Maritime Transportation Security Act and Regulations in Panama

The maritime transportation security act and regulations determine how ships that sail under the Panamanian flag must operate. Their objective rests in protecting human life, safeguarding vessel operation and preserving the aquatic ecosystem. In the country, both the Panama Maritime Authority (AMP) and the General Directorate of the Merchant Marine (DGMM) guarantee compliance with this regime. In this article, we will review the legal framework that supports it, the role of the institutions, the requirements and the penalties for noncompliance.

Understanding the Maritime Transportation Security Act

Law 57 of 2008, which regulates the Merchant Marine, establishes the maritime transportation security act in Panama. It oversees vessel registration and operation, as well as ship inspection and Certification. It also describes AMP and DGMM roles in technical and administrative oversight of the sector.

According to the law, every craft that sails under the Panamanian flag must comply with national rules and with international maritime safety treaties. In this way, the Directorate General of the Merchant Marine inspects each ship to verify that it maintains required equipment and holds up to date Certification. When anyone fails to meet any legal requirement, authorities impose fines and sanctions, and they may suspend the navigation permit, as described later.

The maritime transportation security act and regulations group aspects such as crew training, firefighting, ship stability and emergency communication, and its aim is to allow safe and orderly navigation.

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DGMM & AMP

The Directorate General of the Merchant Marine (DGMM) manages panama vessel registry and controls ship technical documentation. It conducts inspections, reviews reports and keeps contact with organizations recognized by the International Maritime Organization (IMO) that provide verification services. Its role consists of applying the maritime transportation security act and maintaining trust in the Panamanian fleet.

The Panama Maritime Authority (AMP), as central authority, coordinates the whole naval system. It regulates ports, crews, licenses and audits. It issues circulars and resolutions that incorporate IMO guidance and conventions such as SOLAS (Safety of Life at Sea). Moreover, it promotes ongoing training for seafarers.

Panama Canal

Panama Canal ranks among the most monitored points of the local naval network. Therefore, before each transit, vessels must demonstrate compliance with the maritime transportation security act and that they meet the Canal’s own standard.

Panama Canal coordinates with AMP and DGMM, but it applies its own Navigation Regulations. The maritime transportation security act at national level mandates the compulsory use of pilots (expert navigators who guide ships) and tugboats (support craft that push or pull to maneuver).

The inspections, led by the Panama Canal Authority (ACP), verify navigation equipment condition, propulsion machinery, mooring systems and documentation. Inspectors check dimensions (draft, beam and length) for the locks and crew capacity to assist the pilot. Strict compliance plays a fundamental role to prevent incidents on this route that matters for international trade.

International Regulatory Framework

Panama adopts certain international maritime transportation security act rules, such as:

• International Convention for the Safety of Life at Sea (SOLAS): The treaty that sets ship construction and equipment rules.


• International Convention for the Prevention of Pollution from Ships (MARPOL): Aimed at preventing marine pollution, covering waste, hydrocarbons and other harmful substances.


• International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW): It sets minimum competency and Certification standards for crews.


• International Ship and Port Facility Security Code (ISPS): Focused on protection against illegal acts and threats to maritime safety.

Types of Maritime Transport Covered

Panama maritime transportation security act perspectives vary depending on the class of operation. Not all ships face the same requirements, yet every craft must maintain safe conditions according to procedures established by the authority.

Commercial cargo ships

Vessels dedicated to cargo transport must present Certification issued by the Directorate General of the Merchant Marine, which attest seaworthiness, and keep updated records on maintenance, crew and cargo type.

During loading and unloading, personnel follow protocols to prevent fires, spills or structural damage. The Panama Maritime Authority inspectors verify that these operations occur under safe rules and with authorized staff, paying attention to pollution prevention.

The maritime transportation security act also regulates hazardous material handling and cargo protection. In such cases, the Directorate General of the Merchant Marine applies SOLAS directives and IMO technical guides. Additionally, authorities require observance of the ISPS Code to protect the ship and port facilities against unlawful acts.

Passenger transport

Passenger maritime transportation security act and regulations in Panama prioritize safeguarding human life at sea. Normatives cover:

• Survival and structural aspects, which include:


• Lifejackets for every person plus reserve, total capacity of lifeboats or rings and compulsory annual inspection.


• Operational firefighting equipment and SOLAS Certification that require a functional detection system and strict maintenance.


• Navigation allowed only with a National Safety Certificate that validates stability and absence of overloading.


• Operational and legal aspects:


• Obtaining a Sailing Permit constitutes a requirement, and AMP may deny it due to meteorological risk.


• A Civil Liability Policy with minimum coverage for passenger life and health must remain in force.


• Crew must hold certification with specialized training in evacuation and crowd control.


• Port access control and baggage inspection constitute requirements to prevent threats.

Maritime Safety and Security Requirements

Compliance with maritime safety in Panama proves mandatory for every registered craft. Rules cover equipment, environmental management, insurance and technical certification.

Mandatory equipment

Each vessel must contain rescue devices, communication equipment, emergency lights and alarm systems. The maritime transportation security act and regulations prescribe equipment quantity and type according to vessel size and service.

Cargo ships require fire detection systems, gas control and automatic extinguishing. On passenger vessels, the Panama Maritime Authority inspects equipment locations and conditions of rescue equipment.

Environmental protection obligations

The maritime transportation security act includes provisions to avoid marine pollution. AMP applies MARPOL and enforces compliance through inspections. Vessels must maintain water treatment systems, oil separators and waste logs. DGMM reviews discharge reports and imposes fines when it detects infractions.

Insurance and liability requirements

Shipowners must keep current insurance that covers accidents, damage and pollution. To verify compliance with this obligation and to issue the Certificate of Financial Guarantee, AMP reviews policies to confirm validity. The maritime transportation security act states that companies must respond for damages they may cause. In case of an incident, DGMM demands proof of coverage and may detain the vessel if the policy lacks proper status.

Inspections and certifications

All vessels undergo technical inspections to confirm that they meet the maritime transportation security act. The Directorate General of the Merchant Marine inspectors verify structure, equipment and records. They forward results to the Panama Maritime Authority, which issues the corresponding safety certification. Authorities renew that document periodically. When inspectors find defects, they suspend vessel operation until personnel correct faults.

Sanctions and Legal Consequences

The maritime transportation security act and regulations set sanctions for those who breach its provisions. The Panama Maritime Authority and Directorate General of the Merchant Marine may impose fines, cancel licenses, detain the craft or suspend operations. Common offenses include navigating without valid documents, failing to keep equipment in good condition or violating maritime safety rules.

The fines vary by severity (for example, lack of adequate rescue equipment or deficiencies in vessel condition) and they usually range between USD 5,000.00 and USD 10,000.00, potentially increasing according to the risk caused. In severe cases, such as repeated noncompliance, illegal acts, or serious violation of international conventions, AMP may report the breach to IMO and withdraw the vessel registration.

Get Maritime Legal Assistance

If you seek advice on ship flagging, concessions and licenses, at Kraemer & Kraemer we have a team of lawyers specialized in Panama maritime law prepared to address your requests. Contact us.