As Reuters reports, the growing shadow fleet of tankers transporting sanctioned Iranian, Venezuelan and Russian oil is filling up with the cheapest fuel available, hindering industry efforts to use cleaner fuel to cut shipping emissions.
The International Maritime Organization (IMO) has implemented regulations to reduce emissions from ships, with enforcement duties falling on member countries. These nations can impose fines or detain vessels for failing to comply. In response to concerns about non-compliance, the IMO urged its members to increase inspections on “shadow ships” and impose stricter penalties for any violations, Reuters notes.
What is the dark/shadow fleet?
The “dark fleet” or “shadow fleet” comprises primarily older tankers, many of which have not undergone recent inspections and lack proper maintenance. Ownership of these vessels is often unclear, and they frequently operate without adequate insurance coverage, seeking to evade sanctions and mitigate high insurance costs. This increases the risk of oil spill or collision. This could also result in a participating shipowner evading its liability under the relevant liability and compensation treaties.
IMO rules stipulate that ships can only use high-sulfur fuel if equipped with exhaust gas cleaning systems (scrubbers). However, “shadow fleet” tankers can use higher-sulfur diesel without scrutiny unless inspected at ports enforcing the regulations. This practice, prevalent among vessels without scrubbers, violates the IMO’s sulfur limits, Reuters highlights.
Although the extent of non-compliance across the shadow fleet is challenging to determine, there’s been a notable increase in detentions due to sulfur-related breaches. Port authorities in Europe and Asia detained at least 10 ships in the first five months of 2024, up from previous years. Notably, ships detained often have prior calls to Russia, where high-sulfur fuel remains available until the end of 2026 under agreements with Russia and its Eurasian Economic Union partners, Reuters reports.
Additionally, Iran has supplied high-sulfur fuel to ships in the Middle East Gulf, with instances of fuel transfer observed. For example, the Casinova tanker loaded such fuel in Iran and later transferred it to smaller ships in southern Iraq. According to Reuters, concerns over such activities have prompted actions from entities like ship insurers and certifiers, indicating a broader effort to ensure compliance with international regulations and sanctions regimes.
