Complicated cargoes in the world of sanctions

Michael Grey advises seafarers to beware of unscrupulous operators

These are very strange times in the maritime world, with so many uncertainties surrounding issues of international trade, which drive the operations of ships. The baleful presence of the sanctions-evading ‘dark fleet’, with dubious insurance, state of repair and possibly even operating under false flags, is casting an ever-wider shadow. The proliferation of sanctions themselves means that even the most respectable ship operator must be constantly alert to this changing state of affairs, with all their legal implications.

It is perhaps too easy for the seafarer to conclude that all such complications are so far above their pay grades that there is nothing to be done about them. But they can find themselves the ‘collateral damage’ if, for some reason, their ship is caught up in these troubles over sanctions involving the vessel, or its cargo. It is, for instance, not unusual for the seafarer – even senior officers – to have little idea of the beneficial owners of the ship they are sailing on. It is similarly unlikely that they will have much clue about the ownership of the cargo their ship is carrying. Ships can change hands, without the crew being necessarily aware of this, while cargoes have always been bought and sold while in transit.

So, when their ship finds itself detained because of some allegation of ‘sanction-busting’ charges, the crew are likely to find themselves in an unenviable position, possibly even joining the record number of abandoned seafarers, or, in the case of senior officers, facing charges themselves.

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What can seafarers do to mitigate these risks? Some of the more obvious strategies would be, when it is possible, to stay close to the better-known ship and crew managers, whose own vetting systems can be relied upon for both their employees and clients. It would be wise to avoid taking up employment with unknown employers, aboard ships that seem to change hands and flags frequently, and who employ seafarers on a casual basis with few checks. Under no circumstances should a seafarer ever pay an agent for employment and offering vague contract terms.

Should not flag States be rather more careful about the ships they are taking into their registers? One of the ridiculous scandals of the present problems is caused by flag States with no obvious regulatory competence suddenly taking on considerable numbers of large ocean-going ships, with little ability to properly inspect them. Names and flags themselves are changed in an obvious ruse to confuse those attempting to police sanctions. Even more outrageous has been the way in which many of those in control of these ‘ghost’ ships have used completely false flags or non-existent registries to identify themselves, with voyages being taken ‘incognito’ with electronic identities masked or switched off. The position of those aboard such ships, as has been seen with vessels arrested, is exceedingly precarious.

The regular survey undertaken by the International Chamber of Shipping of flag States is publicly available and the latest edition has recently been published. This gives a good indication of both the capability and, by inference, the respectability of national and international ship registers. As a reference document, it does give an overview of the convention status of every flag, and a range of its capabilities. It is a useful indicator and reference for seafarers