Friday, June 9, 2023
HomeHeadlinesLloyd’s Register Withdraws Class from Indian Shipowner Gatik


To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

Lloyd’s Register Withdraws Class from Indian Shipowner Gatik

Lloyd’s Register has told India’s Gatik Ship Management, which has become a major carrier of Russian oil since the Ukraine war, that it will withdraw certification of 21 of its vessels by June 3, the maritime services company told Reuters.

It is the latest setback for Gatik, which was also been forced to find new flags for 36 of its ships after they were deflagged by the St. Kitts & Nevis International Ship Registry.

“Lloyd’s Register is committed to facilitating compliance with sanctions regulations on the trading of Russian oil,” it said in an email to Reuters. “Where supported by evidence, we withdraw class and services from any vessels found by the relevant authorities to be breaching international sanctions.”

Classification societies such as Lloyd’s Register in London provide services including seaworthiness checks, certification that is vital for securing insurance and entry to ports.

Lloyd’s Register said, however, that 11 of the Gatik vessels it was declassifying were also certified by the Indian Register of Shipping (IRClass).

Gatik, which is based in the Indian city of Mumbai according to shipping databases, did not respond to emailed requests for comment.

A major U.S. insurer, the American Club, also told Reuters it was no longer providing cover for Gatik ships, while Russian insurer Ingosstrakh said it would not work with Gatik in future.

Neither the insurers, Lloyd’s Register nor the flag registry spelled out exactly why they have dropped business with Gatik.


In response to Russia’s invasion of Ukraine, Western powers imposed a price cap on Russian crude of $60 a barrel.

While non-EU countries can import seaborne Russian crude, Western shipowners and insurers are prohibited from handling such cargoes unless they are sold at or below that price.

Last month, spot prices for Russian crude rose above $60 a barrel and some ship insurance executives said they were nervous of falling foul of the rules as they were unable to independently track the value of cargoes.

India does not recognize the sanctions imposed on Russia and has quickly become the biggest buyer of seaborne Russian crude.

Western efforts to curtail the amount of revenue Russia earns from its energy resources are having a disruptive impact, as are Western sanctions on oil exports from other countries such as Iran and Venezuela.

But the opacity and limited oversight of the shipping sector means many vessels with cargoes from countries targeted by sanctions continue to sail by finding new flags and non-Western registries or insurers, raising concerns about safety and liability.

Every ship requires documents including a flag registry.

Ships typically have protection and indemnity (P&I) insurance which covers liability claims including environmental damage and injury. Separate hull and machinery policies cover vessels against physical damage.

While Lloyd’s Register is dropping classification for 21 Gatik ships, at least 28 were listed as certified by the Indian Register of Shipping, according to the IRClass website.

IRClass, which is recognized globally, did not respond to requests for comment.


Gatik emerged this year as a leading carrier of Russian oil to India using a fleet of tankers that has numbered more than 40, shipping data shows.

American Club, one of the world’s top 12 P&I insurers which combined provide cover for about 90% of the world’s ocean going tonnage, said it previously covered most Gatik ships but as of early April was no longer covering them, declining to say why.

Ingosstrakh, a large Russian insurer active in ship coverage but not part of the top 12, told Reuters this month that its insurance cover for Gatik’s Prometheus tanker expired in April and had not been renewed.

Ingosstrakh said it “had to decline certain requests for insurance it received from Gatik due to the risks identified as part of our adverse media screening procedure,” citing negative media coverage without being more specific.

“We can also confirm that we do not plan to work with Gatik in the future,” the privately owned Russian insurer said in response to queries from Reuters.

Reuters was unable to ascertain whether any Gatik vessels were currently operating without essential paperwork.

India imported 2.76 million tonnes of Russian oil in vessels managed by Gatik during the first four months of 2023, or 10% of its total Russian imports, according to tanker arrival data and Reuters calculations.

According to Refinitiv data, about 1.36 million tonnes of Russian crude was earmarked for arrival in India in May and June on tankers linked to Gatik, although those numbers were preliminary.

In April, the St. Kitts & Nevis International Ship Registry told Reuters it was removing its flag from 36 Gatik vessels.

“It is the long-standing policy of the Registry that when we are alerted to breaches of our high standards by vessels flying our flag, we always investigate and take action accordingly,” the registry said, declining to provide further details.

According to data from maritime platform Lloyd’s List Intelligence, Gatik has flagged 15 ships to Gabon, up from 9 at the start of April before St. Kitts & Nevis started removing its flag from the company’s vessels.

Gabon’s flag registry did not respond to requests for comment.

Related Posts


Finance & Economy
Shipping News

Trafigura publishes 2023 interim results showing a strong performance

Trafigura, a market leader in the global commodities industry, released its 2023 Interim Report today for the six-month period ended 31 March 2023. The results...

Globus Q1 results hit by weak dry bulk market

Globus Maritime Limited, a dry bulk shipping company, reported its unaudited consolidated operating and financial results for the quarter ended March 31, 2023. Revenue $8.6 million...

BW LPG appoints new CFO

BW LPG announced that it has appointed Ms Samantha Xu as Chief Financial Officer (CFO), effective 1 September 2023. Ms Xu has over 20 years...

Frontline Posts Highest First Quarter Results Since 2008

Frontline plc reported unaudited results for the three months ended March 31, 2023: Highlights Highest first quarter profit since 2008 of $199.6 million, or $0.90 per...

Diana Shipping posts slightly lower Q1 profit; takes out $123m in loans

Diana Shipping reported net income of $22.7 million and net income attributed to common stockholders of $21.3 million for the first quarter of 2023....

Celestyal Participates In Promotion Of The Tourist Destination Of Central Macedonia

Celestyal, the award-winning, number one choice for travellers to the Greek Islands and the...

Capesize, panamax gains drive Baltic index higher

The Baltic Exchange’s main sea freight index rose for a fourth straight session on...

Baltic rises to over 3-month peak on firm demand for larger vessels

The Baltic Exchange’s main sea freight index rose on Wednesday to scale its highest...

Baltic index logs best day in nearly 3 months

The Baltic Exchange’s main sea freight index posted its biggest single-day gain since mid-March...

Taiwan Shipping Firms Set to Hand Out Bumper Bonuses Again

Taiwanese shipping companies are handing out bumper mid-year bonuses despite a slump in global...

Iraklio port tender set for another delay

The opening of the binding financial offers for 67% of Iraklio Port Authority had been scheduled for Thursday, but this is no longer expected...

APM Terminals extends concession of Kalundborg container terminal

APM Terminals has reached an agreement with the Port of Kalundborg to extend the concession of Kalundborg container terminal by 10 years to 2033. In...

US West Coast port workers shut terminals in showdown over pay

The employers of more than 22,000 dock workers at U.S. West Coast seaports on Friday said the union representing those laborers “is staging concerted...

DP World Completes Terminal Expansion Project Vancouver Port

DP World has completed the AED954 million ($259.78 million) Centerm expansion project, increasing container throughput at the Port of Vancouver by 60 percent. The terminal...

DP World completes AED 954 million Vancouver port expansion

DP World and the Vancouver Fraser Port Authority have celebrated two historic events – the completion of the Centerm Expansion Project at DP World...