Sanctions-Evasion Networks & Diverging Rules Risk Creating A 2-Tier Maritime System

Eighteen maritime nations have warned that growing differences in shipping rules are creating a separate part of the global fleet that operates outside normal safety, insurance and transparency standards. 

The Consultative Shipping Group (CSG), an informal alliance of 18 maritime authorities, issued a joint statement on Tuesday.

The group represents more than a fifth of global trade by tonnage. 

Over 80% of global trade is transported by sea, making shipping routes critical to the global supply chain and the world economy.

The CSG said the shipping industry has experienced repeated disruptions in recent years, from the COVID-19 pandemic and the war in Ukraine to the Panama Canal drought and the US-Iran conflict. 

Prices of oil and other commodities have skyrocketed as a result, as have fertiliser prices.

One of the CSG’s main concerns is the growing number of ships used to bypass international sanctions. 

Many of these vessels operate without the insurance, safety checks and transparency normally expected in international shipping. 

This split divides the shipping industry into two different parts. One follows the rules, while the other does not follow the same standards. 

This practice can create problems when something goes wrong. 

Take the example of the Caroline Bezengi, an oil tanker which exploded after hitting a limpet mine near the Omani port of Salalah this summer.

The ship, which was part of the shadow fleet, did not have traditional forms of insurance cover in the form of protection and indemnity (P&I) and so the bill for the cleanup fell to the Omani government.

A lack of proper insurance has caused similar issues. Since Western P&I clubs began withdrawing from any vessels involved in the Russian oil trade last year, alternative insurers have had to step in, despite some being financially weaker.

This means that a P&I club from the country in which the accident occurred will have to pay for the costs of an accident if one of the shadow fleet ships is involved.

Another concern for the CSG was the strait of hormuz, particularly the effect of any disruption to shipping in this waterway.

Shippers are worried that Iran’s proposal to levy a toll on ships passing through the strait may lead to similar actions being taken in other strategic shipping corridors.

War-risk insurance costs for tankers using the strait also rose sharply after the conflict began in February 2026, and the higher risk is still affecting insurance renewals. 

CSG Calls For Common Rules

The CSG said shipping becomes harder and more expensive when countries apply different rules or take separate approaches. 

Uncertainty over access to ports and shipping routes can also make it harder for companies to plan their operations and investments. 

The group also called on governments to promote “common standards and procedures” and support the “international legal framework” established by the International Maritime Organisation (IMO).

The member countries of the CSG are Belgium, Canada, Denmark, Finland, France, Germany, Greece, Italy, Japan, South Korea, the Netherlands, Norway, Poland, Portugal, Singapore, Spain, Sweden and the United Kingdom.