First Supertanker Scrapped in Two Years: A 'Dark Ship'

Amor, a 24-year-old supertanker flying the Cameroon flag and known to have carried Iranian oil, has become the first very large crude carrier (VLCC) to be scrapped in the past two years. Sold to an Indian scrapyard last week, the vessel marks the first scheduled VLCC scrapping recorded since Uranus was sent to demolition in late 2022.

Russia's invasion of Ukraine and subsequent sanctions imposed by the West on Moscow increased demand for tankers to transport restricted oil globally. During this period, private companies purchased cheap and aging vessels to form a "dark fleet" and extended the lifespan of tankers. Amor's age, flag, and other characteristics align with this shadow fleet. Despite being added to a list of vessels involved in Iranian crude oil exports by the U.S. Energy Information Administration in October, it was not blacklisted by U.S. authorities.

The exact reason why ship owners decided to scrap Amor remains unclear. Many dark fleet tankers, despite being older, remain operational. However, tightening Western sanctions against shadow vessels have caused operators to keep these ships idle at sea or avoid using them altogether. Additionally, weakening oil demand has led to falling tanker rates, making it difficult for operators to find work for their fleets.

David Wech, chief economist at analytics firm Vortexa, commented: "With Chinese demand and OPEC supply flat at best and vessel-based sanctions intensifying, VLCCs are under particular pressure. Clearly, the aging fleet needs to be cleaned up through scrapping."

Under these conditions, scrapping older tankers makes economic sense; however, the process needs to move quickly. Once a vessel is added to the Office of Foreign Assets Control (OFAC) blacklist, its scrap value drops. Mainstream sellers and shipyards avoid acquiring such vessels due to the risk of secondary sanctions.

Amor Fleet Inc. and Valiant Marine Ventures FZE are listed in the maritime database Equasis as the vessel's owner and manager; however, no contact information is available. Calls and emails to the operator at Sharjah Airport Free Zone, a free trade zone in the United Arab Emirates, went unanswered.

Amor is known to have structural defects, which may have complicated its efforts to secure bookings. Earlier this year, a Chinese port detained the vessel due to structural issues, fire safety concerns, and problems with loading markings.

In recent months, the United States, United Kingdom, and European Union have intensified sanctions against individual vessels believed to be carrying sensitive cargoes. This situation has increased the number of ships considered "dark," creating downward pressure on freight rates. Rates were already declining due to weak demand from China, the primary customer for Russia and Iran.

Since early October, U.S. sanctions have focused on individual vessels carrying Iranian crude. According to Bloomberg calculations, more than 30 supertankers representing at least 60 million barrels of carrying capacity were added to the dark fleet pool. According to data provider Kpler's three-month average, this is a significant figure when compared to China's monthly consumption of 52 million barrels of Iranian crude oil.

Amor could theoretically be returned to service. However, until the vessel reaches the scrapyard, both the scrap buyer and the ship owner can back out of the agreement. Currently, Amor's signals indicate it is off Fujairah in the United Arab Emirates.

Key Points:

• Amor became the first supertanker to be scrapped in the past two years.

• The vessel was among "dark fleet" ships carrying Iranian oil.

• Tightening Western sanctions against shadow vessels have made the operation of such ships difficult.

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News Link: https://gcaptain.com/first-supertanker-to-be-scrapped-in-two-years-is-a-dark-ship/

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