the past four years, the AMP highlights that they have focused on modernizing the registry. They have been working with government officials to simplify the administration, highlighting that they achieved their best retention rate and cancelation ratio as they continue to agree on steps with the government for the future of the registry. The new administration in Panama has been working to reverse a trend they identified in 2020 that showed that if immediate actions were not taken, Panama would lose market leadership at the end of 2022.

Liberia has also released a series of new laws and procedural improvements. They note the impact on actions such as mortgage recording while also lowering costs.

Both flag regimes are investing in their systems highlighting the introduction of a broad range of new technology and processes to help shipowners address the coming changes in regulations primarily aimed at emissions and the environment as well as the renewed focus on inspections and compliance by regulators after the interruptions caused by the pandemic. The current geopolitical environment is also challenging the flags with both reporting that they have increased their vetting process and they have an information sharing agreement to identify ships leaving one registry that are seeking to transfer flags.

The competition between Panama and Liberia will continue with the two flags remaining dramatically ahead of other flag states. The Marshall Islands is third with a 12 percent market share. The shifts in the size of the registry between flag stats will likely continue to reflect broader changes in the industry. China has passed Greece as the country with the largest ship ownership, based on the gross tonnage, and the next few years are likely to see older ships replaced by newbuilds as operators seek greater efficiency and lower emissions to meet the industry’s new standards such as the IMO’s CII and EEXI which became effective this year. Courtesy: maritime-executive.com

smartnews
Smart News Liberia is an online news outlet and a product of Smart Media Group Inc. Our website, smartnewsliberia.com, covers a broad spectrum of news content. For inquiries or information, you can reach us at 0777425285 or 0886946925, or email us at smartnewsliberia@gmail.com or info@smartnewsliberia.com.

LATEST DEVELOPMENT

A MILESTONE FOR LIBERIA’S HIGHER EDUCATION, BUT CHALLENGES REMAIN

The launch of Liberia’s first doctoral programs at the...

BOAKAI’S MISPLACED AMBITIONS AS LIBERIA BLEEDS AND THE PRESIDENT COURTS GLOBAL VANITY

Eight months into his presidency, Joseph Boakai’s administration is...

TAKE IMMEDIATE PRECAUTIONS TO PREVENT THE SPREAD OF MPOX – STAY ALERT, STAY PROTECTED

As Liberia confronts the resurgence of Mpox, the confirmation...

NO JUSTIFICATION FOR HIGH SALARIES OF BOAKAI ADMINISTRATION OFFICIALS AMID ECONOMIC STRUGGLES

In the midst of Liberia's current economic struggles, revelations...

COMMENTARY

THE MASS DISMISSAL OF LIBERIAN PUBLIC SERVANTS: A TROUBLING TREND UNDER THE BOAKAI ADMINISTRATION

A Commentary by Wondah L. Jah Since assuming the presidency,...

SECURITY RISKS: IS PRESIDENT BOAKAI UNKNOWINGLY SETTING THE STAGE FOR EARLY COUP D’ÉTAT?

In his commentary, Liberian political analyst Vandalerk R. Patricks...

IS JOSEPH BOAKAI LISTENING TO PROTESTS AROUND AFRICA?

A Commentary By Wondah L. Jah In January, Joseph Boakai,...

LATEST NEWS

LIBERIA: EFFL TAKES PRESIDENT WEAH TO COURT OVER CODE OF CONDUCT “VIOLATION”

By Olando Testimony Zeongar MONROVIA - The Economic Freedom Fighters...

TRAGIC ACCIDENT INVOLVING PRESIDENTIAL MOTORCADE ON ROBERTFIELD HIGHWAY RESULTS IN FATALITIES

LIBERIA - In a devastating accident today, the presidential...

US ENVOY MCCARTHY WARNS AGAINST REPEAT OF POLITICAL DISRUPTION OF CHURCH SERVICE; TERMS IT “NONSENSE” 

By Olando Testimony Zeongar MONROVIA - United States ambassador accredited...

Share post:

EXCLUSIVE INTERVIEW

OPINION

LIBERIANS ARE IN AN ABUSIVE RELATIONSHIP WITH THE UP AND CDC

  An Opinion By Grace RK Guar Every six...

AMERICA’S NEGLECT OF LIBERIA: A CALL FOR CHANGE

An Opinion By Bishop Dr. Rudolph Q. Kwanue, Sr A...

AMID AN UNENDING WAR AGAINST POVERTY, INJUSTICES – HAS THE PROGRESSIVE STRUGGLE BECOME LOST IN TRANSLATION?

A Patriot's Diary With Ekena Wesley What manner of Liberian progressives...

HAS PRESIDENT BOAKAI’S GOVERNMENT BEGUN BEARING GOOD FRUITS? (PART1)

By Jacob N.B. Parley Following a careful reflection, I have...

ELEVATING THE AG BIBLE COLLEGE TO A UNIVERSITY: A MILESTONE ACHIEVEMENT

By Jacob N.B. Parley After many years of successful preaching...

THE GALLERY

spot_imgspot_img

MORE ARTICLES

spot_imgspot_img

MORE NEWS

LATEST DEVELOPMENT NEWS

LATEST CRIME NEWS

Share via
Copy link