Indian Scrapyards Welcome Growing Number of Dark Fleet Tankers

Indian shipbreaking yards are witnessing a sharp rise in the arrival of so-called “dark fleet” oil tankers — aging vessels that operate outside mainstream regulatory systems and are often linked to sanctioned or opaque energy trade routes. Industry sources say the trend reflects both tightening international enforcement and the deteriorating condition of ships that have spent years transporting oil under secrecy.
The vessels, many of which previously served Russian, Iranian, or Venezuelan oil shipments, are now reaching the end of their operational life. India’s massive ship recycling sector has emerged as a primary destination for their dismantling.
What Is the “Dark Fleet”?
The term “dark fleet” refers to tankers that frequently switch flags, disable tracking systems, and use complex ownership structures to avoid scrutiny. These ships expanded rapidly after Western sanctions were imposed on Russia’s oil exports following the Ukraine war, and similar tactics had already been used by fleets linked to Iran and Venezuela.
Analysts estimate that hundreds of tankers now operate in this shadow network, moving crude oil and petroleum products through indirect routes and offshore transfers.
“These ships were never meant to last forever,” said a maritime risk consultant. “Many are now too old and unsafe to continue sailing, so scrapyards are the final stop.”
India Becomes a Key Destination
India is home to one of the world’s largest ship recycling industries, centered around the coastal hub of Alang in Gujarat. Known for dismantling everything from cargo ships to aircraft carriers, Alang has increasingly received tankers suspected of being part of the dark fleet.
Shipbreakers say the vessels often arrive with minimal documentation and under flags of convenience such as Gabon, Cameroon, or Mongolia. Once cleared by Indian authorities, the ships are beached and dismantled piece by piece for scrap steel.
Steel recovered from these ships feeds India’s booming construction and manufacturing sectors, making the business highly profitable despite growing scrutiny.
Regulatory Concerns
Environmental and safety groups have raised alarms over the risks posed by these tankers. Many dark fleet ships are more than 20 years old and lack proper maintenance records. They can contain hazardous materials such as asbestos, oily sludge, and toxic paint residues.
The International Maritime Organization has repeatedly warned about unsafe practices linked to aging tankers and illegal oil transfers at sea.
“These vessels pose a threat not just to crews but also to coastal ecosystems,” said a spokesperson for an environmental watchdog group. “If they are not dismantled under strict safety rules, the pollution cost will be enormous.”
India has introduced tougher ship recycling standards in recent years, including compliance with the Hong Kong Convention for safe and environmentally sound ship recycling. Officials say every vessel entering Indian scrapyards must provide documentation proving it is free of radioactive or prohibited materials.
A Result of Sanctions Pressure
Experts say the influx of dark fleet tankers into scrapyards is a direct consequence of tighter sanctions enforcement by Western governments. Insurance companies and major shipping registries have cut off support to vessels suspected of violating oil price caps or sanctions.
Without insurance and port access, many of these ships can no longer trade safely.
“Once a tanker loses insurance, it becomes commercially useless,” said a shipping analyst in Mumbai. “Scrapping is the only option left.”
Some tankers arriving in India are believed to have transported Russian crude to Asia at discounted prices before being retired. Others previously moved oil between the Middle East and China under opaque arrangements.
Economic Benefits vs Ethical Questions
For India’s shipbreaking industry, the arrival of more tankers means steady business and employment for thousands of workers. Local steel mills benefit from a consistent supply of scrap metal, keeping prices stable.
However, critics argue that dismantling dark fleet vessels indirectly supports a system that helped evade international sanctions.
“There is a moral dilemma here,” said a geopolitical expert. “India is not violating sanctions by scrapping ships, but it is benefiting from a trade that exists because of them.”
Indian authorities maintain that ship recycling is a lawful industrial activity and that vessels are processed according to domestic and international regulations.
Environmental and Worker Safety Risks
Shipbreaking has long been controversial because of hazardous working conditions. Laborers often work with cutting torches near fuel residues and toxic materials. Although safety standards have improved, accidents still occur.
Local NGOs in Gujarat say dark fleet tankers may be more dangerous than average because their maintenance history is unknown.
“These ships were pushed to their limits,” said one activist. “They are floating environmental hazards when they arrive.”
What Comes Next
With sanctions on Russia and Iran likely to remain in place for years, analysts expect more dark fleet tankers to reach scrapyards across South Asia, including India, Bangladesh, and Pakistan.
India’s government is under pressure to ensure that shipbreaking does not become a backdoor service for illegal shipping networks. Regulators are now reviewing stricter background checks on vessel ownership and previous trading routes.
At the same time, global shipping companies are watching closely. The dismantling of older tankers may reduce supply in the shadow fleet, potentially tightening enforcement of oil sanctions worldwide.
A Quiet End for Shadow Ships
For vessels that once moved millions of barrels of oil across hidden routes, their final destination is silent and industrial: a beach lined with cranes and cutting torches.
What began as a strategy to bypass sanctions is ending in scrapyards, where steel is melted down and reused for buildings, bridges, and factories.
The growing presence of dark fleet tankers in Indian yards highlights a little-seen consequence of global geopolitics — where international conflict, energy markets, and environmental responsibility intersect on the country’s shores.