All about Shipping fleets - Western vs Shadow vs Dark

The "Western Fleet" is the largest (90% of the global tanker fleet) with the most transparent with links to Western insurance and finance. The Western Fleet’s oil and product tankers of 45,000 dwt size and above, mandatorily have P&I (“Protection and Indemnity") maritime insurance cover underwritten by one of 13 P&I Clubs. Maritime policies cover large transnational marine liability risks including the property or interest (the ship including hull and machinery of the ship, the cargo, and the freight (the charterer fee for transporting goods)) insured against perils of the sea such as bad weather, stranding, collision, fire seizure and the like based on an assumed estimated maximum loss (EML) factor with or without Demurrage protection regardless of where the cargo is moving. The high-risk environment produced by ongoing security challenges in the Black and Red Seas has complicated the premium rates and issuance of war risk insurance to the detriment of oil shipping. The cost of insuring a ship through the Red Sea has more than doubled since the start of 4Q2024 and some underwriters undertaking to make good the loss of an interest in the carriage venture are pausing cover as the risk of attack from Yemen's Houthis on commercial vessels increases.



The "Shadow fleet" comprises of more than 360-odd ships, typically more than two decades old relying on sovereign insurance and financing from the Russian state as they may be used to circumvent international sanctions. These “Shadow fleets”, equivalent to 16% of the global crude tanker inventory, keep Russia’s crude exports flowing dodging the “Russia oil price cap” being less transparent than the Western fleet, avoiding disclosures on charterers and undertaking longer journeys than they have ever done before to undisclosed destinations with middlemen only paying for the cargo once they have collected the proceeds.

"Dark fleets" consist of around 100 battered tankers as much as half a century old which actively try to hide activity by turning off satellite transponders or sending spoof signals. These "dark fleets" engage in covert trade in crude from Iran and Venezuela to clandestine customers, but similar activities are starting to emerge in Russia. They are renamed and repainted, sometimes several times a journey. They often transit via busy terminals where their crude is blended with others, making it hard to detect. Were they to cause an accident, the insurers may be unwilling or unable to cover the damage.