- Panama revokes 200 tankers, but trade persists.
- Flag state Whack-A-Mole keeps illicit ships afloat.
- Public spotlight grows on shadow fleet operations.
Ukraine and Panama recently crossed paths at the UN General Assembly, with the shadow fleet taking centre stage in their discussions. Jose Raul Mulino reassured Volodymyr Zelensky that Panama had cancelled the registration of 200 tankers that were flouting sanctions on Russian crude. However, Panama’s actions are unlikely to significantly hinder the ongoing illicit trade with Russia, Iran, and Venezuela, reports Lloyd’s List.
Flag State Whack-A-Mole
Efforts to clamp down on rogue operators are turning into a frustrating game of flag-state Whack-A-Mole, as convenient flags provide easy alternatives for these ships. Even the general public is starting to take notice, with the shadow fleet making headlines in outlets like the Financial Times, The New York Times, and The Sun.
Beyond Sanctioned Oil
A new challenge is on the horizon, as more vessels are engaging in borderline-legal activities. Containerised trade has picked up again with Sevastopol and other ports in Russian-occupied Ukraine, blatantly disregarding a 2023 IMO resolution.
Heng Yang 9 in Sevastopol
According to Lloyd’s List, the Chinese-owned Heng Yang 9 (IMO: 1059979) is a repeat offender. AIS data indicates it has made calls at Sevastopol in recent months before heading to Istanbul. Ukraine has protested to Beijing, emphasising that this action violates its sovereignty. The vessel is registered under Panama’s flag, which raises some tough questions for Mulino as he prepares for his next meeting with Zelensky.
Oil Smuggling from Libya
The UN Security Council resolution 2146 clearly states that crude oil exports from Libya need the green light from its authorities and the National Oil Corporation (NOC). Unfortunately, violations are still happening, which mainly benefits the rebel Government of National Stability at the expense of the recognised Government of National Unity, in simpler terms, we’re talking about oil smuggling.
Risks to Safety and Liability
These issues extend beyond just a handful of shipowners. The risks of spoofing are on the rise, putting law-abiding seafarers in jeopardy. According to the International Group P&I rules, any voyages that breach sanctions won’t be covered. If there’s an oil spill, the cleanup costs will fall on the affected states, and liability claims from collisions will be off the table.
Shadow Fleet 2.0
The shadow fleet supporting Russia, Iran, and Venezuela seems to be here to stay rather than just a passing phase. To make matters worse, the number of ships involved in other illegal trades is increasing, creating what we can call a “shadow fleet 2.0.” This situation is bound to further tarnish the shipping industry’s reputation and heighten business risks.
Industry Must Self-Correct
If this trend continues unchecked, it could lead to a public relations nightmare. Shadows only fade away when the object is removed or when the light shines directly above. The shipping industry needs to take action before governments impose even stricter regulations.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Lloyd’s List
