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The Daily View: Taking control

Your latest edition of Lloyd’s List’s Daily View — the essential briefing on the stories shaping shipping

GIVEN the parlous state of the dark fleet populated by illicit rustbuckets, there is an understandable perception that political pragmatism overtook shipping safety concerns some time ago.

While the majority jump through ever-more expensive hoops to comply with the shifting targets of an asymmetric decarbonisation agenda and a multi-polar, fractured trading environment, others sail flag and insurance free to profit in the gaps between unilateral sanctions.

But the assumption these ships are doing so entirely unchallenged is not entirely accurate either.

Port state control inspections may not ensnare every safety issue created by the dark fleet, but it is often a more effective web than many give it credit for.

And in China, which currently takes in the majority of discounted Russian crude, the port state inspectors are quietly operating in overdrive.

Yes, corruption exists. Yes, the dark fleet can, and does, circumvent inspections. But China’s inspectors are the bane of any substandard operator, and Russia is not far behind them. Just ask the good flag states that are routinely ensnared in their inspections.

Fake flags are ten a penny and any unscrupulous owner willing to trawl through the port state blacklists to turn a quick profit at high risk can find a home for the leakiest of sanctions-busting tankers.

But port state authorities have a vested interest in not accepting dangerous tonnage that overrides all but the most direct of political intervention.

Sanctions are twisting towards safety as a rationale for targeting. Governments are doing that precisely because substandard shipping is a far less politicised common interest that can bridge even the most divided geopolitical barrier.

Russia may be ostracised inside the UN system, but it remains an active and astute participant at the International Maritime Organization, where safety standards are still respected, even if the politics that underpin most of the arguments are not.

Donald Trump may be prepared to lift Russian sanctions in pursuit of a “deal”, but that will not eliminate the drivers behind the dark fleet or address the substandard safety concerns that have now become endemic at the bottom of the industry.

Port state control would not be required if flag states were doing their jobs properly, but we live in an imperfect world where backstops are required.

Depoliticised support and attention on port state control standards will not fix the fragmenting geopolitical landscape, but it may just be sufficient to stave off the worst of the environmental disasters that would otherwise happen without it.

Richard Meade
Editor-in-chief, Lloyd’s List

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