India tightens vessel scrapping rules to sink 'dark fleet' fraud, report says

529 vessels have been identified operating with fraudulent registration documents.

India’s additional documentation checks before end-of-life vessels are cleared could prevent fake documents amongst the ‘dark fleet,' Wirana Shipping Corporation said.

The International Maritime Organisation (IMO) secretariat has identified 529 vessels operating with fraudulent registration documents due to the rise of the dark fleet.

Wirana said the dark fleet will have many vessels needing to be recycled due to their age and the major shift in the United States sanctions on Venezuela, 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, made possible with fake documentation,” CEO at Wirana Rakesh Khetan said.

He added that although banks in India do not affect bank fund transfers for sanctioned vessels, there is no regulation specifically banning the recycling of sanctioned vessels in India.

Wirana Shipping said that allowing sanctioned vessels causes problems for ship recyclers who buy clean vessels, as they are unable to compete with units sold at a lower price.

“If this practice continues, the ship recycling sector in Alang, India, is at risk of gradually being killed off,” Khetan warned.

He added that there will still be cases where a sanctioned vessel can get clearance in India if genuine flag states and insurance companies accept business for sanctioned vessels.