Heightened Indian scrutiny raises barriers for sanctioned vessels seeking recycling

India’s decision to introduce additional documentation checks before end-of-life vessels are cleared could prevent the practice of fake documents among the ‘dark fleet’, says leading vessel cash buyer Wirana Shipping Corporation.



The recent decision taken by the Directorate General of Maritime Administration (DGMA) to introduce an additional process of documentation checks will act as a deterrent to ships being sent for recycling with fake documents, says Wirana Shipping, the world’s oldest cash buyer with over 40 years’ experience.



Recent reports have suggested the number of vessels with fake documents has increased substantially due to the rise of the ‘dark fleet’. The IMO secretariat has identified 529 vessels operating with false, fraudulent or misused registration documents.  



Wirana says the dark fleet will have many vessels that would need to be recycled sooner than later because of their age. There would also be more vessels from the dark fleet that may need to be sent for recycling due to the major shift in U.S Sanctions on Venezuela, with the selective roll-back strategy which has eased restrictions in the oil and gas sector.



CEO at Wirana Rakesh Khetan said: “We are seeing sanctioned ships making their way to ship recycling facilities in Alang, India and this has been possible to a certain extent with fake or altered documentation. Even though banks in India do not work or affect bank fund transfers for sanctioned vessels, there is no regulation that specially bans sanctioned vessels from being recycled in India.”
Wirana Shipping has been vocal on this issue and raised concerns that allowing sanctioned vessels causes problems for ship recyclers who buy clean vessels as they are unable to compete with sanctioned vessels sold at a substantially cheaper price,



Mr Khetan stressed if this practice is allowed to continue then the ship recycling sector in Alang, India, is at risk of gradually being killed off.

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An additional check on documents being submitted for incoming vessels for recycling will surely make it difficult for vessels with fake documents to pass through,” he added. “But there will still be cases where a sanctioned vessel is able to get clearance in India if genuine flag states and insurance companies accept business for sanctioned vessels”



India remains one of the world’s main ship recycling destinations, supported by experienced yards and established infrastructure. And these steps by DGMA will s ensure that ship recyclers who only work with clean vessels will be able to survive, says Wirana.