Shadow Fleet Grows to 600 Vessels, World Bank Reports
The West Moves to Block the Supply of Illegal Aging Vessels… “International Cooperation Needed”
Old Oil Tankers Converted into Shadow Fleet
A Growing Threat to Global Maritime Safety and the Main Cause of Environmental Pollution
Editor’s Note The Strait of Hormuz in Iran, which accounts for about 34% of global maritime crude oil trade volume, has seen tanker traffic plummet to just 10% of normal levels after it was blocked. This is the result of the Iran war, which U.S. President Donald Trump promised would end in no more than six weeks, now entering its sixth month. Although some had predicted at the start of the war that oil prices would soar to $200 per barrel, prices have fluctuated between $70 and $120 since the outbreak of hostilities. A key factor limiting oil price increases has been the activities of the so-called “Shadow Fleet.” These are groups of crude oil smuggling vessels with unclear national affiliations, often referred to as “pirates.” Experts say the Shadow Fleet temporarily acts as a firebreak, preventing oil prices from skyrocketing in the short term, but is likely to have negative long-term effects. Observers point out that it undermines the effectiveness of U.S. sanctions against Iran and finances the Iranian regime, playing a central role in prolonging the conflict.
Aging Vessels Join Shadow Fleet
The Caroline Bezengi, a 25-year-old oil tanker registered under the Cameroonian flag, sank in Oman waters last June. It is suspected to be an oil tanker belonging to the Russian shadow fleet. Salvage operations for the vessel began on July 13th, two months after it ran aground. During this time, oil leaked from the vessel created an oil slick spanning 2,000 square kilometers in nearby waters. The tanker’s owner listed as a shipping company based in Shanghai, China, has been confirmed to be part of the Shadow Fleet.
The use of aging vessels in the Shadow Fleet raises concerns about economic costs, environmental risks, and safety hazards. Calls are growing to tighten monitoring of aging tanker operations, including their insurance and safety status.
Russia Expands Shadow Fleet by Converting Outdated Oil Tankers
Russia is actively utilizing aging oil tankers as part of its Shadow Fleet since it invaded Ukraine. Demand for Russian crude oil has underpinned the second-hand trade of older tankers. Recently, methods of hiding the real owners and purposes of these vessels have also proliferated, including changing a ship’s flag or using paper companies set up in third countries.
According to global shipping brokerage firm BRS Shipbrokers, about 78% of second-hand tanker transactions between January and October of last year involved ships at least 15 years old. Among the 262 tankers aged 15 years or older that were traded during the same period, about 130 were subject to sanctions. Buyers were from various countries including China, Greece, and the United Arab Emirates (UAE), with Chinese shipowners purchasing about 26% of all used vessels.
The number of Russian Shadow Fleet ships designated for EU sanctions is also increasing rapidly. As of July 23rd, the European Commission had designated 673 Russian Shadow Fleet vessels as sanction targets—a nearly 25-fold increase compared to 27 ships on June 27, 2024.
In April, the EU slightly amended its sanctions policy to target more aging tankers and their owners, aiming to curb the growth of the Shadow Fleet.
Original Article: [The Two Faces of the Shadow Fleet]③The West Moves to Block the Supply of Illegal Aging Vessels… “International Cooperation Needed” — Co