08 Jul 2019
As the U.S. looks to enforce sanctions aimed at halting trade with states such as Iran and Venezuela, there’s increased scrutiny on the tricks being used to keep commodities flowing to and from blacklisted countries.
Ships vanishing from tracking screens, clandestine transfers on the high seas and fake destinations are among some of the tactics used to hide the business from authorities, according to analysts who track flows around the world. These maneuvers have helped Iran continue with about 300,000 a day of oil exports in June, half of which went to China, according to Bloomberg Intelligence.
Here’s a description of how some of those tricks work.
1. Going Dark
A common method to transport Iranian oil or North Korean coal with stealth is to turn off the Automatic Identification System, an electronic device that pinpoints a ship’s location. Known as going dark, a vessel flicks the switch before berthing and typically reappears days later, masking the location of its load or discharge port. Ships can sometimes still be tracked by satellites, but even that is limited by scope and weather.
Count reading this article to your CPD minutes, by signing up to our CPD WalletFREE CPD Wallet