One of the busiest maritime corridors in the world is being cited as having a growing number of “shadow fleet” or “rogue” tankers operating off its shores.
At least 27 of these ships crossed the Singapore Strait in early December, according to Lloyd’s List Intelligence data that was cited by international maritime authorities, and 130 more are tucked away around Indonesia’s Riau Archipelago.
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Ship-spotters and analysts claim that the profile of some of the ships using these waters has recently changed despite the dense traffic through the strait and appearing routine (more than 80 000 vessels pass through it each year).
Why are there so many “rogue” tankers near Singapore?
Due to the conflict in Ukraine and the Middle East, sanctions from the West have increased against oil exports from nations like Russia and Iran. Both the Trump administration and the European Commission have recently renewed or extended sanctions against Venezuelan oil.
In response, a parallel, unofficial maritime network has developed to facilitate the movement of sanctioned oil.
Around one-third of the world’s traded goods will pass through the Singapore Strait at some point along its route, making it a crucial artery for international maritime trade. The strait, which serves as a natural gateway between the Indian Ocean and the South China Sea, is almost unavoidable for tankers at sea because it is a busy trade route.
The Maritime and Port Authority keeps tabs on vessel movements in Singaporean waters. However, international law restricts what can be done once ships enter high seas, effectively allowing shadow fleets to flourish in regulatory grey areas.
Suspect shipping activity has recently been documented in international waters, far outside the jurisdiction of the city state, just outside Singapore’s territorial waters, which is roughly 22 kilometers from its coast.
How do “shadow fleets” avoid sanctions and what are they?
The number of falsely flagged ships on the world has more than doubled this year to over 450, the majority of which are tankers, according to the International Maritime Organization database, as a result of record sanctions by Western governments in recent years over Russia’s war in Ukraine, Iran’s nuclear program, and, most recently, Venezuela’s campaign.
A flag that identifies the legal authority governing the operation of ships at sea must be carried by all vessels. The UN Convention on the Law of the Sea (UNCLOS) is the body that grants ship nationalities.
A shadow ship, or “ghost ship,” has a long history of being in disrepair and having obscure ownership. When the US seized the tanker, Skipper, off the coast of Venezuela earlier this month, the neighboring government of Venezuela declared it was “falsly flying the Guyana flag” and stated that it was not registered there.
Operators of shadow ships also falsify registration information, broadcast false geo-location information, or even completely disable tracking systems to avoid detection and evade UNCLOS regulations.
These vessels typically transport military equipment and other restricted items, including sanctioned oil. They frequently conduct dangerous ship-to-ship cargo transfers without being discovered at night. This poses a significant risk to both the environment and safety.
Additionally, it’s even more difficult to identify the locations of the tankers because the majority of them are owned by shell companies in jurisdictions like Dubai, where quick transactions by newly formed or anonymous companies can occur.
The growing number of shadow fleets poses a “real challenge,” according to Jennifer Parker, a specialist in maritime law at the Australian University of New South Wales.
Because of the [murky] paper trail surrounding them, Parker claimed that it has been “incredibly difficult to find out who owns them and who insures them.”
She continued, “often they would do what is known as bunkering, which involves moving fuel between ships at sea.” So it becomes difficult to determine the origin of that ship and the source of that oil.
She continued, “Sometimes, what they do is actually mix oil,” so you will have a legitimate ship that will ship the oil to a shadow fleet and mix it so it becomes difficult to really trace where the oil came from, avoiding sanctions.
What issues do these tankers bring about?
Accidents involving older, uninsured vessels can result in environmental disasters like oil spills.
A shadow tanker spill, which can seriously harm the environment, wildlife, and local coastlines, can cost up to $1.6 billion in response and cleanup alone, according to Bunkerspot, a specialist maritime publication.
Russian authorities worked to stop two 50-year-old tankers from spilling oil into the Kerch Strait last December after they were seriously damaged by a stormy weekend. The extent of the damage and the associated cleanup costs are still undetermined.
They can also lead to environmental harm from illegal waste disposal and chemical leaks, among other things.
Who makes the most of shadow fleets?
Ghost Fleet Trading primarily benefits Russia. Despite Western sanctions, Moscow has largely kept its oil exports, keeping its war in Ukraine steady. Iran and Venezuela also sell fossil fuels through ghost fleets, though not in the same way.
Russia and China, which are currently the biggest buyers of Russian crude, profit from steep discounts, frequently purchasing oil far below the $60 per barrel cap, which was set by the West in December 2022 following Russia’s invasion of Ukraine.
Russia’s shadow tanker fleet was heavily dependent on it in 2025, according to S&, P Global, and Ukrainian intelligence tracking. Between January and September, India has been the main source, importing about 5.4 million tonnes of Russian crude oil via shadow tankers.
About 15% of that share is held by China, which is still a smaller but significant portion. Overall, the shadow fleet plays a significant role in this trade, highlighting the fact that the majority of Russian seaborne crude moves outside Group of Seven (G7)-compliant shipping.
What steps have governments taken to combat shadow fleets?
Many shadow tankers have departed from major shipping lanes to avoid being subject to sanctions. This is partly due to European authorities’ recent requirement for physical inspections during ship-to-ship transfers, which makes it riskier for these vessels to travel on conventional routes.
For instance, Denmark, Sweden, Poland, Finland, and Estonia have recently started examining tankers’ insurance status while they are moving through the Gulf of Finland and the Baltic Sea. This aims to enforcing the 2022 sanctions against Russian oil.
In order to reduce Russia’s shipping capacity and reduce its energy earnings, the United Kingdom imposed measures in July 2025, including restrictions on access to UK ports, insurance, and financial services, on 135 shadow fleet vessels and two linked firms.
Source: Aljazeera
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