Glossary term
Port Denial
Subject: Financial Crime, Sanctions
Port denial is a sanctions measure that refuses chosen vessels entry to a country’s ports and its services, such as docking, fuel and repair, usually because the ship is listed or linked to sanctioned trade.
Explanation
A ship that cannot enter ports cannot unload cargo, take on fuel or supplies, or get repairs and insurance cover. Governments apply port denial to vessels named on sanctions lists, to ships that have called at banned ports, and sometimes to vessels flying a particular flag. Authorities may bar entry outright or only deny services once a ship is inside port waters. Ports, port agents, bunker suppliers and marine insurers act on the measure, and banks meet it when asked to pay port charges or finance a cargo. Because many sanctioned cargoes travel on ships that keep changing identity, port authorities also check ship numbers and tracking history. Port denial does not by itself freeze the owner’s other assets. Each refused berth, fuel order or repair makes evasion by sea slower and more costly.
Example
A shipping agent asks its bank to pay fees for a tanker due to call at a European port. Screening of the ship’s identification number shows it appears on a list of vessels barred from port services. The bank declines the payment, informs the customer that it cannot support the call, and records the decision in the sanctions file.
Not to be confused with
- Asset Freeze
- Blocks use of a listed party’s property. Port denial stops a vessel entering ports and using their services.