Insurers say oil tankers in the dark fleet pose a major risk of damage

Marine insurance markets face significant risks from the growth of a shadow fleet of ships carrying oil from sanctioned producers such as Russia and Iran, an industry group said.

The opaque nature of the ownership of these vessels makes it difficult to identify who is at fault in the event of a collision, Ilias Tsakiris, chairman of the hull committee of the International Marine Insurance Union.

“This so-called ‘dark fleet’ poses significant risks to marine insurers,” he said at the organisation’s annual conference on Wednesday. “These vessels are often operated by questionable entities, and their lack of transparency makes it difficult to assess liability in the event of accidents or pollution. This is a growing concern for marine insurers.”

Russia has assembled a shadow fleet of around 700 ships to keep its oil exports moving in the wake of Western sanctions following its invasion of Ukraine. Danish pilots who board such vessels have described them as old junk piles, highlighting the risk they pose to the wider environment.

Top photo: Offshore bulk carriers in Singapore, Monday, February 19, 2024. Singapore must brace for a more challenging trading environment regardless of who wins the US presidential election in November, as the city-state searches for a place in what what its top trade official described as a “new order” supply chain. Photographer: SeongJoon Cho/Bloomberg.

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