Tanker Collision Near Singapore Sparks Insurance Complications Amid Sanctions

A recent collision between the Singapore-flagged Hafnia Nile and the Sao Tome and Principe-flagged Ceres I near Singapore raises complex insurance issues. The involvement of the Ceres I, which has a history of carrying Iranian crude, may complicate claims due to Western sanctions. No oil spill was detected, but the situation highlights the risks posed by the shadow fleet transporting sanctioned oil.

The recent collision between two tankers off Singapore raises significant questions over insurance claims and sanctions. The incident involved the Singapore-flagged Hafnia Nile and the Sao Tome and Principe-flagged Ceres I, with no immediate oil spill detected.

Complications arise due to Ceres I's history of carrying Iranian crude oil, potentially affecting claims under Western sanctions. Industry experts noted this could be the first collision involving a vessel associated with the shadow fleet under sanctions.

Insurance coverage complexities, including Protection and Indemnity (P&I) insurance, hull and machinery policies, are at play. Determining liability and processing claims could extend over months, adding layers of difficulty given the sanctions.

(With inputs from agencies.)