US starts turning seized shadow-fleet ships into scrap

Dubai-based ​GMS has won U.S. government approval to scrap two sanctions-hit oil tankers it ‌acquired, months after securing agreements to recycle four sanctions-hit container ships, the ship recycler told Reuters.

The use of so-called shadow fleet tankers has surged in recent years, with hundreds of tankers transporting Iranian or Russian ​oil with limited scrutiny, insurance or safety checks.

Major shipowners have called for faster scrapping ​of such vessels, warning they pose significant environmental and safety risks.

GMS, which buys ships and recycles them at regulated yards, mainly in Asia, received ​U.S. licences on August 8 for two tankers, Yogesh Rehani, GMS' director of operations, said.

The U.S. is "committed to responsible solutions to get sanctioned vessels off the water", a U.S. Treasury spokesperson said, adding that such cases are assessed individually.