Panama's Shipping Registry, the largest in the world at the end of 2010, has finally exited the "grey list" compiled by signatories of the Paris Memorandum of Understanding (Paris MOU.)

The Paris MOU compiles a list of shipping registries that are not in compliance with international standards. The group uses inspections of vessels flagged by a country to determine its level of compliance.

According to the Panama Maritime Authority, officials with the Paris MOU conducted 8,391 inspections of Panamanian-flagged vessels between 2008 and 2010, and found 485 violations. This was 64 violations under the threshold the group established for Panama to exit the grey list.

The change in status is expected to boost Panama's standing among the international maritime community, which could help boost the number of vessels registered here.

Recently, Panama has seen a slight decline in the number of vessels registered here, but an increase in the overall tonnage. Officials said this is a positive sign, as it will be easier to inspect fewer, larger vessels.