GS-2: INTERNATIONAL RELATIONS AND GS-3:ECONOMY
THE CONTEXT: The term “shadow fleet” has recently gained attention in the global maritime industry (on the 21st of 2024) because of sanctions imposed on Russia due to its ongoing conflict with Ukraine.
EXPLANATION:
About Shadow Fleet:
- A fleet of tanker ships that obscure the ownership and origin of cargo, often to bypass international sanctions.
- These ships operate by frequently changing flags, names, and ownership to mask their activities and avoid sanctions or regulatory oversight.
- The use of complex ownership structures, shell companies, and registration under Flags of Convenience (FoC) makes enforcement of sanctions difficult, allowing sanctioned countries, like Russia, to export goods.
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- India has been implicated in hosting shadow fleets, particularly in relation to Russian oil shipments, with some Indian firms reportedly linked to such fleets operating from Dubai.
About Flag of Convenience (FoC):
- A Flag of Convenience (FoC) vessel flies the flag of a country different from the country where the ship’s owner is based. This is often done to save costs and avoid stringent regulations on crew welfare and ship maintenance.
- Allows shipowners to benefit from lower taxes, fewer regulations, and easier registration processes in countries with less stringent maritime laws.
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- Countries like Panama, Liberia, and the Marshall Islands are known for offering FoCs, making them attractive for owners looking to minimize operational costs and oversight.
- It allows owners to obscure the true origin and ownership of vessels, making it harder to enforce international laws and labor protections.
About Indian Register of Shipping (IRS):
- It was established in 1975 under the Indian Companies Act, based on the recommendation of the Mudaliar Committee. Amis must ensure accurate classification and safety records of mercantile shipping and other maritime-related constructions.
Functions:
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- Sets standards for the construction, maintenance, and operation of ships.
- Conducts surveys and provides technical certifications for maritime equipment and industrial installations.
- Assists in the development of India’s merchant marine industry and evaluates quality management systems.
- Global Recognition: IRS has grown to become an internationally recognized classification society and became Chair of the International Association of Classification Societies (IACS) in 2019.
- Commitment: IRS promotes safety, environmental protection, and maritime risk management, aiming to be a trusted partner in maritime operations worldwide.
Source:
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