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Winter weather in the Northeast US leads to thousands of flight cancellations and delays
Snow and ice blanketed the U.S. Northeast on Saturday morning, causing disruption to airline traffic after the holiday weekend. Officials in New York and New Jersey declared weather emergencies even though the storm had subsided by midday. New York and New Jersey declared states of emergency due to the treacherous road conditions. New York Governor Kathy Hochul made a statement saying, "The safety and well-being of New Yorkers are my highest priorities. I will continue to urge caution for the duration of this hurricane." Bob Oravec, meteorologist at the National Weather Service Weather Prediction Center in Washington, D.C., says that by early Saturday, six to ten inches of snow (15 to 25 cm) had fallen in an area spanning from Syracuse, in central New York, to Long Island, in the southeast, and Connecticut. Oravec reported that Central Park received 4.3 inches of snow, the highest amount since 2022. He said, "The good thing is that most of the heavy snow has melted." "Only a couple of flurries are left this morning, and they will fade by afternoon." Travelers were feeling the effects. FlightAware reports that more than 14,400 domestic U.S. flight cancellations or delays occurred on Saturday morning. The majority of these flights were in the New York region, at John F. Kennedy International Airport (JFK), LaGuardia Airport (LaGuardia) and Newark Liberty International Airport (Newark Liberty). FlightAware reports that another 2,100 international flights scheduled to leave or land the U.S. Saturday have been canceled. American Airlines, JetBlue Airways and United Airlines representatives said that they waived the change fees usually charged for rebookings in cases where weather disruptions may have affected travel plans. Winter weather advisories and ice storm warnings were also posted in?most Pennsylvania and most of Massachusetts. New Jersey and Pennsylvania have issued restrictions on commercial vehicles for certain roads, including interstate highways. Tahesha way, acting governor of New Jersey, said that the storm would cause hazardous road conditions and affect holiday travel. We urge travelers to avoid traveling during the storm to allow crews to maintain roads. Rich McKay reported from Atlanta. Steve Gorman and Maria Tsvetkova contributed additional reporting from Washington, while Steve Tsvetkova reported from New York. Sergio Non, Mark Potter and Sergio Non edited the article.
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Waymo's San Francisco outage raises doubts over robotaxi readiness during crises
The widespread power outage that caused Waymo robotaxis to stall and snarl traffic in San Francisco earlier this month has raised concerns over the ability of autonomous vehicle operators (AVOs) to handle major emergencies such as earthquakes and flooding. Videos posted on social networks showed driverless taxis of Alphabet's?Waymo unit, a common sight on the streets, stuck at intersections, their hazard light on, as?traffic signals?had stopped working after a PG&E fire that had knocked out electricity to about one-third the city in December 20. Waymo suspended operations and resumed them a day after. The incident has renewed the call for tighter regulation in a nascent, but rapidly growing industry. Other companies such as Amazon's Zoox and Tesla are racing to expand robotaxi service across several cities. "If you get a response to a blackout wrong, regulators are derelict if they do not respond to that by requiring some sort of proof that the earthquake scenario ?will be handled properly," said Philip Koopman, a Carnegie Mellon University computer-engineering professor and autonomous-technology expert. Waymo stated in a Tuesday statement that, while its robotaxis were designed to handle nonoperational traffic signals as four-way stop, they sometimes request a verification check. The vehicles were able to successfully navigate more than 7,000 dimmed signals on Saturday. However, the "outage" caused a spike in confirmation requests which "led to response delay contributing to congestion on already overcrowded streets," Waymo stated. Robotaxi operators use remote control by humans in various degrees around the world to monitor and operate vehicles. This is known as "teleoperation". Waymo has, for instance, a team human "fleet responses" agents that?respond to the questions of the Waymo driver, its robot, when they encounter a specific situation. Missy Cummings of George Mason University Autonomy and Robotics Center and a former advisor to the U.S. Road Safety regulator said that such remote assistance had its limitations. She said that the whole purpose of remote operations was to have humans available when the system did not respond as it should. Cummings stated that the federal government should regulate remote operations. Cummings said that the federal government should regulate remote operations. The California Department of Motor Vehicles (DMV) and the California Public Utilities Commission (CPUC), which regulate and issue licenses for the testing of robotaxis and their commercial deployment, are investigating the incident. The DMV stated that it was in contact with Waymo, and other automakers about emergency response. The DMV also stated that it was formulating rules to ensure remote driver "meets high standards for safety and accountability, as well as responsiveness." "A SHOT ACROSS BOW" The deployment and commercialization of fully autonomous vehicles has been "harder than anticipated" with high investments being made to ensure that the technology is safe, and public outcry following collisions forcing some to close their doors. After a high-profile incident in 2023, when a robotaxi of?General Motors Cruise dragged a person, regulators revoked the permit. The company eventually ceased operations. Elon Musk, CEO of Tesla, has promised rapid expansion. Waymo has also expanded rapidly, after a slow and steady growth since it was launched as Google's autonomous driving project in 2009. Waymo has a fleet that includes more than 2,500 cars. It operates in San Francisco Bay Area and Los Angeles as well as Metro Phoenix, Austin, Atlanta, and Atlanta. The company stated that the confirmation processes it follows were developed during its early deployment, and they are now fine-tuning them to fit its current scale. Waymo has implemented fleet-wide updates to provide vehicles with a "specific power outage contextual, allowing them to navigate more effectively." Cummings, as well as Koopman, said that robotaxi operators would need to meet additional requirements when their fleets reach a certain size. This is to ensure they are equipped to handle large-scale problems. Koopman stated that "if this had been a quake, there would have been problems." This is just a warning shot. Reporting by Abhirup in San Francisco, Editing by Sayantani and Alistair Bell
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Spanish family missing following boat sinking off Indonesia
Spanish authorities and an Indonesian media agency reported on Saturday that a Spanish family of four was missing after a boat with?eleven passengers sank in severe weather off the coast of Indonesia. Antara, a state-run news agency, reported that the 'other passengers' - including two?tourists?from?Spain and four crew members - were rescued in safety late on Friday. Antara reported that the vessel capsized due to waves up to three metres high in the Padar Strait, near Labuan Bajo Island, a popular tourist destination. Spain's Foreign Ministry said that Indonesian rescue teams were searching for the missing family. (Reporting and editing by Andrew Cawthorne; Victoria Waldersee)
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California drops lawsuit against Trump's revocation of high-speed rail funding
California has dropped its lawsuit against the Trump administration's decision to?cancel over $4 billion of federal grants for California's high-speed railway project. The state announced this late Friday. California High-Speed Rail Authority said that Tuesday's decision to drop the lawsuit reflects the state's "assessment" that the federal government was not a trustworthy, reliable or constructive partner for advancing high-speed railroad in California. The agency stated that it will move forward without federal funding. It added that only 18% program expenditures have been funded by federal funds. A judge rejected an attempt to dismiss the lawsuit?this month. The U.S. Transportation Department or White House did not respond immediately to comments. The latest 'headache for a project plagued by delays and cost overruns' Governor Gavin Newsom said that the termination of grants by Republican President Donald Trump was "petty political retribution" motivated by Trump's personal animus towards California and the high speed rail project. The funding cuts are just the latest obstacle in the 16 year effort to connect Los Angeles and San Francisco with a three hour train ride. This project would provide the fastest passenger rail service available in the United States. The project, originally planned to be completed by 2020 and cost $33 billion is now estimated to cost between $89billion and $128billion, with service expected to begin by 2033. California voters approved the first bond issue in 2008. Since then, more than 50 major structures have been built, including bridges overpasses undercrossings viaducts. The project has also completed almost 80 miles of guideway. In August, the Transportation Department canceled $175 million in funding for four projects in the high-speed train program. This was after the federal government canceled $4 billion in grants. California's agency announced this week that it would begin a process of attracting private investors and developers before summer 2026. The agency stated on?Friday that the loss of federal funds will not derail construction and the project. It added it was making progress. The agency stated that rather than continue to spend money and time fighting the termination, it is moving ahead without them. In June, the Federal Railroad Administration released a 315 page report that found the project plagued with missed deadlines. It also revealed budget shortfalls as well as questionable projections of ridership. Trump withdrew $929 million of federal grants during his first term. The state challenged the move, which led to a settlement under Democratic President Joe Biden in 2021, restoring the entire amount. Reporting by David Shepardson, Washington
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Winter storm wreaks havoc on the Northeast of the United States, causing airline travel to be disrupted
Winter storms - a mix of ice and snow - swept through the U.S. Northeast early on Saturday. This caused disruption to airline traffic after the holiday weekend and led officials in New York and New Jersey declare weather emergencies. The National Weather Service issued ice storm and Winter Storm Warnings in New York State and Connecticut. They forecasted some of the highest snowfall totals, up to one foot locally. According to a Friday emergency declaration by Governor Kathy Hochul warning of dangerous?road conditions, New York City may see its largest accumulations since 2022 with peak snowfall rates?of 2 or more inch per hour. Forecasts for many areas predicted that snow would be covered or mixed with sleet, freezing rain and a mixture of the two. Hochul issued a statement in which he urged residents to "avoid any unnecessary travel." Winter weather advisories and ice storm warnings were also posted in most of Pennsylvania, Massachusetts and New Jersey. A state of emergency was also declared. The storm was expected to bring high winds. On Friday night, snow began to fall in the western part of New York State and New York City. It was expected that it would intensify on Saturday. FlightAware, a flight tracking service, reported that more than 1,600 commercial flights were cancelled on Friday. Another 7,800 or so flights were delayed due to weather conditions worsening. Flight cancellations on Friday were mainly caused by three airports in the New York City region: John F. Kennedy International Airport, Newark Liberty International Airport and LaGuardia Airport. All three airports issued alerts via social media platform X, warning travelers of possible disruptions. FlightAware reports that another 650 flights scheduled to leave or land in the U.S. this Saturday have been canceled. The representatives of?American Airlines United Airlines and JetBlue Airways said that these carriers waived the?change fee normally charged for re-bookings to passengers whose plans could be affected by weather related disruptions. New Jersey and Pennsylvania have issued restrictions on commercial vehicles for certain roads, including interstate highways. Tahesha way, acting governor of New Jersey, said in a press release that the storm would cause hazardous road conditions and affect holiday travel. We urge travelers to avoid traveling during the storm to allow crews to maintain roads.
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China tightens safety regulations and revises its aviation law
China has passed a revised bill that, for the first time, regulates unmanned aircraft. This will reshape China's drone industry and low-altitude economic sectors. On December 27, the Standing Committee of the National People's Congress voted to approve the changes made under the Civil Aviation Law. The amendments include a provision for airworthiness certification of drones, which fills in a regulatory gap. According to the Chinese Academy of Sciences and Peking University, China's Civil Aviation Administration, China's low altitude economy (a national strategic initiative focused on commercial activities under 3,000 meters) is expected to grow from 1.5 trillion yuan to 2 trillion yuan by 2030. All entities that are involved in the production, importation, maintenance, operation, and design of drones will be required to obtain an 'airworthiness certificate' under the new rules. According to national regulations, drone manufacturers will have to assign each unit a unique code for product identification. China's "interim regulations" on unmanned aircraft will be implemented in 2024. They stipulate that civil unmanned planes must be registered using their real names. Micro, light and small civil unmanned airplanes do not need airworthiness certificates, but medium and large aircraft must submit an application to CAAC for certification. China's drone industry has grown rapidly, but oversight has been lacking. In recent years, flight delays have been reported in several cities due to illegal drone operations. These flights were penalized with fines and other penalties. These new requirements will impact manufacturers like DJI, the world's largest consumer drone manufacturer, and EHang which makes passenger drones. According to data from the transport ministry, drone logistics has become a major driver in China's low altitude economy. 2.7 million packages, containing everything ranging from hamburgers and sandwiches?to lifesaving medicine, will be delivered by 2024. JD.com, Meituan and other e-commerce leaders have long discussed investing in drone logistics as a way to improve supply chain efficiency. JD Logistics tested drone delivery networks across Jiangsu and Shaanxi. They claim that drones can cut shipping times by as much as 70% for rural customers. (Reporting and editing by Shri Navaratnam, Casey Hall)
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US Airlines cancel more than 1,000 flights as a result of Northeast Winter Storm Warnings
Flight tracking website FlightAware reports that airlines in the United States have canceled or delayed a large number of flights on Friday during peak holiday travel due to severe weather warnings. The website reported that 1,139 flights were cancelled and 3,808 flights were delayed by 12:30 pm ET. National Weather Service issued a warning this afternoon about winter storms that "will create hazardous travel conditions from the Great Lakes into the northern Mid-Atlantic region and southern New England today through Saturday morning." Airports that are in areas of high impact, such as John F. Kennedy Airport or LaGuardia Airport, have posted signs on X to warn travelers about possible delays?or cancelations. JetBlue Airways, with 225 cancellations, is the largest carrier. Delta Air Lines, with 186 cancellations, Republic Airways, American Airlines, United Airlines, and 96 flights by American Airlines are close behind. A spokesperson for American Airlines said that the airline has "issued an alert allowing travelers whose plans could be affected to rebook their flights without paying any?change fees." JetBlue, Delta Air Lines and United Airlines didn't immediately respond to comments. Reporting by Aatreyee dasgupta in Bengaluru and Abhinav parmar; editing by Shakesh Kuber
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US Airlines cancels over 1,000 flights because of Winter Storm Warnings
Flight tracking website FlightAware reports that airlines in the United States cancelled or delayed thousands of flights on Friday during peak holiday travel due to severe winter storm alerts. As of 12:01 p.m. ET, 1,097 flights had been?cancelled and 3,608 were delayed. ET, according to the website. The National 'Weather Service' issued a warning of winter storms today afternoon, which "will cause dangerous travel conditions for the Great Lakes into northern Mid-Atlantic & southern New England from today until Saturday morning." Airports such as 'John F. Kennedy Airport' and Detroit Metropolitan Wayne County Airport have also posted on X to warn travelers of possible delays or cancellations. JetBlue Airways has cancelled 225 flights. This is the most of all carriers. Delta Air Lines, which cancelled 177 flights, and Republic Airways, who canceled 153 flights, are close behind. Reporting by Aatreyee dasgupta, Bengaluru. Editing by Shashesh Kuber.
Special Report-Iran and Russia, as well as the New Zealand insurance company that ensured their oil flowed despite sanctions
The tanker Yug left the Chinese port Qingdao last Christmas after unloading 2,000,000 barrels of Iranian oil sanctioned by the United Nations. A vessel carrying Russian crude oil shook through the icy waters of the Arctic on its way to India. Six thousand miles from Malaysia, a third vessel unloaded its Iranian oil cargo.
Three tankers were owned by different companies, operated by different people and had different clients. They all shared one thing, however: A small insurer with headquarters in New Zealand that was backed by some of world's largest reinsurance companies.
Paul Rankin, 75, and his family run Maritime Mutual. It has been insuring tugboats, ferries, and cargo ships for more than 20 years.
Maritime Mutual also assisted in the trade of tens billions of dollars worth of Iranian and Russian crude oil by providing the vessels with the insurance needed to enter ports. This was according to a review thousands of shipping records and insurance records. It also included hundreds of oil transactions and sanctions designations as well as interviews with over two dozen people who knew the company.
The shadow fleet is a group of tankers who transport banned cargoes out of countries like Iran, Russia, and Venezuela. They conceal their trade by using fake documents, locations and names.
Maritime Mutual’s insurance coverage played a vital role in helping the dark fleet – as it is also known – to operate despite the sanctions designed to stop Iran from raising funds for anti-Western militias in the Middle East, and drain Russia’s war chest to fight the conflict in Ukraine.
Reporting reveals that at one point, the company, whose primary business Maritime Mutual Insurance Association is based in a dark gray office building in Auckland has insured almost one out of six shadow fleet tankers sanctioned and sanctioned from Western governments such as the United States.
David Tannenbaum, former U.S. Treasury sanction specialist and director of Blackstone Compliance Services, commented on the findings. "The numbers are bigger than many of the dark-fleet actors that we follow who are majors in their businesses," said David Tannenbaum, director of sanctions consultancy Blackstone Compliance Services and a former U.S. Treasury sanctions specialist.
Lloyd's List, a shipping magazine, reported previously that Maritime Mutual had covered a few tankers who had evaded sanction and revealed some details about its ownership and corporate structures. This is the first report to show the extent of shadow fleet use of Maritime Mutual, and the Western companies who support it by providing reinsurance to cover potential huge payouts.
New Zealand, in collaboration with Australia, Britain, and the United States, is investigating Maritime Mutual because they are concerned that it could have enabled the violation and failure of sanctions, and that the company failed to meet their obligations to prevent money laundering and terrorism funding. This investigation was not previously reported.
In a letter to Maritime Mutual, the company said that it "categorically denied" any conduct that violated international sanctions. It maintains a "zero tolerance policy" for sanction breaches, and operates under "rigorous standards of compliance designed to ensure full compliance with all applicable laws and regulation".
Maritime Mutual has not commented on the New Zealand investigation. Rankin, founder of the company, and his family did not respond to requests for comments.
Police search for maritime mutual offices
A second person familiar with the investigation confirmed that police in New Zealand conducted a search of Maritime Mutual's premises on 16 October as part of an investigation into alleged violations of Russian sanctions.
A person claimed that officers from the Financial Crime Group seized documents and files during searches of Maritime Mutual offices and residences in Auckland, Christchurch and Auckland. The police said that they had questioned three individuals, but there have not been any criminal charges filed.
The three individuals' identities could not be determined. Maritime Mutual confirmed that police entered their Auckland office on 16 October.
In a statement dated October 21, Maritime Mutual's New Zealand Branch said that its board had resolved the day before to not provide coverage for any vessels identified by shipping intelligence providers Windward or Lloyd's List to be in the shadow fleet nor for any vessel transporting Russian oil or refined petrol products.
The MMIA said that all of its activities were in compliance with the sanctions, and it took the decision because tankers require a disproportionate amount time for management and compliance.
Sanctions are violated when services, such as insurance, are provided to a vessel on a Western blacklist. Many Western governments forbid the provision of services to enable the sale and transport of banned Russian or Iranian oil products even if the ship itself hasn't been sanctioned.
Maritime Mutual did not come to any conclusions independent about the legality or otherwise of its activities.
Maritime Mutual had previously stated that it uses a detailed due diligence and onboarding procedure to screen shipowners, ultimate beneficial owner and vessels before granting insurance. The contract conditions, it said, require that any ship or owner found to be in violation of sanctions immediately loses coverage.
I was unable contact the owner and operator of the Yug (formerly known as Mur) via email. Maritime Mutual was not mentioned by government officials in Russia or Iran. Russia has claimed that Western sanctions are illegal, and Vladimir Putin has praised Moscow's success at circumventing these sanctions.
The company's operations are not fully reflected in the examination of Maritime Mutual. The news agency was unable to identify the hundreds of tanks it claims it covers.
Maritime Mutual, unlike most of its competitors, does not provide a means for the public check if a vessel has a cover. Maritime Mutual does not share this information with other major providers of shipping data, such as S&P Global Market Intelligence or Lloyd's List Intelligence.
Maritime Mutual has not commented on why it does not list the vessels that it insures, or share data with data providers.
Also, Maritime Mutual could not determine which clients it may have dropped because they were deemed to be in violation of sanctions. It refused to give a list of all vessels for whom cover had been terminated.
DEAD IN WATER WITHOUT INSURANCE
Maritime Mutual’s protection and indemnity policy, also known as the main insurance product offered by Maritime Mutual, does not cover either the vessel itself or its cargo. The ship and its owner are covered in the event that damage is accidentally caused to property, people or the environment.
P&I insurance for small tankers may cost as much as tens or even hundreds of thousands of dollars per year. However, according to industry sources, it can be more than $200,000 per vessel for large and old vessels depending on the age, size, and owner of the ship.
Tannenbaum says that P&I coverage is essential for shadow fleet vessels. He said that without P&I insurance, shadow fleet vessels are dead in the waters. Even Iranian and Russian ports won't allow uninsured vessels to enter their waters.
During an investigation published in January into the movement of Iranian crude oil around the globe, Maritime Mutual first discovered shipping documents that showed it had insured tankers transporting sanctioned petroleum.
It is not possible to provide a full list of clients. The list was compiled using a number of sources, including emails leaked from Iranian oil traders revealing their insurers; Russian port data and customs; company documents and shipping databases. The list was shared with the Centre for Research on Energy and Clean Air, a Helsinki-based think tank that tracks the energy industry.
CREA found that out of 231 vessels examined, 130 were carrying energy products from Iran or Russia after sanctions had been imposed against Tehran in November 2018, and Moscow in December 2020.
CREA, using commercial databases on individual oil trades as well as historical crude prices, calculated that vessels insured by Maritime Mutual shipped at least 18.2 billion dollars of Iranian oil and other energy products. They also estimated that $16.7 billion worth of Russian energy goods were transported since the sanctions went into effect.
Maritime Mutual often covered 30 or more oil tankers that were transporting Iranian and Russian products in a single day. On April 1, 2020, there were 41. CREA's calculations using the same databases.
Maritime Mutual has not commented on CREA figures. The insurer stated that it obtained attestations in its statement to ensure vessels transporting Russian oil were compliant with Western sanctions.
It said that "there is no cover for any ships which operate in a manner which does not comply with all applicable sanction regimes, or exposes MMIA in any other way to sanctions risks." This included the vessels mentioned in your inquiry, as well any vessel transporting Iranian oil.
Maritime Mutual has not responded to requests for copies of attestations. On October 15, the company announced that all of its insurance quotes now include a specific sanction warranty requiring clients ensure vessels are operated "in full compliance" with applicable sanctions regimes.
This language was found in an insurance certificate for a ship dated March 2025, but it wasn't in documents similar to those issued in 2022 and 2023 or in January 2024.
BLACKLISTED BY WEST
Maritime Mutual told the public in April that it insures 6,000 vessels. Tankers, which are vessels that carry liquid cargoes like crude oil, accounted for about 8% of this total. This is about 480 tanks.
The review revealed that many of the vessels covered by Maritime Mutual are sanctioned now.
Pole Star Global, an intelligence and data company specializing in maritime matters, reports that the United States, European Union, and other countries sanctioned 621 tankers from shadow fleets as of July 31.
Using Lloyd's List Intelligence Seasearcher, and the official sanctions databases, we identified 97 tanks under sanctions which had Maritime Mutual insurance, including 48 who were covered by Maritime Mutual on the day that they were blacklisted. It was not possible to determine if the remaining tankers had been insured by the company at the time they were blacklisted.
Maritime Mutual, when asked to comment on these findings, said that it had canceled coverage for 92 ships since 2022 due to sanctions.
Maritime Mutual refused to give a complete list of all the tankers they had insured.
Washington sanctioned a tanker Fenghuang owned by a Hong Kong-based company on 24 February 2025. The data revealed that exactly a week after arriving in the port of Nakhodka in eastern Russia, the ship formerly called the Phoenix I declared it was covered by Maritime Mutual.
Maritime Mutual stated that it began insuring Fenghuang's tanker on February 14, 2025 and cancelled coverage 10 days after the vessel was sanctioned.
Maritime Mutual's policies, as is common for marine insurers of all types, contain a clause that prohibits coverage of claims and members who put the insurer in danger by violating sanctions, according to their rule book.
In a statement to Maritime Mutual, the company said that insurance coverage will be automatically canceled if a vessel is deemed sanctioned.
Maritime Mutual covered at least one of their vessels for 61 companies, either directly or through affiliates. 61 of these companies were hit by sanctions while Maritime Mutual covered at least one vessel.
According to Russian port data, seven out of the eight tankers that were blacklisted declared having Maritime Mutual Insurance.
According to Russian port data, one of them, the Sunsea (formerly known as Chembulk-Tortola), reported that it had a Maritime Mutual Insurance policy which began several months after the sanctions were imposed.
Maritime Mutual stated that it began covering the Sunsea on May 20, 2023, over two months after Washington sanctioned it, due to an error in administration. The policy was cancelled when the error was discovered one month later.
It was either impossible to contact the owners and operators, the Fenghuang (formerly the Minerva Zenia), or they didn't respond to emails.
Maritime Mutual refused to disclose details about the tankers that it insured. This made it impossible to verify every Maritime Mutual policy. Many of the policies identified by were expired and could not be checked as the official shipping registry databases did not allow access to expired policies.
The news agency, however, was able check the validity seven documents issued by shipping registries that confirmed Maritime Mutual's insurance coverage for the vessels. According to official databases of the registries, all were genuine.
Western sanctions don't prohibit the export of Russian oil as long as it is sold below a certain price cap. The cap, originally set at $60 per barrel by 2022, was reduced to $47.60 in September by the majority of Western governments. The cap was designed to limit Russia’s Ukraine war fund while ensuring reliable supplies of Russian oil in order to prevent a spike in global energy costs.
Maritime Mutual could not determine with certainty whether the cap was breached by each Russian cargo that was shipped by a tanker covered by Maritime Mutual. Documents and government databases revealed that 30 tankers blacklisted for carrying Russian cargoes above the cap were covered by Maritime Mutual on the date they were blacklisted.
Maritime Mutual said that before its announcement on October 21, that it would no longer cover ships that carry Russian oil products, it carefully evaluated any vessel carrying Russian oil and obtained the necessary attestations to ensure it was in compliance with G7 oil prices cap.
According to the guidance regarding the Russian price cap, insurers must obtain attestations from parties involved in each oil transaction stating that they have complied.
Industry insiders claim that ensuring clients follow sanctions rules can be a difficult task. Neil Roberts is the chair of the International Union of Marine Insurance Policy Forum. He said that underwriters are relying on the clients' word and cannot know the contract price.
A senior manager of a major broker said that companies may be required to hire teams "to continuously monitor each and every one of our several thousand ships."
Global Fishing Watch (a non-profit organization that monitors human activities at sea) reports that vessels covered by Maritime Mutual and carrying Iranian or Russian crude oil often try to conceal their movements.
The analysis found 274 instances where ships insured by Maritime Mutual switched off their automatic identification system (AIS), which signals their location or manipulated it in order to send false tracking data - a common tactic known as spoofing - used by crews to camouflage their activities. Maritime Mutual did not comment on Global Fishing Watch's analysis.
Bjorn Bergman is an analyst at Global Fishing Watch. He said: "It's surprising that a company in a country that cooperates with U.S. sanctions and European sanctions, insures so many vessels spoofing positions."
International Maritime Organization (IMO) of the U.N. requires that large vessels traveling internationally use AIS. However, there are some safety exceptions. Bergman explained that enforcement is left to individual countries who register ships.
REINSURERS RISK SANCTIONS
Maritime Mutual, like other protection and indemnity insurances, spreads the risk that high payouts will result from accidents by reinsurance. Reinsurance is a system whereby insurance companies give a portion their profits to another insurer in exchange for assistance covering claims.
According to guidelines published by Western governments, reinsurers must comply with sanctions. Waleed Tahirkheli is the managing partner of Eldwick Law in London, a firm that specializes in sanctions. He said that Maritime Mutual's reinsurance companies could be subject to enforcement measures if their P&I policies cover ships that violate sanctions. Brokers who assist Maritime Mutual in arranging reinsurance could also face enforcement measures.
Maritime Mutual's site states that it is re-insured by Lloyd's of London members, which is one of the largest insurance markets in the world, with over 50 members.
According to those familiar with the reinsurance industry, Lloyd's members that have reinsured Maritime Mutual are the largest reinsurer in the world, Germany's Munich Re Group and its German counterpart Hannover Re as well as Britain's MS Amlin, Atrium and MS Amlin.
Aon, a major British-American insurer, and Lockton of America have acted as Maritime Mutual’s brokers. A person with direct experience in the industry confirmed this.
Atrium has confirmed that it reinsures Maritime Mutual. Aon, the broker, also confirmed that Maritime Mutual is a customer. MS Amlin stated that it reinsured Maritime Mutual, but terminated the relationship without giving details.
Hannover Re refused to comment on specific clients. It stated that it was committed to complying international sanctions, and had clauses in their contracts which prevented coverage for any sanctioned entity.
Arabella Ramage - legal and regulatory director of Lloyd's Market Association - declined to comment on Maritime Mutual's reinsurance via Lloyd's. She stated that Lloyd's does not have the authority to regulate reinsurance companies or access their contracts or sanctions screening systems.
Both Munich Re and Lloyd's of London declined to comment. Lockton stated that it takes its obligations to comply with sanctions very seriously, but was unable to comment on specific clients.
WOOING IRAN
Rankin established Maritime Mutual in Auckland, New Zealand, in 2004. He is a marine insurance veteran. According to a U.S. diplomatic leak, Japan accused Maritime Mutual of insuring North Korean vessels the following year.
According to a cable, Rankin informed a New Zealand official that the company no longer insures North Korean vessels. WikiLeaks published both cables. Maritime Mutual has not commented on the contents of these U.S. cable.
The North Korean mission at the United Nations, in New York, did not respond when asked for a comment. The Japanese transport ministry has said that it did not take any special measures against this company.
The Maritime Mutual Group is a family affair. According to the website, LinkedIn, and social media profiles of the company, two of Rankin’s daughters, Claire, and Sarah, as well as a son-in law, Steven Joyce are among its staff. Rankin, Agnes his wife, Claire, and Joyce are directors of Maritime Management Administration Services. This company is registered in British filings under the name Maritime Pacific Insurance Services.
No one from the Rankin Family responded to our requests for comment.
Six people familiar with the company said that Maritime Mutual's initial business was dominated by insuring smaller ships and older vessels at lower premiums compared to large P&I companies, who are known in the industry as "clubs".
Since then, the company's focus has changed. Eight sources in the shipping industry familiar with Maritime Mutual have said that it is placing a portion of its business on shadow fleets.
Maritime Mutual is affiliated with two companies in Dubai, MME Services (Maritime Mutual Services) and Maritime Reinsurance (Maritime Reinsurance). Three people have confirmed that the company performs a large part of its shadow fleet operations in Dubai. The Emirati authorities have not responded to our request for comment.
In 2016, two year before U.S. president Donald Trump reimposed the sanctions on Iran, Maritime Mutual – dubbed by some customers as "New Zealand P&I Club" – was wooing Iranian businesses.
On the website of Iranian shipping company Shiraz Marine, a Maritime Mutual slide show from that year highlighted the insurer's New Zealand office and its decades of experience.
Shiraz Marine was given "authority to promote the Association’s interests in the Islamic Republic of Iran" and to introduce members to be insured by Maritime Mutual, with effect as of January 23, 2017. This is according to a note on Shiraz Marine’s website that bears the Maritime Mutual Logo and Rankin’s signature.
Shiraz Marine has not responded to any emails requesting comment.
Trump reimposed U.S. oil sanctions against Iran in November 2018. Maritime Mutual saw its revenues soar as Western countries attempted to choke off Iran's oil exports and later, Russian ones.
According to New Zealand company filings, its insurance sales increased 9.5% per year on average from 2011 to 2018. This amounted to $14.2 million. After the U.S. imposed sanctions on Iran in 2019, its revenue increased by 41% per year, on average. It reached $108.5 million at the end of last year.
In 2023, after the Russian sanctions had been imposed for a full year, revenue growth reached a peak of 60%. Iran's oil sales also soared to $42 Billion in that year, near the levels prior to sanctions taking effect, according U.S. Energy Information Administration estimations.
Shiraz Marine, a shipping company in Iran, posted on Instagram in Farsi that it is the "official representative" of the New Zealand P&I Club (MMI) for Iran.
Maritime Mutual strongly denied that it actively sought shadow fleet business in response to questions. The company said that the significant increase in large ships covered by the firm after reinsurers removed restrictions on vessel size was a major driver of its revenue growth in 2019.
Maritime Mutual did not pay any insurance claims to sanctioned ships or their owners or to vessels that carried Russian or Iranian oil products.
NEW ZEALAND LAUNCHES AN INVESTIGATION
Maritime Mutual was not under the jurisdiction of New Zealand’s insurance regulators for two decades because it did not have a license to sell insurance to New Zealanders or any other entities based in that country.
On October 8, 2024 an email from a member in the maritime industry of New Zealand was delivered to the central bank governor. The email asked for the regulator to investigate Maritime Mutual, because it was using New Zealand as a "facade of respectability" to give the company a good image.
The bank responded a day after: "Acknowledging reception." The team will keep you informed."
The exchange was shown under the condition that the sender of the email would not be revealed.
Sources with direct knowledge of this investigation have confirmed that the central bank is investigating Maritime Mutual because they are concerned it could have allowed the violation of sanctions and failed to take the appropriate measures to guard against terrorism funding. They also believe Maritime Mutual may be misrepresenting itself as a regulated insurance company in New Zealand.
Maritime Mutual has not commented on the investigation, or the concerns raised by the authorities.
In February 2024, New Zealand joined the Western Coalition to enforce the Russian price cap. New Zealand may not specifically target Iranian oil, but it has reimposed sanctions against Tehran this month, which requires anyone who deals with Iran to be vigilant. This includes the oil sector.
A spokesperson for New Zealand’s Foreign Minister said that it would not disclose details of alleged noncompliance with Russian sanction, but confirmed that agencies were working with Maritime Mutual in "regulatory issues".
The Foreign Ministry said that it expects all New Zealanders to comply with the law, no matter where they are located or what services they offer. The central bank's spokesperson declined to comment about its enforcement activities.
According to a person who has direct knowledge of the investigation, investigators in New Zealand work with international partners including Australia, Britain, and the United States.
Requests for comments were not responded to by the U.S. Treasury or its Office of Foreign Assets Control (the agency that enforces economic and trade sanctions on Iran and Russia). The U.S. Department of Justice, as well as the European Union, declined to comment. The Australian Department of Foreign Affairs and Trade confirmed that it was aware of the concerns regarding Maritime Mutual, but declined to comment on matters of sanctions compliance.
The British Treasury refused to respond when asked if they were investigating Maritime Mutual. The Treasury refused to provide information about Maritime Mutual’s compliance with UK sanctions against Iran and Russia.
The release of this information could have a negative impact on Britain's relationship with other countries and members of the coalition that enforces the Russian price cap. The disclosure could provide some context as to the extent of Russian and Iranian sanctions being evaded.
The British Treasury stated that "releasing the information could aid criminals in their intent to circumvent or evade."
The company did not provide any further information.
(source: Reuters)