Insurers Say Dark Fleet Oil Tankers Pose a Major Claims Risk

Marine insurance markets face significant risk from the growth of a shadow fleet of ships hauling oil from sanctioned producers like Russian and Iran, an industry group said.

The opaque nature of the ownership of those vessels makes it hard to identify who would be at fault in the event of a collision, Ilias Tsakiris, chair of the hull committee of the International Union of Maritime Insurers.

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

Russia assembled a shadow fleet of about 700 vessels in order to help keep its oil exports moving in the aftermath of western sanctions following its invasion of Ukraine. Danish pilots that board such ships have described them as old piles of junk, underscoring the risk they pose to the wider environment.

Photograph: Bulk carriers offshore from Singapore, on Monday, Feb. 19, 2024. Photo credit: SeongJoon Cho/Bloomberg

Related:

• A Gas Carrier Faking Its Location Helps Russia Avoid Sanctions
• How Iran Oil Link Could Complicate Insurance Claims After Tankers Collide Off Singapore
• Dark Fleet Caper Exposes Growing Risks in Crowded Malacca Strait

Topics Carriers Claims Energy Oil Gas