By Weilun Soon
Feb 13, 2026 (Bloomberg) – Three tankers that have been sanctioned by the US have arrived for demolition on India's west coast in less than a month. This marks a surprisingly strong beginning to the year for the ship-breaking industry, which is increasingly willing to accept such vessels to cope with a tough market downturn.
The Woodchip, a Suezmax tanker built in 1993 and blacklisted by the US in 2021 under a different name, reached the Gujarat coast late last week. According to reports from agents, ship-tracking data, and sources familiar with the situation, this makes it the oldest sanctioned supertanker to arrive at the Alang demolition yard. Sources requested anonymity as negotiations are private.
This marks the third such vessel to arrive in the area in under a month, following two other US-blacklisted tankers, Global Star and Bodhi.
The arrival of these ships shows a shift in the fleet transporting sanctioned or sensitive crude worldwide, as older vessels near retirement amidst an oversupply. Additionally, US officials are starting to accept Venezuelan crude, reducing the need for previously off-limits vessels. According to shipbroker Braemar Plc, about 128 dark tankers used to handle Caracas' exports.
For years, scrapyard owners were hesitant to buy blacklisted vessels due to the risk of falling under US sanctions. Some maritime experts worried that these vessels might end up abandoned at sea, creating hazards for other ships and coastal areas.
However, the rise in trade indicates that local businesses facing financial struggles are now more accepting of dark-fleet ships.
“Once someone started this business, the numbers began to grow. Those who want to stay in the market have no choice but to buy such vessels,” commented Anil Sharma, founder and CEO of GMS, a major buyer of end-of-life ships. Sharma noted that GMS does not trade in sanctioned ships.
The number of dark vessels arriving in Alang has been increasing over the past months. The area received a record 15 US-sanctioned ships last year, including the very first blacklisted very large crude carrier, according to sources who asked to remain anonymous due to the confidential nature of the deals. These sales could total over $110 million, based on ship tonnage and current recycled steel prices.
The 963 dark-fleet tankers that transported sensitive cargoes in the past year have an average age of 21 years, based on Braemar's data, significantly older than the usual point for scrapping. The Woodchip is 33 years old, while Bodhi is 29 and Global Star is 27.
GMS has requested permission from Washington to legally purchase up to a dozen sanctioned ships, including at least three Venezuelan-linked tankers that were seized by the US, said Sharma. So far, the company has not received any approval or clear timeline.
No contact information was available for Tide Express Ltd., the Seychelles-based owner and manager of Woodchip, according to the maritime database Equasis. Bodhi's Kazakhstan-based manager, Virtue Navis Shipmanagement, did not respond to an email request for comment. There were also no immediate contact details for its owner, Erst Group Ltd.
Glory International FZ LLC, the manager for Global Star, and its owner Global Star Shipping Lines Inc. also did not respond promptly to requests for comment.