‘The global economy as we know it would come to a sudden halt’: Shipping authorities from 18 countries warn of a ‘two-tier’ system imperiling trade

Global trade faces a looming threat as shipping authorities from 18 countries warn of a "two-tier" maritime system. This emerging divide between legitimate and shadow fleets could lead to a sudden halt in trade, which makes up 80% to 90% of global commerce. The International Maritime Organization (IMO) sets rules for maritime operations, but shadow fleets, not abiding by these regulations, are on the rise.

These vessels, often linked with Russia or Iran, smuggle goods, disregard anti-pollution laws, and lack widely recognized insurance, causing environmental disasters and disrupting the market. In July, a sanctioned oil tanker belonging to the shadow fleet leaked crude oil near Oman after an explosion. CSG Chair Brian Wessel warns that these illegitimate fleets, comprising 20% of tankers, pose risks to safety, the environment, and market fairness.

Protectionist policies, geopolitical conflicts, and the Iran war have incentivized the emergence of these shadow fleets. CSG Chair Wessel urges renewed focus on enforcing international maritime law, increased transparency, political support for upholding standards, and adapting laws to evolving technology. While challenges remain due to countries acting in their own interest, there's evidence of countries' interest in mitigating maritime crimes, such as the U.S.'s efforts to secure international support from the United Nations Security Council.