SETTEMBRE 2022 PAG. 18 - Following up on strategies

 

The Panama Ship Registry has grown in tonnage by 9.6%, adding 20.4M GT between July 2019 and July 2022, with a total tonnage of 239.4M GT. The Panamanian fleet is composed of 8,587 vessels at July 2022, according to IHS Markit. 

In the present year alone, as of July 31, the flag grew by 1.39% and 3.9M GT, and maintained a 27% retention in its fleet, as claim by the Panama Maritime Authority (AMP) statistics, which represents a significant improvement to the retention percentage of 10% at end-2021 as well as the decrease of 9.3%, during the same period, of cancellations by transfer which occur by decision of the shipowner or the company operating the vessel, and are transferred to other registries.

At the beginning of the AMP new administration in July 2019, the ship registry presented a growth in negative numbers (- 2.7%), in accordance to Clarkson’s Research, which required an immediate change of strategy since the statistics were not encouraging. But almost a year later, in May 2020, the Registry started to show positive numbers, finishing the year with a 3.9% growth and an increase of 10.4M GT.

The new administration has continuously analyzed the world maritime industry and monitored the statistics of the Panamanian Registry and its competitors’ registries. This research has taken time to find and understand the needs of each market.

The international competitiveness, the dynamic and changing nature of the international maritime sector and the business of the Panamanian State in relation to the Panama Ship Registry require a country strategy that must be based on clear and transparent legislation contributing to the sustainable growth of the activity.

The Ship Registry (under the Directorate General of Merchant Marine) established a series of performance indicators in the operational processes to measure the service efficiency and quality, and its productivity. To date and for 2020, the goal of net growth in GT, has been met by 68%, and the goal of gross growth in ships and gross growth in GT have been met at 100%. 

The AMP has made a priority to revise and update the Law 57, one of the legal frameworks on which the administration of the Panamanian fleet is based, a process that began in 2020 and which continue, with meetings with the Panama Maritime Law Association (PMLA-APADEMAR).  

Additionally, they have not only worked on these revisions and changes in the General Merchant Marine Law but have also worked in the General Directorate of Merchant Marine, the General Directorate of Seafarers, and the General Directorate of Public Registry of Ship Ownership, the 3 Directorates that make up the Panamanian Ship Registry that work together to increase the competitiveness of the Panamanian flag.

These figures respond to the administration’s implementation of strategies based on four fundamental pillars: process reengineering, technological innovation, international compliance, and improvement in service oriented to customers and their satisfaction. 

The improvement in fleet compliance, the purging of the registry, due diligence, the promotion of the Registry through specialized media, personalized attention, investment in technology and the search for new benefits and incentives for clients are part of the actions and strategies established and implemented.

The search for international competitiveness remains on the agenda of the national merchant marine. 

On the other hand, the agreement between the government of the Republic of Panama and the government of the People’s Republic of China on Maritime Transportation had been renewed and offers important advantages to Panama-flagged vessels. The Business Intelligence Department was also created to strengthen the understanding of the shipping business.

For this year 2022, it is proposed to have a complete revision and an updated standard that provides answers to the Registry’s clients that adjusts to the international market making possible to compete on equal terms with other non-state registries that offer innovative options to vessels owners. 

A series of meetings has begun to modify the Merchant Marine Law 57 of August 6, 2008, as part of the strategies aimed at maintaining its leadership held since 1993 and improving its competitiveness. 

This strategy contemplates an aggressive and broad international marketing plan, creation of new departments, reassignment of functions to existing departments or sections, adoption of new technologies, among others, in addition to the reengineering and reorientation of the Registry.

At the same time, the Directorate General of Merchant Marine has also introduced measures for strengthening the flag inspection program, with emphasis on vessels calling at US ports eligible for a US Coast Guard’s Port State Inspection (PSC), and improving control and compliance rate of the fleet.

The measures will ensure compliance with safety, security, and environmental standards by encouraging and promoting a better maritime industry. In addition, the Registry is increasing monitoring of vessels with deficiencies and detentions through the regional Port State Control regimes. 

The AMP has also reinforced some mechanisms to improve the fleet performance   

in the different regions supervised by the Port State control:

• Directorate General of Merchant Marine Resolution No.106-183 of August 03, 2020, which strengthen measures that will detect and act against vessels detained multiple times, so that they for improving their conditions, performance and mitigate the recurrence of detentions, and impose sanctions to Recognized Organizations (RO) and / or ships, who which have shown serious faults affecting the image of the Panamanian registry.

• A flag inspection mechanism for vessels arriving at U.S. ports, based on risk factor.

• Pre-arrival checklist for Australian ports, to assist ship owners, operators, technical managers, designated persons ashore (DPA) and masters of vessels, in finding weak elements that may result in detention, through Port State Control Inspections by the Australian Maritime Safety Authority.

• Annual Flag Safety Inspection for Priority 1 vessels in Paris inspection and screening scheme for Paris MOUs arriving at any port in Italy.

• Flag Safety Inspection for vessels operating in Paris MoU; it is established that all Panama-flagged vessels over 20 years of age arriving at any port of the signatory countries of this MoU, will be subject to a flag safety inspection (ASI) every six (6) months.

Currently, the Panamanian fleet performance is 96% which should improve with the implementation of these actions expected to reduce detentions and optimize the Registry performance in the various MoUs to which Panama is a party.

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