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.

Top photo: Bulk carriers offshore from Singapore, on Monday, Feb. 19, 2024. Singapore must be prepared for a more challenging trade environment going forward regardless of who wins the US presidential election in November as the city-state seeks a place in what its top trade official described as a supply chain “new order.” Photographer: SeongJoon Cho/Bloomberg.