Growing armada shipping sanctioned oil burns dirty fuel
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

Global Rare Earth Supply Chains Diversify Away from China

In response to the rising global demand for rare earths critical for producing everything from electric vehicles to wind turbines, supply chains are undergoing a significant realignment away from China. Historically dominant in rare earth production, China's recent policies and geopolitical tensions have prompted Western nations and other stakeholders to seek alternative sources and bolster local capabilities. Rare earth processing involves two essential stages: initial extraction and subsequent refining into individual oxide compounds used to manufacture magnets essential in various industri..

Next Story
Infrastructure Urban

Coal India, US Firm to Explore Argentine Lithium

State-run Coal India Ltd is collaborating with a US company to explore lithium blocks in Argentina, a critical step in securing supplies of the essential battery material, according to an Indian source with direct knowledge of the matter. This initiative is part of India's participation in the US-led Minerals Security Partnership (MSP), which New Delhi joined last year to ensure a steady supply of minerals necessary to meet its zero-carbon objectives. As part of the MSP, India was invited to engage in 20-25 critical minerals projects, with four already identified by the Indian government. Indi..

Next Story
Infrastructure Energy

India's Coal Consumption Set to Surge Amid Hydroelectricity Shortfall

Amid a significant drop in hydroelectricity production caused by inadequate rainfall, India is gearing up to increase its coal consumption to satisfy rising power demands, according to S&P Global Commodity Insights. This shortfall in hydroelectric power is anticipated to perpetuate India's reliance on coal imports. During the fiscal year 2023-24, India's coal production approached the 1 billion metric ton milestone, reflecting the government's strategy to lessen dependency on imported coal. Nonetheless, the country has already imported approximately 85 million metric tons of thermal coal in 20..

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

Join us Telegram