India’s recent decision to implement additional documentation checks for end-of-life vessels aims to combat the issue of fake documents prevalent in the dark fleet, according to Wirana Shipping Corporation, a leading vessel cash buyer with over 40 years of experience. The Directorate General of Maritime Administration (DGMA) hopes these measures will deter the recycling of ships with fraudulent documentation.
Reports indicate a significant rise in vessels operating with false registration documents, with the International Maritime Organization identifying 529 such ships. Many of these are aging vessels from the dark fleet, which may soon require recycling, particularly due to recent shifts in U.S. sanctions on Venezuela that have eased restrictions in the oil and gas sector.
Wirana’s CEO, Rakesh Khetan, highlighted that sanctioned ships are increasingly reaching recycling facilities in Alang, India, facilitated by fake or altered documents. He expressed concerns that this practice undermines competition for ship recyclers who deal with legitimate vessels, as they struggle to compete with the lower prices of sanctioned ships.
Khetan believes that the new documentation checks will complicate the process for vessels with fake documents, though challenges may persist if sanctioned vessels secure clearance through compliant flag states and insurance companies. Ultimately, these measures are crucial for ensuring the survival of ship recyclers focused on clean vessels in India, a key global ship recycling hub.
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