G7 cracking down on shadow tankers

The G7 is stepping up efforts to crack down on the shadow fleet, which now accounts for more than 20% of the global tanker fleet. Foreign ministers have called for expanded satellite-based vessel tracking to monitor illicit ship-to-ship oil transfers and unregistered tankers – many of which are moving Russian oil under sanctions.

What is the shadow fleet?
The term shadow fleet refers to a group of older vessels, often poorly maintained, underinsured, and operating with fraudulent registrations, posing significant risks to maritime safety and environmental security. The shadow fleet is frequently involved in transporting sanctioned oil from Russia, Iran, and Venezuela. The G7’s push for stricter oversight could result in sanctions, vessel detentions, and increased compliance costs for shadow operators.

A crackdown on these vessels could disrupt global oil flows, forcing more cargo into the compliant tanker market. If enforced, this could drive higher demand and stronger freight rates for compliant operators.