India’s decision to introduce additional documentation checks before end-of-life vessels are cleared could prevent the practice of fake documents among the ‘dark fleet’, said top vessel cash buyer Wirana Shipping Corporation.

A dark fleet (or shadow fleet) consists of over 1,000–2,000+ older, often uninsured, oil tankers and cargo vessels using deceptive tactics to bypass international sanctions. 

These ships frequently turn off their AIS trackers, use fraudulent registries, and conduct ship-to-ship transfers to obscure cargo origins.

This move by the Indian Directorate General of Maritime Administration (DGMA) will act as a deterrent to ships being sent for recycling with fake documents, stated the group, which is the world’s oldest cash buyer with over 40 years’ experience.

Recent reports have suggested the number of vessels with fake documents has increased substantially due to the rise of the ‘dark fleet’. The International Maritime Organization (IMO) secretariat has identified 529 vessels operating with false, fraudulent or misused registration documents.  

Wirana Shipping has been vocal on this issue and raised concerns that allowing sanctioned vessels causes problems for ship recyclers who buy clean vessels as they are unable to compete with sanctioned vessels sold at a substantially cheaper price,

Wirana pointed out that the dark fleet will have many vessels that would need to be recycled sooner than later because of their age. 

There would also be more vessels from the dark fleet that may need to be sent for recycling due to the major shift in US sanctions on Venezuela, with the selective roll-back strategy which has eased restrictions in the oil and gas sector.

"We are seeing sanctioned ships making their way to ship recycling facilities in Alang, India and this has been possible to a certain extent with fake or altered documentation. Even though banks in India do not work or affect bank fund transfers for sanctioned vessels, there is no regulation that specially bans sanctioned vessels from being recycled in India," remarked Wirana CEO Rakesh Khetan.

He stressed that if this practice was allowed to continue then the ship recycling sector in Alang, India, is at risk of gradually being killed off.

"An additional check on documents being submitted for incoming vessels for recycling will surely make it difficult for vessels with fake documents to pass through," noted Ketan.

"But there will still be cases where a sanctioned vessel is able to get clearance in India if genuine flag states and insurance companies accept business for sanctioned vessels," said the top official.

India remains one of the world’s main ship recycling destinations, supported by experienced yards and established infrastructure. 

And these steps by DGMA will s ensure that ship recyclers who only work with clean vessels will be able to survive, he added.-TradeArabia News Service