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China Oil Port to Ban Shadow Fleet

According to a notice from the terminal operators of a major oil-port in East China's Shandong Province, they plan to implement measures to stop shadow fleet vessels visiting and to limit visits by old tankers.

The measures will come into effect on November 1 and ban ships older than 31 years old, as well as vessels with fake International Maritime Organization (IMO) numbers. Traders said that this would be a direct attack on the so-called shadow fleet, which transports oil in violation of Western sanctions.

The notice was issued by four terminal operators in Huangdao Port, last week. It came a month after an oil terminal at Dongjiakou Port, near Huangdao, had been designated by the United States as receiving Iranian crude oil transported by ships under sanctions.

Huangdao, as well as Dongjiakou, are both located in the larger Qingdao Port area. This is the main Chinese entry point for Iranian Oil. China, Iran's largest oil client, has repeatedly defended oil transactions with Iran, and opposed unilateral Western sanction.

NO IMMEDIATE REACTION

Qingdao Shihua has not commented on the incident yet, nor have any of the three other companies been contacted.

The new risk-rating regulations for tankers appear to be a preventative step, driven by rising U.S. pressure on sanctions, even though this isn't explicitly stated in the notice," said Emma Li. She works as a China analyst at tanker tracking company Vortexa Analytics.

Li said that the impact of this is likely to be minimal, as Huangdao plays a relatively minor role in handling tankers with high risk compared to other Shandong port.

According to the document we reviewed, vessels with invalid or expired certificates issued by various international agencies and those who have a history of pollution or accidents in the past three years are also barred from calling.

Terminal operators will also introduce a scoring system to rate the level of risk for vessels: the older the ship, the lower its score. A vessel rated at 55 or less will not be allowed to anchor if the terminal operator gives it a 100-point score.

Document shows that the scoring system takes into consideration the classification society of a vessel and its pollution liability coverage.

Terminal operators include Qingdao Haiye Oil Terminal Co., Qingdao Shihua Crude Oil Terminal Co., Qingdao Gangxin Oil Products Co. and Qingdao Lixing Logistics Co.

(source: Reuters)