Growing armada shipping sanctioned oil burns dirty fuel
PORTS & SHIPPING

Growing armada shipping sanctioned oil burns dirty fuel

The global shipping industry faces mounting pressure to adopt cleaner fuel options to curb carbon and sulphur dioxide emissions, aligning with broader environmental goals. However, the proliferation of tankers transporting sanctioned oil from Iran, Venezuela, and Russia presents a significant challenge. These vessels, known as the ?shadow fleet?, often evade regulatory scrutiny due to opaque ownership structures and non-Western insurance arrangements, hindering efforts to enforce cleaner shipping standards. The ?shadow fleet? employs various deceptive practices, such as ship-to-ship transfers in international waters, falsifying identification numbers, and providing false location data. This clandestine activity has led to a rapid expansion of the shadow fleet, comprising approximately 14.5% of the global tanker fleet, according to Lloyd's List Intelligence. The surge in shadow fleet activity, spurred by geopolitical events like Russia's invasion of Ukraine and Western sanctions, raises concerns about environmental impact, safety, and the effectiveness of sanctions. Despite regulations like the IMO 2020 convention mandating low sulphur fuel usage, enforcement remains a challenge. Shadow fleet tankers often bypass these regulations by using higher sulphur diesel, which is cheaper and readily available in ports servicing Russia and Iran. While the extent of non-compliance with IMO 2020 regulations is difficult to ascertain, there has been an increase in detentions related to sulphur-related breaches. Port authorities have detained several ships in connection with sulphur emissions violations, with many having previous calls to Russia. Russia and its Eurasian Economic Union partners have agreed to continue using high sulphur fuel until 2026, enabling ships to obtain this fuel at ports servicing these countries. Similarly, Iran continues to supply high sulphur fuel, with recent operations observed in the Middle East Gulf. Efforts to address these challenges include increased inspections of shadow fleet vessels and stricter fines for irregularities. Ship insurers and certifiers are also scrutinizing vessels engaged in suspicious activities to ensure compliance with sanctions and environmental regulations. Despite these efforts, the persistent use of dirty fuel by the shadow fleet underscores the complex interplay between geopolitical dynamics, regulatory enforcement, and environmental sustainability in the global shipping industry. (ET Infra)

The global shipping industry faces mounting pressure to adopt cleaner fuel options to curb carbon and sulphur dioxide emissions, aligning with broader environmental goals. However, the proliferation of tankers transporting sanctioned oil from Iran, Venezuela, and Russia presents a significant challenge. These vessels, known as the ?shadow fleet?, often evade regulatory scrutiny due to opaque ownership structures and non-Western insurance arrangements, hindering efforts to enforce cleaner shipping standards. The ?shadow fleet? employs various deceptive practices, such as ship-to-ship transfers in international waters, falsifying identification numbers, and providing false location data. This clandestine activity has led to a rapid expansion of the shadow fleet, comprising approximately 14.5% of the global tanker fleet, according to Lloyd's List Intelligence. The surge in shadow fleet activity, spurred by geopolitical events like Russia's invasion of Ukraine and Western sanctions, raises concerns about environmental impact, safety, and the effectiveness of sanctions. Despite regulations like the IMO 2020 convention mandating low sulphur fuel usage, enforcement remains a challenge. Shadow fleet tankers often bypass these regulations by using higher sulphur diesel, which is cheaper and readily available in ports servicing Russia and Iran. While the extent of non-compliance with IMO 2020 regulations is difficult to ascertain, there has been an increase in detentions related to sulphur-related breaches. Port authorities have detained several ships in connection with sulphur emissions violations, with many having previous calls to Russia. Russia and its Eurasian Economic Union partners have agreed to continue using high sulphur fuel until 2026, enabling ships to obtain this fuel at ports servicing these countries. Similarly, Iran continues to supply high sulphur fuel, with recent operations observed in the Middle East Gulf. Efforts to address these challenges include increased inspections of shadow fleet vessels and stricter fines for irregularities. Ship insurers and certifiers are also scrutinizing vessels engaged in suspicious activities to ensure compliance with sanctions and environmental regulations. Despite these efforts, the persistent use of dirty fuel by the shadow fleet underscores the complex interplay between geopolitical dynamics, regulatory enforcement, and environmental sustainability in the global shipping industry. (ET Infra)

Next Story
Infrastructure Urban

We are shaping the next era of vertical mobility

Otis, a global leader in elevator and escalator solutions, is focusing on growth strategies for 2025. Sebi Joseph, President of Otis India, speaks with CW about sector trends and the company’s future plans.What are your key growth strategies for 2025?At the heart of our strategy for 2025 is a commitment to harness India’s growth potential, adapting to the changing landscape, and being a driving force in shaping the future of urban mobility. Our progress will be powered by:Tapping into emerging cities: India's tier 2 and 3 cities, including Jaipur, Indore, and Kochi, are driving rapid ..

Next Story
Real Estate

Brookfield REIT Q3 NOI Rises 11% to Rs 5.03 Bn

Brookfield India Real Estate Trust reported an 11 per cent increase in adjusted net operating income (NOI) to Rs 5.03 billion for the quarter ended December 2024.In a regulatory filing, the company also declared distribution of Rs 29billion  or 4.90 per unit for the quarter ended December 31, 2024.Adjusted Net Operating Income grew by 40 per cent year-on-year during the April-December period of this fiscal to Rs 14.64 Bn from Rs 10.45 billiom in the year-ago period.Brookfield India REIT manages 10 Grade A assets across Delhi, Mumbai, Gurugram, Noida, and Kolkata.The Brookfield India REIT ..

Next Story
Infrastructure Transport

Gurugram’s Key Corridor Set for Expansion

The National Highways Authority of India (NHAI) is set to develop a six-lane surface road and a flyover along the high-traffic stretch between Hero Honda Chowk and Umang Bhardwaj Chowk in Gurugram. The project, estimated at Rs 2.1 billion, aims to decongest one of the city's busiest corridors. The Gurugram Metropolitan Development Authority (GMDA), overseeing the project, has already funded utility relocations. Authorities are now finalizing cost estimates for shifting electricity, water, and sewage lines, with relocation work expected to take six months. Initially planned in 2021, the 3.2-k..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000