First Sanctioned Ship Gets Scrapped: A Watershed for the Dark Fleet

The maritime industry is witnessing a significant event as the first sanctioned ship, a 24-year-old very large crude carrier (VLCC) known as the Amor, is set to be scrapped in India. This development, reported by BRS Shipbrokers and Wirana Shipping Corporation, marks a potential turning point for the "dark fleet" – a term used to describe older ships employed to transport oil under sanctions imposed by Western nations.



The Amor, flagged in Cameroon, was part of the shadow fleet and was listed by the U.S. Energy Information Administration (EIA) in October 2024 as a vessel involved in the export of Iranian crude. However, it has not been officially blacklisted by U.S. authorities. Industry analysts believe that the ship's age, structural issues, and recent detention at a Chinese port due to multiple deficiencies, including fire safety issues and unclear load markings, may have contributed to its sale for scrapping.

The decision to scrap the Amor comes amidst a period of increased demand for tanker vessels to transport oil from sanctioned countries like Russia and Iran. However, the recent weakening of oil demand and declining tanker rates have put pressure on operators to scrap older, less efficient vessels. Tighter sanctions by the U.S., U.K., and European Union have expanded the number of vessels under sanctions, further impacting the viability of such tankers.

The Amor's scrapping is a clear indication of the changing dynamics in the global tanker market, particularly in relation to the demand for sanctioned crude oil and the supply of available vessels. As sanctions continue to tighten and market pressures increase, more vessels may be scrapped, potentially leading to a decrease in supply and an increase in tanker rates. The ongoing geopolitical tensions and the potential intensification of sanctions could further exacerbate these market dynamics.

In conclusion, the scrapping of the Amor is a significant event that reflects the broader challenges faced by the dark fleet, including increased scrutiny and sanctions, weak market conditions, and the need to scrap older, less efficient vessels to avoid further losses. This event may signal a potential shift in the market, as operators and governments involved in the sanctioned oil trade adapt their strategies to address these challenges and ensure long-term sustainability.