‘Dark fleets’ are a human rights catastrophe waiting to happen

In January 2025, outgoing US President Biden announced what the Financial Times and Newsweek called ‘Trump-proof’ sanctions against Russia.

According to the US Treasury, the new sanctions cover 183 oil tankers, most of which are part of the ‘dark fleet’ - ships transporting illegal or sanctioned cargo such as oil - as well as tankers owned by Russia-based fleet operators such as Sovcomflot. The sanctions also cover two Russia-based maritime insurance providers that had already been sanctioned by the UK.

What is the ‘dark fleet’ and what are the risks it poses?

The rise of the dark fleet

While not a new phenomenon, the use of a so-called ‘dark fleet’ - ships transporting illegal or sanctioned cargo - has been expanding rapidly since 2022 to circumvent sanctions against Russian oil and liquefied natural gas (LNG) since Russia’s 2022 invasion of Ukraine. Dark fleet vessels either take oil to willing buyers (China and India are the main recipients) or ‘launder’ the oil to disguise its origins before diverting it into the global supply. 

Some estimates claim there are now 1,400 vessels in the fleet – up to 10% of the world tanker fleet. The Kyiv School of Economics estimates that Russia alone has invested nearly $10 billion (€9.26 billion) to set up a ghost fleet of several hundred vessels, estimated at nearly 600 ships in July 2024. 

These actions by the Russian state, along with a gradual shift towards UAE ship ownership where state regulation is less strict, the number of dark fleet vessels is likely to continue rising.

A dark fleet catastrophe is a matter of when not if

As IHRB’s  top ten business and human rights issues for 2025 points out, the dark fleet poses enormous risk to seafarers, coastal communities, and the environment.

Since 2022, dark fleet tankers have been involved in as many as 50 incidents. In particular danger are the straits between Denmark and Norway, the Bosporus, the Suez Canal (remember when the Evergiven ran aground in 2021). But an accident or collision involving a dark fleet vessel could happen anywhere, with some senior shipping figures declaring it is “only a question of time” before a significant disaster takes place.

Dark fleet vessels are often old and substandard. They are invariably non-compliant with Oil Companies International Marine Forum (OCIMF) standards or the Maritime Labour Convention. Automatic Identification Systems (AIS) are frequently disabled in order to avoid detection by authorities, posing a significant risk of collision as ships become ‘invisible’ to other maritime traffic.

Open-sea oil transshipments - a high-risk practice where a ship’s goods are passed to another vessel at sea - are increasingly being used by vessel operators to conceal the origin of the cargo on board. The evasion of sanctions through illicit ship to ship transfers has been documented off Malaysia, Venezuela, and across the Mediterranean Sea. Finland’s Centre for Research on Energy and CleanAir (Crea) has estimated that an oil spill involving a Dark Fleet tanker could cost “from US$859 million to US$1.6 billion”. And because dark fleet vessels “frequently operate with inadequate or no protection and indemnity (P&I) insurance” it is likely that the costs would be borne by coastal countries affected. 

Dark fleet poses huge risks to crew

The dark fleet creates highly risky environments for the seafarers crewing these ships. Stories abound of ships colliding, running aground or having near misses that put crew lives in danger. In May 2023, the Gabon-flagged tanker Pablo caught fire off the coast off Malaysia. Some crew were rescued but three could not be located.

There is evidence that crews are often not aware these vessels are illegal when they board. They are then at risk of exploitation and exposed to insufficient safety standards. The crew are often obliged to carry out risky activities - such as transshipments - without basic safety standards. Additionally, data has shown that dark fleet vessels run a much higher risk of abandonment. Reported abandonments - where shipowners cease communication with their ships and leave crews unpaid and often without sufficient food, water and fuel - have tripled since 2021.

Limitations of international responses so far 

Views are mixed on the effectiveness of the International Maritime Organisation (IMO) - the UN agency responsible for safe and secure shipping - in responding to this challenge. The Norwegian Shipping Association has said that  IMO member states don’t agree on how to respond to the use of dark vessels, and therefore the agency has been unable to address the problem head on. However, some business leaders, such as Cargill’s president of ocean transportation, believe that the IMO must be at the centre of any major initiative to tackle the issue. 

Lars Barstad, CEO of the world’s largest publicly-listed oil tanker operator has accused the IMO of “sleeping behind the wheel”, saying it is “only a question of time” before a significant disaster takes place. He also criticised European governments for failing to enforce rules meant to curtail trading in Russian oil. The Atlantic Council has also called out port states and flag states for turning a blind eye, but the legal position for states is complex and itself fraught with risk, not least due to potential retaliation from the Russian state.

Companies do have leverage to limit dark fleet activities

In a recent call to action endorsed by over 50 countries, the UK Government urged “ship owners and operators, the marine insurance industry, ship brokers and other relevant maritime stakeholders to adhere to their relevant obligations, and support the prevention, detection and reporting of ‘shadow fleet’ activities.” 

Companies, including law firms and finance institutions, ports and insurers, have a responsibility to carry out stringent due diligence to ensure their activities and transactions are not facilitating dark fleet activities. For example, The Atlantic Council urges shipowners not to sell aging vessels into the shadow fleet. Any awareness-raising that legitimate tanker operators can do among their crew to warn against taking work on questionable vessels should be maximised. 

Maritime leaders should also use their influence to discourage ‘open registry’ flag states from ‘flagging’ risky vessels. Open registry flag states are often used by shipowners to register their ships under flags of nations with lower (and therefore cheaper) environmental and labour standards, and less stringent or non-existent implementation of the Maritime Labour Convention. All charterers and traders should carry out stringent due diligence on the provenance of the oil they buy and transport. 

However, it is generally agreed that governments and the IMO must lead the way. The IMO last week named the dark fleet as one of its top priorities for 2025. Secretary General Arsenio Domiguez also reminded Member States of their obligations in line with the IMO’s 2023 resolution on the topic. Their next steps will be discussed at the IMO’s upcoming Legal Committee meeting in March 2025. As the UK’s call to action states, important steps must be:

• sharing information on the practices and operations of the ‘shadow fleet’;
• working more closely with the private sector and other maritime stakeholders to address the threat;
• relevant officials and experts taking more proactive steps to meet together, as a group and in regional formats, in order to take forward concrete measures with the greatest urgency.

Recent tightening by the US government will, according to Lloyd’s List, place additional pressure on the biggest buyers and refineries in China, India and Turkey, and the banks that finance them. 

As the US Treasury has stressed, “the ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior”. Time will tell whether these sanctions are effective - in pushing for a solution to the war, in reducing the flow of sanctioned oil, or in the use of the dark fleet. The IMO has a considerable task ahead in reducing dark fleet activities. And now that the illegal operators have a taste for the vast sums of money that can be generated, the dark fleet could, regardless, be here for the long haul.