A recent Financial Times analysis finds that just over half of the world’s shadow fleet oil tankers pose a heightened risk of environmental catastrophe. Most are ageing, often flagged under sanctioned ships, and operate outside standard safety oversight. Port inspections in Rotterdam and Singapore have uncovered cracked ballast tanks, confirming that deteriorating hulls make spills or fires increasingly likely.

Industry veteran Alia Ghani, chief executive of the world’s largest ship recycler, argues that scrapping these vessels is the only viable solution. She warns that retrofitting costs exceed resale value and that continued operation jeopardises coastal communities and insurers. Such action would also align with emerging EU green shipping directives, while recyclers could recover valuable steel and avert costly clean‑up operations.

Governments in Europe and Asia have begun tightening registration rules, forcing owners to prove compliance or face detention. The push for a systematic phase‑out could reshape the secondary market, driving up demand for demolition capacity and creating a surge in scrap metal supply. Stakeholders now face a clear choice: invest in decommissioning or bear disaster fallout. The financial penalties for non‑compliance could reach hundreds of millions.