The standard checks on shipping counterparties are no longer sufficient of identifying bad actors, says the Nordisk Defence Club (Nordisk Skibsrederforening), a freight, demurrage and defence (FD&D) club and legal services provider.
Nordisk, which celebrated 135 years in 2024 and continued its strategic growth and development in the anniversary year, helped members in compliance work, and assisted in screening numerous individuals, companies and vessels for sanctions risks.
Mats E. Sæther, the CEO of the Nordisk Defence Club said in the company’s 2024 annual financial report that the “bad actors are increasingly good at hiding who they are, so the kinds of checks that were standard a few years ago are no longer sufficient.”
“We have therefore actively applied our combined legal and commercial experience towards helping members steer clear of these risks,” the shipping insurer notes.
During 2024 geopolitical tensions were rising. An increasing number of vessels were being sanctioned. Ships have been sabotaging subsea infrastructure both in the Baltic Sea and around Taiwan.
The Nordisk Defence Club claims that its team handled a significant number of cases in courts and arbitration in 2024, whilst two of its London arbitration cases in 2024 were among the largest the club has handled in recent years.
“We were pleased to achieve successful outcomes for our members in both cases, with costs awarded in each instance,” explains Sæther.
“Many of the cases handled in 2024 reflected two mega-trends that affect shipping and trade: The decarbonization drive was gaining momentum with several members investing in cutting edge technology and at the same time, geopolitical shifts were gathering pace.”
The insurer mentions in the report that the dark fleet would likely morph into a “parallel fleet” operating separately from the Western and international shipping fleet.
“However, as vessels get sanctioned and find it harder to trade, new vessels are being sold to buyers who will no doubt employ them in this “parallel” world of shipping.”
Meanwhile, the planned US tariffs on Chinese owned, operated and Chinese built ships look set to further splinter the world fleet. “We are already seeing companies avoiding Chinese-built ships and looking to yards in Korea and Japan as more attractive than just a few months ago,” the CEO added.
