Sanctions-Evasion Networks & Diverging Rules Risk Creating A 2-Tier Maritime System

Eighteen major maritime nations have warned that growing differences in shipping rules are creating a separate part of the global fleet that operates outside normal safety, insurance and transparency standards.

The warning came in a joint statement issued Tuesday by the Consultative Shipping Group (CSG), an informal group of maritime authorities from 18 countries. The group represents more than a fifth of global trade by tonnage.

More than 80% of world trade is carried by sea, making a stable shipping system important for global supply chains and the wider economy.

The CSG said shipping has faced repeated disruptions in recent years, including the COVID-19 pandemic, the war in Ukraine, drought in the Panama Canal and the U.S.-Iran war.

The situation in the Middle East has added to those problems this year. Fighting and blockades around the Strait of Hormuz have made the waterway a major pressure point for global shipping.

Oil and other commodities, including fertilizers, have become more expensive as a result.

One of the CSG’s main concerns is the growing number of ships used to get around international sanctions.

Many of these vessels operate without the insurance, safety checks and transparency normally expected in international shipping.

The group warned that this is creating two different parts of the shipping industry. One follows established rules, while the other operates with fewer safeguards.

That can create problems when something goes wrong.

The case of the Caroline Bezengi is one example.

The vessel, described as part of the shadow fleet, was carrying about 800,000 barrels of Russian crude when it hit a limpet mine off Oman this summer.

The ship did not have traditional protection and indemnity (P&I) insurance. As a result, no insurer stepped forward to pay for the cleanup.

The Omani government has largely been left to cover the cost.

The gap in insurance has grown since 2022, when Western P&I clubs began pulling back from vessels linked to Russia’s sanctioned oil trade. Alternative insurers have taken their place, but some have limited financial strength.

This means that when a shadow fleet vessel is involved in an accident, the coastal country where the incident happens can be left with much of the financial responsibility.

The CSG also pointed to the Strait of Hormuz as an example of how changes in shipping rules and growing geopolitical tensions can affect the wider industry.

Iran’s efforts to introduce a toll system in the strait have raised concerns among shipowners. They fear similar measures could be attempted at other important shipping routes.

War-risk insurance costs for tankers using the strait also rose sharply after the conflict began in February 2026.

Those higher risks are still being reflected in insurance renewals.

A problem at a major chokepoint can affect several parts of the maritime insurance market at the same time, including ship, cargo and P&I coverage.

CSG Calls for Common Rules

The CSG said shipping becomes harder and more expensive when countries apply different rules or take separate approaches.

Uncertainty over access to ports and shipping routes can also make it harder for companies to plan their operations and investments.

The group called for existing international shipping rules to be applied more consistently across countries.

It also urged governments to support common maritime standards and the international framework overseen by the International Maritime Organization (IMO).

The CSG said greater cooperation does not take away from national sovereignty. Instead, it argued that countries need to work together because global shipping connects economies around the world.

The group warned that if the differences continue to grow, shipping markets could become more divided and disruptions at major chokepoints could become harder to manage.

The CSG members are Belgium, Canada, Denmark, Finland, France, Germany, Greece, Italy, Japan, South Korea, the Netherlands, Norway, Poland, Portugal, Singapore, Spain, Sweden and the United Kingdom.