Shadow Fleet

Such vessels are bought through chains of single-ship companies, often registered in places that reveal little about owners. They fly flags of convenience, and may change flag or name. Insurance comes from unknown firms, rather than recognised marine insurers, so a spill or accident could go uncompensated. The ships may turn off tracking transmitters, send false positions, or load and unload at sea. Their cargo moves to buyers who accept the discount for sanctioned goods. The fleet is a major tool for carrying sanctioned oil past a price cap or a ban. Authorities respond by listing vessels, barring them from ports and services, and pressing insurers and registries for information. Banks meet the fleet through payments to ship managers, brokers and port agents with odd structures. Its ships look ordinary on paper, yet they carry large flows of sanctioned trade.

Asked to pay a bunker fuel invoice, a bank’s trade desk finds that the 22-year-old tanker is owned by a company set up nine months ago. The ship’s insurer is unknown and the manager’s address is a shared office. Tracking data shows long gaps in the ship’s signal. The bank declines the payment and files an internal report.