After 30 years, Liberia has officially surpassed Panama in the ship registry, according to data from Clakson’s World Fleet Monitor. The African nation now has the largest flagged fleet in terms of gross tonnes.

According to reports, Liberia holds 246.5 million gross tonnes, achieving an annual growth of 5.6%. Its growth rate exceeded that of Panama, which grew its fleet by just 2.3%, reaching a total of 244.3 million gross tonnes.

While Libera may have overtaken Panama in gross tonnage terms, Panama still holds the top spot for the number of ships registered under its flag. The Central American nation registered 8,254 ships compared to Liberia's 5,052.

However, Liberia’s fleet comes in younger at 12.6 years compared with Panama's at 19.3 years.

The top three flagged states are Liberia, Panama, Marshall Islands, followed by Hong Kong, Singapore, People's Republic of China, Malta, Bahamas, Greece, and Japan, notes Seatrade Maritime.

Ship registration is mandatory for vessels to travel internationally, much like a passport. Likewise, when a ship is registered with a particular country, it gains that nationality. The country under which it is registered is called its "flagged state".

The flagged state then has the right to protect that ship according to international law. It must conduct regular inspections of the ship, certify its equipment and crew, and issue safety and environmental protection documents.