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Vietnam prepares for flight reductions from April, after China and Thailand ban jet-fuel exports
Vietnam's authorities warned that the aviation industry should prepare for possible flight reductions in April, after China and Thailand stopped exports of jet-fuel due to the?Iran war. This increased the likelihood of shortages. Vietnam imports 60% of its jet-fuel needs from China and Thailand. Documents from the aviation regulator, and importers, seen by. In a document sent on March 9, the Civil Aviation Authority of Vietnam warned that there was a risk of jet fuel shortages in the months to come for Vietnamese airlines. The report said that airlines should review their plans and, in particular, domestic routes. It also instructed airport operators to provide additional parking spaces for Vietnamese carriers, "in the event they are forced to reduce operations due to a lack of aviation fuel." The document also showed that Singapore has reduced its supplies to Vietnam. Petrolimex, a major importer, and Skypec, a major supplier, both viewed separate documents by. Both said they could only guarantee jet-fuel supplies for March. They warned that April contracts might not be met by suppliers. Skypec asked the regulator to limit air travel to only essential domestic routes, if the conflict continues. All documents were released after China asked its refiners to refuse new exports in the early part of this month. This was before a ban on refined fuels exports that began March 11. Thailand banned the export of fuel oil to all countries, except Myanmar and Laos, on March 6. The regulator, ministry and two importers did not respond to comments. Vietnam Airlines, VietJet and other major airlines in Vietnam declined to comment. DIPLOMATIC EFFORTS MADE According to Chinese customs data, Vietnam was the third largest buyer of aviation fuel from China in last year's figures after Australia and Japan. The Southeast Asian nation has raised the issue both with China, its principal supplier, as well as Thailand. According to a Vietnamese news portal, Le Hoai Trung, the Foreign Minister, asked his Chinese counterpart Wang Yi, for close coordination, "to ensure energy safety," during a long-planned meeting in Hanoi. The Chinese summary of the meeting did not mention energy security. State media reported that Pham Minh Chinh, the Prime Minister of Vietnam, asked Thailand on Friday to assist in addressing the shortage at a meeting he had with the Thai Ambassador in Vietnam. Requests for comment from the foreign ministers of Vietnam, China and Thailand were not immediately responded to. In its document, the Vietnam Aviation Authority noted that "in this context it is hard to find new suppliers." The report also said that Vietnam's two refineries were under pressure to expand their production of other oil-based products, which made it difficult for them increase their jet fuel output. The report also noted that even if fuel supply stabilizes, the rising prices of fuel will disrupt the industry. According to a March document sent to the aviation regulator, local?airline Sun PhuQuoc Airways intends to "adjust" flight schedules in the coming months because of the volatility in?fuel prices. The company has not responded to a comment request. The documents show that Petrolimex, Skypec and other companies have also indicated the increase in jet fuel prices and the consequent 'limitation of credit lines. They have urged the banks to provide more flexible financing till market conditions normalise. LSEG data show that front-month jet-fuel paper swaps are currently trading in Singapore at $157 a barrel, which is more than 1.5 times the price of pre-conflict levels.
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Dubai Media Office reports that a fire breaks out near Dubai International Airport following a drone attack.
The 'Dubai Media Office' said on Monday that authorities are?dealing?with a??fire? resulting??? from a drone attack near the Dubai International Airport. They added that there were no reported injuries. Dubai authorities stated that the drone attack had hit a fuel tank, and civil defence teams are working to control the fire. Gulf Arab states have been subjected to more than 2,000'missile and drone attacks' since the U.S. and Israeli war against Iran began on February 28. These include U.S. military bases and diplomatic missions, but also vital Gulf oil infrastructure and ports, airports and hotels, as well as residential and office buildings. The United Arab Emirates - which normalised its relations with Iran's arch enemy Israel in 2020 - has been the most affected by?the attacks. All Gulf Arab countries have been affected and have condemned Iran.
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Sources: China relaxes BHP iron-ore ban for a week
Sources said on Friday that China will ease the ban on BHP's Jimblebar Fines, an iron-ore product, until next week. This comes only one day after Beijing tightened restrictions on its third largest supplier. China Mineral Resources Group (the state-run iron ore purchaser) told domestic steelmills they could take "delivery of Jimblebar fins already at port for around a week," said three sources who were familiar with the matter, but on condition of anonymity because of the sensitive nature of the issue. Steelmakers and traders are excluded from the exception. CMRG?barred? steelmakers and traders? from purchasing Jimblebar?fines in September and has progressively increased its restrictions. Most recently, this week, it is negotiating the terms of BHP’s 2026 supply agreement. Iron ore prices reached a two-month high on Friday as traders feared further bans could limit the iron ore supply at ports. The temporary reprieve highlights CMRG's?challenge? in lowering prices, when its primary tool is to remove supply from the market. One of the sources said that "the move is to reinin iron ore price rally." CMRG and BHPB did not respond immediately to requests for comments outside of normal working hours. Louise Heavens, News (reporting)
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Honda's $15,7 billion writedown on EVs is painful but China problems loom in the future
Honda's $15 billion write-down of its electric vehicles business is more than just a painful reversal in its U.S. strategy. It also shows that it will face even greater challenges from China where it faces an ever-widening technology gap. The second largest automaker in Japan announced on Thursday that it will restructure its electric vehicle business, primarily in the U.S., and write off some Chinese operations. This could cost an estimated?2.5 trillion dollars. It also said that it would report its first loss as a publicly listed company in nearly 70 years. It announced that it would cancel the three battery-powered models planned for the U.S. where demand for electric vehicles has plummeted since President Donald Trump cut subsidies. Honda sold 84,000 battery-powered vehicles last year, just 2.5% of its 3.4 million global vehicle sales. According to Christopher Richter, an automotive analyst at CLSA, the scale of the write-down reflects Honda's massive investments in research and production capacity, as it sought to sell more EVs. He said that the automaker should have acted faster to halt this investment when Trump returned to power. He said, "They took far too long to think about this." "They cancelled these projects almost on the eve before they were released." Honda unveiled its first two concept models of the "Honda 0 Series" in Las Vegas, including the Saloon Sedan, in January 2024. It had planned to launch the first vehicle in the series this year in North America. These plans have now been scrapped. The company has cancelled the three models which were to be produced in the U.S. The company will experience cash outflows up to 1.7 trillion Japanese yen as part of the financial hit. This is largely because of the costs of compensating its suppliers. Seiji Sugiura is a senior analyst with Tokai Tokyo Intelligence Laboratory (the research arm of Tokai Tokyo Securities) and he wrote to clients that he was "shocked by the scale" of this writedown. This decision was made at a time when it was very difficult, before mass production and after significant budgets were already committed. It was an extremely tough call. Honda is now pivoting to hybrids in America?and will be looking to strengthen its lineup and cost-competitiveness in India where it believes it could expand. CHINA'S PERFORMANCE SIGNS DEEPER EV TRUUBLES Honda may be putting behind them the worst, but fixing their China business could prove to be a greater challenge. The automaker said it was unable to compete with the newer Chinese companies, primarily because of their shorter development cycles, and?their strengths in software-driven cars, including advanced driver assistance systems. Honda said that in a competitive environment that was so difficult, it had been unable to produce products that were more cost-effective than those of the newer EV manufacturers. This resulted in a decrease in competitiveness. Vincent Sun, senior analyst at Morningstar said that there is uncertainty regarding Honda's ability to meet the technology challenge in the long-term. He said, "The move raises concerns about Honda's long-term technological competitiveness." Honda launched several battery-powered vehicles in China, the largest auto market in the world, but only sold 17,000 of them last year. This is just 2.5% of the 677,000 cars it sold there and just a fifth of the global total of electric vehicles. Analysts said that Sony Honda Mobility - the joint venture between Honda and Sony Group to develop the Afeela sedan - could also pose a risk. Honda announced on Thursday that the direction of its joint venture is being discussed but no decision has been made.
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US airline CEOs call on Congress to resolve the standoff and pay airport security personnel
Chief executive officers from major U.S. Airlines urged Congress to act quickly on Sunday to end the?29-day partial shutdown of the government that has forced 50,000 airport?security?officers to work without being paid, warning this could further disrupt U.S. airline travel. Travel at major airports has been disrupted by the absence of Transportation Security Administration (TSA) officers in the past week. This is alarming as spring break travel continues. In an open letter sent to Congress, the CEOs of American Airlines and United Airlines, as well as those from Southwest Airlines, JetBlue Airways, Alaska Air, Delta Air Lines and other airlines, wrote that "too many travelers have to wait in painfully long lines at checkpoints." First, the leaders must immediately reach an agreement on funding for Homeland Security. They added that they needed to take action so the problem would never happen again. A 43-day shutdown of the government in fall 2017 caused widespread flight disruptions. The FAA then ordered 10% flight cuts at major airports. "Once again, air travel is the political ball amid another government shut down," wrote the CEOs. The group of airline executives, which includes senior executives from cargo carriers such as FedEx, UPS, and Atlas Air, called for legislation that would ensure critical government aviation staff are paid during future shutdowns. Both parties of the Senate failed to reach an agreement on funding the TSA last Thursday, despite the fact that the TSA reported last week the resignation of more than 300 officers since the shutdown began. Homeland Security Department funding expired on February 13, after Congress failed in its efforts to reach an agreement on immigration enforcement reforms requested by Democrats. "We're going to make it through this." Sean Duffy, U.S. Transport Secretary, said on Fox News Channel "Sunday Morning Futures" that he believes Democrats will come to their senses. Duffy hopes that Democrats will not wait for Americans to be hurt or killed before putting your security before those who have entered the country illegally. The airlines are anticipating a record spring travel period. 171 million passengers will fly during this period, an increase of 4% over the same two-month period in last year. Some airports, like Houston Hobby, New Orleans, and Newark, reported security lines that exceeded two hours last week as TSA absences increased. On Saturday, Newark announced it was experiencing longer than normal delays. The CEOs wrote: "Americans in your districts and home states are tired of the long lines, travel delays and cancellations that result from a'shutdown after shutdown. Airports are closing security checkpoints, and raising money to pay TSA employees for food and other necessities while they work without pay. Reporting by David Shepardson, Additional reporting in New York by Gertrude Chavez Dreyfuss; Editing and Jamie Freed by Diane Craft and Jamie Freed
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Iraq claims Kurdish authorities refuse to allow it to send oil through their pipeline
The Iraqi 'oil ministry' said that the Kurdistan Regional Government?refused it to use a pipeline for an alternative route for crude shipments disrupted by?the Iran _conflict. It accused authorities in Kurdistan of placing irrelevant conditions. Senior Kurdish officials told authorities that they would welcome the Iraqi government using the pipeline. However, Baghdad must first lift its "dollar embargo", which he called on the region. "We want to make a deal." "We want to help Iraq, and bring relief? to the markets. But this embargo has got to end first," said the official. Sources told The Daily Mail on 8 March that oil production in Iraq's southern oilfields has fallen 70%, to just 1.3 million barrels per day, as the Iran conflict has effectively closed off the Strait of Hormuz. Iraq's Oil Ministry sent a letter to the Kurdistan Regional Government in early March asking for permission to pump 100,000 barrels of crude oil per day from the Kirkuk oilfields to Turkey's Ceyhan Energy Hub through the Kurdistan Pipeline Network, according to two oil officials last week. The Kurdish official stated that they were pressing to end what he said was a ban on the region’s banks being able to access dollars for importing goods through its borders and airports. Kurdish officials claim that tensions have increased with Baghdad after the federal government implemented a new electronic system to monitor imports and revenue. The KRG views this as a move undermining their autonomy and control over trade. Iraq's Oil Ministry said that the?Kurdistan Regional Government’s Ministry of Natural Resources had "set up a number conditions unrelated to crude oil exports." Reporting by Muhammad Al Gebaly; Editing by Andrew Heavens
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After a terminal attack, an Indian vessel leaves Fujairah in the UAE
India's Government said that an Indian flagged vessel, loaded with 80.800 metric tonnes of Murban oil from the United Arab Emirates, left Fujairah on Sunday. This was a day after sources reported that'some loading operations were suspended' at the UAE port. Sources said that oil loading operations in the UAE's Fujairah, a major hub for bunkering and crude export, have resumed following a Saturday drone attack and fire. However, it is unclear whether the operations are back to normal. India's Ministry of Petroleum and Natural Gas stated that the vessel, Jag Laadki was loading oil at Single Point Mooring when Fujairah Terminal was attacked. The statement stated that the vessel and all Indians on board were safe. Fujairah is outside the Strait of Hormuz and the "outlet" for UAE Murban crude oil. This volume is equal to 1% of global demand. Since the United States, Israel and other countries began a bombing on Iran in February, Tehran has stopped traffic through the Strait. The strait runs past its coast. Around 20% of the world's oil and seaborne natural gas are supplied through it. A spokesperson for the Indian foreign ministry said that India has sought safe passage to 22 of its vessels, which are stranded in the Strait of Hormuz west of Iran. This comes after Iran granted a few Indian ships a rare exception to their blockade. Two Indian flagged LPG carriers carrying 92,712 tons of LPG each, Shivalik Nanda De, and headed to India, both crossed the Strait of Hormuz Saturday. The ships are expected to arrive in Mundra, India on March 16, and Kandla, India on March 17. (Reporting and editing by Aide Lewis in Mumbai, Vibhuti sharma)
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US airline CEOs call on Congress to resolve the standoff and pay airport security personnel
The CEOs from major U.S. Airlines urged Congress to act quickly on Sunday to end the 29-day partial shutdown of the government that has forced 50,000 security officers at airports to work without being paid, warning it could disrupt U.S. air travel. Travel disruptions at major airports due to the absence of Transportation Security Administration? officers have been occurring for the past week. This is alarming, as spring break travel continues. In an open letter addressed to Congress, the CEOs of American Airlines, United Airlines, Delta Air Lines, Southwest Airlines, JetBlue Airlines, Alaska Air, and other airlines wrote: "Too many travellers are waiting in extremely long and painfully slow lines at checkpoints." First, they should come together to agree on funding the Department of Homeland Security. They added that they needed to take action so this problem would never happen again. A 43-day shutdown of the government caused widespread flight disruptions last fall. The FAA then ordered a 10% cut in flights at major airports. "Once more, air travel is the political football amid another government shut down," wrote CEOs. The group of airline executives, which includes senior executives from FedEx, UPS, and Atlas Air, called for legislation that would ensure critical government aviation staff are paid during future shutdowns. Both parties of senators failed to succeed in their competing attempts on Thursday to fund the TSA. The TSA reported last week that over 300 officers had quit since the shutdown started. Homeland Security Department funding expired on February 13, after Congress failed in its efforts to reach an agreement on the immigration enforcement reforms that Democrats demanded. The airlines are anticipating a record spring travel period. 171 million passengers will fly during this period, an increase of 4% over the same period last year. Some airports, like Houston Hobby,?New Orleans, and Newark, reported that security lines were longer than two hours last week as TSA absences increased. On Saturday, Newark also said it experienced higher-than-normal delay. The CEOs wrote: "Americans in your districts and states are tired of the?long queues at airports?, travel delays?and flight cancellations? caused by shutdowns after shutdowns? Some airports have closed security checkpoints, while others are raising money to pay TSA workers for food and other necessities. (Reporting and editing by Jamie Freed; David Shepardson)
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)