Energy Tankers’ Shadow Fleet Ploy to Slip Out of Hormuz
For years now, ships involved in sanctioned and illicit trade have “gone dark” to avoid detection — that is, switched off their automatic identification system (AIS) transponders to make themselves virtually invisible to authorities and other vessels.
This dark shipping practice, while not inconsequential, has largely been limited to the “shadow fleets” transporting sanctioned Iranian and Russian oil. But for energy tankers looking to sail through the fraught waters of the Strait of Hormuz, avoiding detection is increasingly becoming a necessity.
Iran war constricts Strait of Hormuz traffic
Before the war began on February 28, the Strait of Hormuz accounted for a fifth of global oil and liquefied natural gas (LNG) flows. Maritime traffic through the waterway has since reduced to a trickle amid threats, and even a few attacks on merchant vessels.
India depended heavily on the Strait of Hormuz for its energy imports, with over 40% of its oil imports, 60% of its LNG imports, and 90% of its liquefied petroleum gas (LPG) imports coming through the narrow passage that connects the Persian Gulf to the Gulf of Oman and the Arabian Sea. Many of the energy cargoes that have reached India via the Strait of Hormuz over the past three months also went dark as they crossed the strait.
Shadow Fleet Grows to 600 Vessels, World Bank Reports
Among the most recent examples was the LNG tanker Al Hamra, operated by an arm of the Abu Dhabi National Oil Company. Trade sources indicated that Al Hamra had not transmitted its location for days by turning off its transponder, before emerging again on the map on May 23 after crossing the strait. It arrived at Gujarat’s Dahej on May 26.
“What began as a behaviour largely associated with Iran-linked tonnage has broadened materially. Non-Iranian operators now account for the majority of dark outbound laden transits through the Strait (of Hormuz). AIS-off movements through Hormuz are no longer only a sanctions-evasion signal. They have become a wider commercial response to conflict risk, operational uncertainty, and the need to keep Gulf cargo moving through one of the world’s most important energy chokepoints,” said Claire Jungman, director of maritime risk & intelligence at energy and freight markets analytics firm Vortexa, in a recent note.
Surge in Dark Transits Through Strait of Hormuz
According to International Maritime Organization (IMO) guidelines, AIS should always be in operation when a ship is sailing or at anchor, unless the master of the ship decides that broadcasting the information is a threat to its safety or security. AIS is seen as critical for safe maritime navigation. Switching the transponder off essentially makes the vessel untrackable and invisible to other ships’ systems, which can significantly increase the risk of collisions at sea. This risk becomes even greater in crowded waterways such as the Strait of Hormuz.
According to Vortexa data, dark transits through the Strait of Hormuz — between March 1 and late May — represent 57% of all transits recorded over the period. This trend of ships going dark while transiting the strait has intensified in recent weeks. The share of outbound laden vessels transiting dark stood at 58.5% in March, slightly dipped to 54% in April when vessel movements through the waterway picked up slightly through corridors regulated by Iran, and then rose sharply to 65.2% in May, as per Vortexa.
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Original Article: How energy tankers are using a shadow fleet ploy to slip out of Hormuz — Indianexpress