Wright, speaking at a Citadel Securities event in New York on October 19, said Washington is working with investors who buy idle sanctioned tankers, repair them and put them into lawful trade. He rejected the suggestion that the US is simply lifting sanctions on shadow-fleet vessels.
"We are going to move some ships from what I call the 'fleet of bad guys' to the 'fleet of good guys.' They will no longer carry sanctioned oil," Wright said. "We are turning 'dark' tankers into legal ones. No sanctions are being lifted."
Wright estimated the global shadow fleet at about 1,600 vessels. The administration's efforts could add "dozens" or even "hundreds" of tankers to the legal fleet, he said.
The measure is intended to increase the number of ships available to transport crude and to raise supply volumes that have fallen because of the war against Iran and the blockade of the Strait of Hormuz. The Financial Times reported earlier in October that the US was considering easing restrictions on shadow-fleet tankers linked to Russia and Iran, in particular allowing their sale to bona fide shipowners. The newspaper said the Trump administration expects the measures to help lower sharply rising diesel prices ahead of December midterm elections.
Industry experts are skeptical about the measure's effectiveness, Bloomberg reported. In their view, existing contracts, complex checks involved in bringing tankers into legal status and sky-high freight rates reduce the incentive for potential sellers and buyers. A single supertanker voyage through the Strait of Hormuz can earn up to $40 million. By comparison, in early October a 10-year-old vessel could be sold for $190 million, meaning its owner need only make five voyages to earn more than a sale would bring.
Rahul Kapoor, global head of shipping analytics at S&P Global Energy, noted that lifting sanctions does not mean usable tanker capacity will immediately appear on the legal market. The number of vessels that can actually return to such trade is likely to be far smaller than the overall size of the sanctioned fleet.