Iran is switching off AIS (tracking systems) for most of its 39 ship tanker fleet, citing oil industry, trading and shipping sources, was an effort to disguise the destination of oil sales.
The main aim is to take the ships "off radar" is designed to counter sanctions by the west as per sources. Captains of the National Iranian tanker Co., were ordered to switch off their black box transponders used in the shipping industry to track vessel.
Now only two of NITC's smaller suezmax size tankers now have their tracking system in operation as per sources.
Under normal circumstances, tankers would generally not turn off AIS (Automatic Ship Identification system), which were introduced to improve safety at sea and allow, marine authorities to locate vessels.
Ships are obliged by international law to have a satellite tracking device on board when travelling at sea. However, a ship's master has the discretion to turn off the device on safety grounds with the permission from the vessel's flag state.
Millions of barrels of Iranian oil that were in storage in Iranian tankers a few weeks ago now seem to have disappeared, ship tracking data shows.
So where is it going ? Has it been re-routed, has production been shut in or is the oil being stored somewhere else ? Is it all being stored at sea ?
"It's the million dollar question - the billion dollar question even " a senior executive in Asia at a large oil trading house said.
As per European shipping industry sources "Some big Asian companies may be taking oil on Iranian ships provided they switch off the transponders."
It has long been assumed Iran would sell most of the oil shunned by Europe to China, its long-term strategic and commercial ally. But until now there has been scant proof.
India, however, has been buying oil on Iranian ships on extended credit for several months, Industry sources say.
"China and India are our lifters of last resort," said an Iranian oil official, who declined to be identified. "And the sanctions are making the situation very good for them."