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Dark Fleet Oil Tanker Caught in Recent Collision Heads to China

Ceres I’s recent movement history. (Source: Bloomberg)

(Bloomberg) -- A dark-fleet oil tanker that was recently involved in a crash in Southeast Asia is now on its way to China.

Ceres I, an aging very-large crude carrier that’s suspected of transporting sanctioned oil, is en route to Zhoushan in eastern China, according to ship-tracking data compiled by Bloomberg. 

The vessel meets widely accepted traits of a dark fleet tanker. It appears on a list of vessels suspected of trading Iranian oil in defiance of US sanctions, sails under a flag of convenience and has previously turned off its transponder to avoid detection. 

Its crash with a regular merchant vessel in July also highlights the significant claims risk the dark fleet poses for marine insurers. Furthermore, its age and capacity to carry as many as 2 million barrels of crude pose a major environmental risk that could rival some of the worst spills in history.

Before its latest journey, the VLCC had been detained by Malaysian authorities for its involvement in the collision with the Hafnia Nile, a refined-products carrier, near a tight cluster of mostly dark fleet tankers outside the territorial waters of Malaysia and Singapore. The incident left both ships ablaze.

Following the crash, Ceres I switched off its transponder and moved north before being intercepted and detained by Malaysian authorities. No one was hurt in the incident, and there was limited environmental damage.

The current status of discussions and claims between Ceres I and Hafnia Nile, and the progress of investigations by Malaysian authorities, are unclear.

Malaysia’s maritime authorities said they are reviewing Bloomberg News requests for comment. A spokesperson for Hafnia Ltd. referred to a Sept. 10 update stating that the Hafnia Nile had been towed back to Singapore for repairs and that both the city-state and Malaysia were carrying out investigations. It also said at the time that it was unable to locate the owner, manager or insurer of Ceres I. 

Shipping databases show the vessel is owned and managed by Hong Kong-based Ceres Shipping Ltd. The company has no online presence, publicly available contact details or known means to communicate. Ceres I has no known insurer and is currently registered in São Tomé and Príncipe, but has changed its flag nation several times in recent years. 

The tanker has not been officially sanctioned by the US despite being suspected of the illicit trade. Ship-tracking data show it regularly shuttles between China and the waters off Malaysia, where dark fleet tankers are known to transfer cargoes. In March, it made a stop at a major export terminal at Iran’s Kharg Island, Kpler data show.

©2024 Bloomberg L.P.