Panama flag goes on the offensive with incentives

The Panama Maritime Authority’s Directorate of Merchant Marine that oversees the world largest ship registry has published a series of new incentives aiming at increasing tonnage, reducing the age of the fleet and seeing off competition from other registries willing to offer lower fees to switch to their flags.

The first resolution (106-65-DGMM, September 17, 2014), cancels registration fees, annual consular fees, investigation and inspection fees, and the 0.03% tax, for one year to all vessels and MODUs under construction and new build over 10,000 dwt.

All ships of new construction less than 10,000 dwt, will receive a discount in their year of registration of 35 % in the rate of registration and consular annual rate, as well as an additional 15% if they certify that they belong an important economic group.
The second resolution (106-66-DGMM- of September 17, 2014) cancels the similar for two years (registration fees, annual consular fee, investigation and inspection fees plus the 0.03% tax) per dwt tonne, for all vessels, over 10,000 dwt and MODUS that have left and want to return to Panama Registry, They will have to stay Panama-flagged]=  for the next five years.
The latest date to apply for these discounts and registration of ships is 31 December, 2015.

“We are making good our promises to offer better conditions for registering in Panama. Those incentives reward fidelity and are adapted to conditions of the shipping industry of today,” Fernando Solorzano, head of the Panama Registry told Seatrade Global.

Solorzano said the Register will soon designate a “customers’ ombusman” who will give immediate response-aiming at cutting red tape- to ship owners in need of help with regards to proceedings.As of 30 June 2014, Panama registered 220.09m gt, up from 218.27m gt at the end of 2013 which was the only year the flag tonnage had decreased from 220.44m gt at 31 December 2012.

Posted 29 September 2014

© Copyright 2019 Seatrade Informa Markets. Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Seatrade Informa Markets.

Related Topics

Michele Labrut

Author Bio ▼

Americas Correspondent, Seatrade Maritime News Seatrade correspondent Michele Labrut has continuously covered the maritime sector of Central & Latin America since moving to Panama City in the 1980s. Author of Seatrade's annual Panama Maritime Review and of several books, Michele also writes for Time magazine and the Economist Intelligence Unit. In 2012 she was awarded the Order of Merit (Knight grade) by the French Government for her services to international journalism.

Sign up to get the latest Maritime News headlines emailed directly to your inbox