- A shadow fleet refers to a group of tanker ships that obscure ownership and origin of cargo to bypass international sanctions.
- These ships frequently change flags, names, and ownership, using complex structures like shell companies and registration under Flags of Convenience (FoC) to avoid regulatory oversight.
- This allows sanctioned countries, such as Russia, to export goods despite restrictions.
- Some Indian firms have been linked to shadow fleets, especially in connection with Russian oil shipments operating from Dubai.
- Flag of Convenience (FoC):
- Ships flying a flag of a country different from their owner’s country, are often used to reduce costs and bypass strict regulations.
- Shipowners benefit from lower taxes, fewer regulations, and easier registration in countries with lenient maritime laws.
- Panama, Liberia, and the Marshall Islands are popular FoC countries, allowing owners to obscure the true ownership and origin of vessels, and complicating enforcement of international laws.
Dig Deeper: Read about the Indian Register of Shipping (IRS).
