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US rail regulator finds merger application between Union Pacific and Norfolk Southern incomplete
The U.S. Surface Transportation Board sent Union Pacific's $85 billion merger proposal with Norfolk Southern back to be revised on Friday, saying that it was missing required information. This is part of an ongoing review by the U.S. The STB rejected the application in December, citing a lack of projections on market share and competition impacts. The board denied the application without prejudice and allowed the railroads to re-file once they addressed the deficiencies. Donald Trump publicly supported the merger proposal. The administration tends to 'approve large transactions or impose remedy rather than blocking them outright. A merger of this magnitude was considered unthinkable during the Biden administration's broader crackdown against consolidation. This is the first major proposed?merger of railroads to be reviewed using the more stringent framework that was put in place over?two decades ago. The stricter framework?requires applicants?to prove their transaction will enhance competition, not just preserve it?while delivering demonstrable benefits to the public?interest? The board stated that the railroads had projected growth in traffic and divertions from the proposed coast to coast railroad, but only provided data for 2023, not the projections required showing how the combined carrier’s?share could evolve several years after the merger. The decision follows a filing in January by Canadian National. It argued that there were critical 'competitive disclosures' missing from the application, including a methodology to identify routes where two rails feed into one another and complete lists of 'potentially affected shippers'. Union Pacific and Norfolk Southern submitted their nearly 7,000-page application to the Federal Communications Commission on December 19. They claimed that this combination would increase?service reliability?, divert truck freight onto rails, maintain shipper options, and provide broad public benefits, while protecting union jobs. The STB stated that the ruling it issued should not be interpreted as a guideline for how it would ultimately determine whether a revised application was admissible.
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PJM announces plan to combat AI-driven surge in power demand
Grid operator PJM Interconnection unveiled a plan on Friday to manage'surging power 'demand from data centres that are required for Big Tech’s artificial intelligence expansion. This comes after the White House urged immediate action to avoid potential blackouts. PJM Interconnection announced that it plans to require large power users?to either bring their own generation or?enter a connect-and-manage framework subject to an early curtailment. The White House had earlier in the day urged the largest U.S. power grid to conduct an emergency auction to prevent rolling blackouts, as the energy demand for data centers is growing faster than the nation can build new generation facilities. PJM controls a large part of the 'power flow' in 13 states, mainly in the Mid-Atlantic region, including the 'largest concentration in data centers, in Virginia. Other?states are also becoming hubs for server storage. PJM’s board stated that its plan 'would focus on bringing a new?power generator online quickly, and would be coupled to options for new load customers whose energy demand can be curtailed if necessary. Reporting by Laila Mukherjee and Anushree Mokherjee from New York; Editing by Leroy Leo, Lisa Shumaker
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White House wants to auction off the largest US electric grid in an emergency
The White House urged on Friday the largest 'U.S. The electric grid should conduct an auction for emergency power to prevent rolling blackouts, as the energy demand from?data centres? is growing faster than new generation plants can be built. The Trump Administration initiative calls for PJM Interconnection, a company that serves 67,000,000 customers across 13 states, including Washington, D.C., and conducts an emergency auction to address escalating prices of electricity and increasing reliability risks in the mid-Atlantic area of the United States. PJM announced its own plan on Friday, urging big data centers that they bring in their own generation to avoid having their power supply curtailed at peak demand times. Grid operator PJM also called for a faster interconnection track to be created for state-sponsored projects. At a White House meeting, U.S. Secretary of Energy Chris Wright, and Secretary of Interior Doug Burgum, joined by several state governors, discussed initiatives to accelerate the construction of new?power generators worth more than $15 billion on PJM. PJM has been criticized as being too slow in building a cushion to prevent rotating blackouts when demand increases. The rapid expansion of data centres to power artificial intelligence and other things has stretched PJM's resources, as well as those of other regional U.S. electrical grids. Donald Trump wants to fight consumer price inflation, which could undermine Republican support ahead of the November midterm elections. The White House wants to cap the amount that existing power plants are allowed to charge on the PJM market. The recent PJM auction for the capacity market set new records for power generators, with prices more than 800% above those of last year. This increased electricity prices in homes and businesses. Data centers would be required to pay for new power generation, whether or not they use it. This agreement would require them to do this regardless of whether the data center shows up. BYOG is the concept, which stands for "bring you own generation." PJM said it was reviewing the principles laid out by the White House, and the governors. A PJM spokesperson confirmed that PJM had not been invited to the event. PJM forecasts that grid peak usage during the summer will increase by?about?70 gigawatts up to 220 gigawatts in the next 15years. PJM's record summer peak was 165 Gigawatts. PJM claims that it has?processed more than 170 gigawatts in new generation requests since 2023. Nearly 60 gigawatts have been completed by PJM and either signed generation interconnection agreements or have been offered. RISE IN POWER BILLS HAS?LED TO BACKLASH The rising cost of electricity in PJM region has led to a political backlash and threats from some governors that they will abandon the regional grid. Nine state governors sent an open letter last summer to the PJM Board of Managers criticizing the grid operators for not doing enough 'to address the escalating energy affordability crisis. Pennsylvania Governor Josh Shapiro told the White House on Friday that PJM had been "too damn slow" to allow new generation onto their grid, at a time when energy demand was increasing. Burgum said PJM was lucky to have avoided widespread blackouts so far. Reporting by Jarrett Renshaw, Tim McLaughlin and Timothy Gardner from Philadelphia; editing by Liz Hampton and Matthew Lewis
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Florida road added to Trump's list
The U.S. president Donald Trump renamed a road near his private club in Palm Beach in Florida. This is the latest addition to the 'growing list' of programs, initiatives, and buildings that bear?his? name since he took office in January. The state legislature approved a new honorific name for a part of Southern Boulevard. This road connects Palm Beach International Airport with Mar-a-Lago - Trump's residence and private club. The president's motorcade frequently uses this road to travel between the airport, and Trump's property. Trump described himself as "tremendously honoured" by the recognition. He said: "I will remember this amazing gesture forever." County commissioners have told local media that the name change will not affect official addresses, emergency response system, or government maps. Since re-entering office a year ago, his name has appeared on high-profile Washington structures, a new proposed class of Navy warships and a website for prescription drugs run by the government. Washington is home to many monuments and buildings named after presidents. These honors are often national tributes and authorized by Congress. Trump received the Nobel Peace Prize Medal from Venezuelan opposition leader Maria Corina Machado at a White House Meeting on Thursday. The White House said that Trump intends to keep his medal. However, the Norwegian Nobel Committee stated that the prize could not be transferred, shared or revoked. Some historians see it as an?overficial attempt of the president to cement a legacy that could prove short-lived. Several performers have withdrawn in protest over the renaming Washington's premier performing arts venue to the Donald J. Trump Memorial Center for the Performing Arts and John F. Kennedy Memorial Center for the Performing Arts.
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FAA warns airlines flying to Central and South America about possible military actions
The U.S. Federal Aviation Administration issued a series warnings on Friday to airlines to be cautious when flying over Central America and parts of South America. It cited the risk of possible military activities and GPS interferance. The FAA has issued Notices to Airmen for Mexico, Central America, Ecuador, Colombia, and certain portions of the eastern Pacific Ocean. The agency said that the warnings will begin on Friday and last for 60 days. These warnings are coming amid increased tensions in the region between the United States, and other regional leaders, after the Trump administration?mounted a large-scale buildup of military forces in the southern Caribbean and attacked Venezuela, and captured the country's President, Nicolas Maduro, in a military action. Donald Trump raised the 'possibility of other military action? in the region, including against Colombia. Trump warned last week that drug cartels controlled Mexico, and that the U.S. would strike land targets in order to combat them. This was part of a series threats to use military force to fight against cartels. The FAA curbed flight throughout the Caribbean after the attack on Venezuela. This forced major airlines to cancel hundreds of flights. FAA Administrator Bryan Bedford said earlier this week that there was good coordination between the FAA and the U.S. Military before the Venezuela operation. Last month, JetBlue's (JBLU.O), a passenger jet headed for New York, took evasive action to avoid colliding with a U.S. military plane in mid-air. Air Force tanker plane near Venezuela. JetBlue Flight 1112 was departing Curacao and flying approximately 40 miles (64km) off the coast Venezuela when an Airbus plane, (AIR.PA), reported that it had encountered the Air Force jet. The Air Force jet's transponder wasn't activated.
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European regulator warns airlines against flying in Iranian airspace
After simmering tensions arose over the 'deadly crackdown' on Iranian protests, and U.S. threats of 'intervention', the European Union's aviation regulator recommended that airlines in its bloc'stay out' of Iran's 'airspace'. In a bulletin, the European Union Aviation Safety Agency stated that "the presence and potential use of a variety of weapons and air defence systems combined with unpredictable responses from states... creates high risks for civil flights at all levels and altitudes." The protests began in Iran on December 28 due to economic hardships. They grew into large demonstrations demanding the end of the clerical regime, which culminated in violence last week. Crackdown on the crackdown It is a verb that means to have Residents said that the protests have been largely quelled for the time being, while state media reported more arrests, in light of the repeated U.S. threat to intervene should the killings continue. EASA's warning said that due to the ongoing tensions, and the possibility of U.S. military intervention, Iranian air defence forces are on high alert. This has increased the likelihood of misidentification in Iranian airspace. Reopened After a nearly five-hour-long closure due to fears of military action, airlines were forced to cancel or delay flights. According to flight tracking data, European airlines such as Wizz Air and British Airways, Lufthansa, and British Airways, continued to avoid Iran and Iraq despite the re-opening of airspace on Thursday. A surface-to air missile fired by Iran in January 2020 brought down a plane. Ukrainian passenger plane All 176 victims were killed abroad. The Iranian authorities blamed human error for the incident, which occurred amid tensions between Iran's military and that of the United States. Reporting by Gursimran K. Kaur, Editing by Mark Potter & Cynthia Osterman
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Musk and Ryanair CEO clash about cost of Starlink Wi-Fi
Elon Musk called Ryanair CEO Michael O'Leary on Friday an "utter idiot", who should be fired. The spat began when?the airline chief refused to install Musk's Starlink?internet on Ryanair planes. O'Leary dismissed on Wednesday the idea of equipping Ryanair's 600+ jets with Musk's Starlink. Citing the fuel cost impact from the drag caused by the antenna, O'Leary estimated that the service could cost the airlines as much as $250 million per year. Musk replied on his social media platform X by claiming that O'Leary had been "misinformed", and arguing Ryanair didn't know how to measure?fuel consumption of Starlink equipment. During a later interview with Irish?radio Station Newstalk, he said that Musk knew "zero", about drag and aviation, and called the U.S. millionaire "idiot." He also described X as a 'cesspit'. Musk, whose SpaceX company operates Starlink on Friday, responded. "Ryanair's CEO is a complete idiot." Fire him." Musk?posted a message on X. Musk responded, "Good idea." When a fan suggested Musk buy Ryanair to replace O'Leary with himself. Starlink is a network that uses thousands of satellites in low-Earth-orbit to deliver faster and more reliable WiFi onboard aircraft. Starlink is being rolled out by more than a dozen airlines, including United Airlines and Qatar Airways. Analysts believe that Starlink is a premium offering, which will appeal to full-service and long-haul airlines. Financial terms are not disclosed. (Reporting and editing by Alistair Bell; Reporting by Joe Brock)
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WestJet will no longer offer non-reclinable seats in its economy class after complaints
WestJet Airlines announced on Friday that it would eliminate non-reclinable seats in economy class on a number of Boeing 737 aircraft. This decision was made after a slew complaints and 'videos posted on social media of passengers with their knees pressed against the seat ahead. After reviewing data from operations and the feedback of travelers, the Canadian carrier announced in a press release that it would return to its previous standard economy seat configuration. WestJet's decision to reconfigure seats in its planes last year?to allow for larger premium seating at the front?was widely seen as a test on the limits of the add-on culture. Economy seats that can be adjusted are still available, but they cost extra. The videos of passengers with cramped leg problems were posted on social media in January, even though WestJet, owned by Onex Corp. and WestJet, had paused their rollout last month. The pitch (the space between rows of seats) was reduced from 30 inches to 28 inches in order to accommodate an additional row of seating. WestJet CEO Alexis von Hoensbroech said in a statement that the airline tried to offer seat pitches which are used by many airlines worldwide. They do this because they provide low-cost airfares. "At the?same time, it's just as important to respond quickly if the seat pitches don't meet our guests needs." Pilots and flight attendants also reacted negatively to the move, voicing concerns about comfort and safety. They also questioned whether passengers could safely escape from a plane in an emergency. Alia Hussain is the president of the union local that represents WestJet cabin staff. She said she was pleased with WestJet’s decision to "reverse course" on Friday. Flight attendants received numerous complaints from angry travelers and had to move some tall passengers' seats in some cases. She said, "It created an hostile working environment for cabin staff." (Allison Lampert, Montreal; Editing and design by Chris Reese).
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)