Over 30 sanctioned ships in Venezuela face US consequences after tanker seizure
The recent seizure of a Venezuelan supertanker by the US Coast Guard has sparked concern among vessel owners and operators worldwide. This action, taken by President Donald Trump, marks a significant escalation in the ongoing tensions between the US and Venezuela. The seizure, announced on December 10, 2020, is the first of its kind, targeting an oil cargo from Venezuela, which has been under US sanctions since 2019. The Trump administration's move has put many in the shipping industry on high alert, with some reconsidering their plans to sail from Venezuelan waters.
The seizure has already caused a ripple effect, with experts predicting short-term export delays and potential long-term consequences. Venezuela has accused the US of 'blatant theft' and 'international piracy', a reaction that highlights the contentious nature of the situation. The supertanker, identified as the Skipper, is part of a 'shadow fleet' of ships that have been increasingly used to transport sanctioned oil to major destinations. These ships often disguise their locations, making them difficult to track.
The global shadow fleet, according to Lloyd's List Intelligence, consists of 1,423 tankers, with 921 subject to US, British, or European sanctions. These ships primarily transport sanctioned oil from Russia, Iran, and Venezuela to Asian markets. The strategy employed by these vessels, including the use of fake names and location disguises, has been successful in bypassing sanctions. For instance, Venezuela's oil exports rose to over 900,000 barrels per day in November, and imports of naphtha, a crucial diluent for heavy oil, doubled to 167,000 bpd, increasing stock levels.
The US has been proactive in sanctioning Venezuelan-controlled vessels, adding almost all of PDVSA's fleet to its list of sanctioned entities. This move has been mirrored by Russia and China, both heavily sanctioned countries, which have employed similar strategies to circumvent restrictions. The situation is complex, with multiple countries and industries affected, and it remains to be seen how the international community will respond to these developments.
