Oil tankers previously used to transport sanctioned cargo continue to arrive at Indian shipbreaking facilities, including the Alang cluster in Gujarat. These are the so-called “shadow fleet” vessels, which are being decommissioned and transferred for recycling.
🚢 According to industry sources, at least three such tankers—Woodchip, Global Star, and Bodhi—arrived on the Indian coast in the last month alone. The Woodchip, approximately 33 years old, is one of the oldest Suezmax vessels to arrive for recycling after being placed on sanctions lists.
đź—‘ Reasons for the increase in scrapping
Analysts note that some of the aging “shadow fleet” tonnage is being decommissioned amid changes in the oil trade and an increasing supply of vessels. The average age of tankers involved in the transportation of sanctioned cargo exceeds 20 years, increasing operational risks and reducing the commercial attractiveness of such fleet units.
While shipyard operators previously avoided purchasing sanctioned vessels due to the risk of secondary restrictions, the decline in market activity and high scrap metal prices have led to a gradual return of such transactions.
đź“Š Last year, at least 15 sanctioned vessels, including large-capacity tankers, were sent for recycling at Alang. Market participants note that the decommissioning of older vessels is contributing to a partial renewal of the “shadow fleet” and impacting the balance of tonnage supply in the oil shipping segment.
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