Shipping body warns on sanctions evasion as new flag states added to global registry
Shipping’s largest trade body, the London-based International Chamber of Shipping (‘ICS’) has expanded its annual Flag State Performance Table to include four registries allegedly associated with sanctions evasion, as it moves to address growing concerns about ships seeking to bypass US, EU and G7 restrictions.
‘The new additions, Cambodia, Eswatini, Gabon and Guinea-Bissau are reportedly used by some shipping companies seeking to bypass US/EU/G7 sanctions, leading to concerns as to whether international maritime standards are being properly enforced on board ships flying the flags of these States,’ ICS said in an 18 February statement. It comes amid growing concerns voiced by US and EU officials that Russia and Iran are using ageing and unsafe oil tankers involved in sanctions evasion.
The ICS noted particular concern over Eswatini’s emergence as a flag state, as it is not a member of the UN International Maritime Organization (‘IMO’) and therefore ‘not a signatory of its international maritime Conventions.’
‘For more than 50 years, shipping has been a global industry operating under global rules, and it is vital that flag States adhere to their obligations to enforce the highest global safety standards,’ ICS Secretary General Guy Platten said, urging shipping companies to ‘carefully consider the performance of flag administrations when making decisions about the flags which they choose for their ships to fly.’
Meanwhile, the world’s largest flag states continue to demonstrate strict adherence to international regulations, with registries representing more than 53% of the global fleet – including Greece, Hong Kong, Japan, Liberia, Malta, Marshall Islands and Singapore – maintaining all-green performance indicators on the latest table.
‘The vast majority of the global shipping industry is registered with flag States that strictly enforce global regulations, as shown, for example, by the results of Port State Control inspections,’ ICS noted. ‘Bahamas, China PRC and Panama, also in the top ten by tonnage, also demonstrate very good performance and a strict commitment to global maritime regulation.’
Earlier this month Panama’s ship registry announced it has adopted a ‘zero tolerance policy’ against sanctions evasion attempts as it seeks to attract modern vessels and maintain regulatory compliance.
