First Supertanker to Be Scrapped in Two Years Is a Dark Ship

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(Bloomberg) — The Amur, a Cameroon-flagged ship known for transporting Iranian oil, has become the first supertanker to be registered for demolition in more than two years, a sign that increasing scrutiny of ships transporting sanctioned crude oil is increasing pressure on operators.

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The 24-year-old very large crude oil tanker was sold to an Indian scrapyard last week, according to a report by BRS Shipbrokers and scrap dealer Wirana Shipping Corporation. This would be the first planned and recorded demolition of a VLCC since late 2022, when Uranus was sent for scrapping, according to shipbreaking and BRS data.

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The scrapping of large ships has become increasingly rare since the Russian invasion of Ukraine and the subsequent imposition of Western sanctions on Moscow, which has led to a significant increase in demand for tankers to transport embargoed oil around the world. To support exports from the OPEC+ producer and from Iran, a large number of private companies have stepped in to buy cheap and old ships – even two decades old and more – to form a “dark” fleet and keep the tankers afloat long after their usual lifespan.

Omar’s age, flag, and other characteristics match those of this Shadow Fleet. The US Energy Information Administration also included it on an October list of ships involved in the export and sale of Iranian crude, although US authorities did not blacklist it.

The specific reason why the owners marked Amor for disposal is unclear. Certainly many of the Dark Fleet carriers are much older and still in operation. But the decision comes as shipping companies report that tough Western sanctions on shadow ships have shaken the market and prompted operators to leave these vessels idle at sea, or avoid them altogether. Weak oil demand is also affecting tanker rates, which have fallen in recent weeks as operators struggle to find work for their fleet.

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“With Chinese demand and OPEC supply in a limited range at best, and sanctions on selected vessels intensifying, VLCCs are under particular pressure. Cleaning up the old fleet through scrap is clearly a matter of due”.

In these circumstances, scrapping old tankers may make sense, shipbrokers say, but it must also be done quickly. Once a ship appears on the blacklist of the Office of Foreign Assets Control, or OFAC, its scrap value tends to decline. Merchants and major yards avoid seizing such vessels because they risk facing secondary penalties, according to the BRS.

Amor Fleet Inc. was not mentioned. and Valiant Marine Ventures FZE, which are listed on the Equasis marine database as Amor’s owner and director respectively, provided a phone number or email address, neither of which could be immediately contacted. Calls and emails to the operator of the free trade zone in the UAE where the two companies are registered, the Sharjah International Airport Free Zone, were not answered.

Amour is known to have structural problems, which may have added to the wider struggle to secure bookings. Earlier this year, a Chinese port detained the ship due to defects including structural problems, fire safety concerns, and problems with tags indicating how much cargo it was carrying, according to Equasis.

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In recent months, the US, UK and EU have imposed sanctions on more individual ships suspected of transporting sensitive cargo, increasing the number of vessels deemed “dark” and increasing downward pressure on shipping rates. Tariffs have already been reduced due to weak demand from China, whose refineries are major consumers for both Russia and Iran.

Since early October, US sanctions have focused on individual ships transporting Iranian crude. At least 60 million barrels of shipping capacity across more than 30 supertankers have been added to the dark fleet pool, according to Bloomberg calculations. That compares with China’s consumption of 52 million barrels per month of Iranian crude, based on the latest three-month average shown by data provider Kpler.

This situation is not expected to ease in 2025. US President-elect Donald Trump’s national security adviser pledged to launch a “maximum pressure” campaign on Iran.

The Amor can still be returned to service, of course. Until the boat arrives, the dealer at the giant scrap yard in Alang, in the Indian state of Gujarat, or the ship owner could still back out of the deal.

Omar is currently located in Khor Fakkan, United Arab Emirates.

– With assistance from Sarah Chen.

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