Iran Feature: How Tehran Evades Sanctions on Its Ships (Armstrong/Grey/Ojha)

Rachel Armstrong, Stephen Grey, and Himanshu Ojha report for Reuters:

Just before noon on a sticky, overcast Saturday morning earlier this month a truck carrying two white containers waited at an electronic checkpoint to leave Singapore's main port. The containers bore the bright red letters IRISL, the initials of Iran's cargo line, which has been blacklisted by the United Nations, United States and European Union. 

Anchored just off Singapore's playground island of Sentosa that same day, the container ship Valili was also stacked high with IRISL boxes. A couple of miles to the east the Parmis, another container ship, also carried IRISL crates. Shipping movements data tracked by Reuters shows the Parmis had pulled into Singapore waters from the northern Chinese port of Tianjin early that morning.

The ships and containers are key parts in an international cat-and-mouse game, as Iran attempts to evade the trade sanctions tightening around it. Washington and European capitals want to stop or slow Iran's nuclear program. They believe Iran Shipping Lines(IRISL), which moves nearly a third of Iran's exports and imports and is central to the country's trade, plays a critical role in evading sanctions designed to stop the movement of controlled weapons, missiles and nuclear technology to and from Iran.

IRISL would not comment for this story. Last June the company said in an interview that there was no evidence it had been involved in arms trafficking. Iran says its nuclear program is peaceful and that IRISL has no links with any weapons program. Tehran complained vigorously last June when the European Union followed the United States with beefed-up sanctions that banned new contracts with IRISL. A United Nations resolution forces all states to inspect IRISL's cargo.

But many in the West hold up IRISL as exhibit A for Iran's ability to evade sanctions because the shipping line regularly reflags its ships and changes their official owners.

An analysis of shipping data sheds new light on that deception. Using data from IHS Fairplay, a ship tracking group that uses ship registration documents from various sources, and Reuters Freight Fundamentals Database, which compiles location data from every ship's Automatic Identification System, shows that despite the sanctions 130 of the 144 banned ships in IRISL's fleet continue to call at many of the world's major ports hidden behind a web of shell companies and diverse ownership.

Dozens of Iranian ships have used Singapore several hundred times in the past two years, for instance, as a stop-off on their way to other destinations such as China.

The data shows that in the 48 months before U.S. sanctions began in September 2008, IRISL made 345 changes to its fleet including names, the flags ships sailed under, operators, managers and registered owners. In the 40 months since sanctions began there have been at least 878, including 157 name changes, 94 changes of flag, 122 changes of operator, and 127 changes of registered ownership.

Hugh Griffiths, head of Countering Illicit Trafficking-Mechanism Assessment Projects at the Stockholm International Peace Research Institute, says what's unique about those changes is their pace and scale. Normally a ship's name or flag changes when its owner sells it after a decade or so.

"In the Iranian case, none of these apply because it's not based on the normal commercial reasons you'd expect," he said. "Nothing on this scale has ever been seen before in recent history."

John Dalby, a former oil tanker captain and chief executive of Marine Risk Management, a global consultancy and maritime security company, agrees. "When you add name changes, flag changes, changes of operators and then changes of registered owners - especially if it is, to all intents and purposes, the same owner - it means they are trying to hide. Especially so many in such a relatively short space of time."

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