Gujarat court arrests shadow aframax bound for the breakers

A Comoros-flagged aframax tanker, the Conico Atlas, has been arrested in India amid allegations of misrepresentation and sanctions violations during its sale. The Gujarat High Court intervened after Global Maritime filed a petition claiming the vessel was sold without disclosing its sanctioned status. This incident has halted the ship’s demolition process, raising questions about transparency in maritime transactions.

Legal Action and Allegations

The incident began when the Conico Atlas, built in 2004, was sold for scrapping after being denied entry at Vadinar port earlier this year. Global Maritime claims that Tachio Trading, the registered owner, did not inform them of the vessel’s sanctions status, which would have prevented the sale. Following the initial agreement, Global Maritime transferred a 10% deposit and paid for customs duties and port charges, as well as a letter of credit to facilitate the ship’s demolition by Indian recycler Shri Gautam Ship Breaking.

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However, when Global Maritime attempted to finalize the transaction through Mashreq Bank, their payment was blocked due to the vessel being under sanctions imposed by authorities in the UK, EU, Switzerland, Australia, Canada, and New Zealand. These developments prompted the company to seek legal recourse to void the sale and recover its advance payments. They argue that the owner attempted to pressure them into completing the transaction despite the financial institutions’ refusal to release additional funds.

Background of the Conico Atlas

The Conico Atlas has a controversial history, previously operating under several names, including Andaman Skies and Delta Pioneer. Once part of Greece’s Delta Tankers fleet, the vessel has been linked to shadow fleet operations involved in transporting sanctioned crude oil from countries like Russia and Venezuela. Global Maritime is now pursuing a money decree with interest, claiming the vessel’s sanctioned status was not disclosed during the sale process.

This case highlights the ongoing issues surrounding the maritime industry, particularly regarding the sale and operation of vessels within the shadow fleet, which often operate outside regulatory frameworks. As legal proceedings unfold, the implications for future maritime transactions and the accountability of vessel owners are likely to be significant.