Sanctions Pose Growing Risk for Shipping

International Trade attorney Manny Levitt was quoted in Dow Jones Risk Journal on increasing sanctions exposure risks for companies that charter, insure, finance or otherwise support maritime shipments. The U.S. has ramped up maritime sanctions and enforcement activity, with more designations against countries including Iran and Venezuela that can disrupt vessels and cargo mid-voyage. He noted that once a ship is sanctioned, routine commercial services such as banking, insurance and port access can effectively shut down. Impacted parties may then need to seek licenses from the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) while also navigating the shipping sector's ownership structures and "shadow fleet" tactics. Mr. Levitt added that, compared with sanctions controls in the financial sector, maritime compliance practices are uneven and still catching up.

"It's an area where companies are all over the place when it comes to compliance," he said.

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