Nicaragua, Equatorial Guinea Linked to Rise in Shadow Shipping

Maritime analytics company Windward has identified Nicaragua and Equatorial Guinea as newly emerging ship registries that are beginning to take on shadow fleet tonnage.

In a recent report, the firm noted that “False flagging remains one of shipping’s most pressing regulatory concerns.”

Data from the International Maritime Organization (IMO) shows that 550 vessels were recorded as falsely flagged by the end of the first quarter, up from 470 in the previous quarter. Of these, 367 were tankers.

In response to this growing issue, the IMO recently introduced new guidance aimed at improving transparency in ship registration and addressing the misuse of flags.

The measures were adopted during the organization’s Legal Committee meeting in London at its 113th session. They are intended to strengthen due diligence processes, improve oversight of registries, and ensure more accurate records of vessel ownership. The decision follows a surge in fraudulent registrations and false flag practices.

The updated framework places emphasis on stricter controls over who is authorized to carry out registrations, enhanced quality assurance procedures, and more thorough checks on vessel identity and eligibility.

David Heindel, president of the Seafarers International Union of North America, described the IMO’s action as a “reasonable” step, but also pointed to what he called a deeper issue.

“Most flag states today are operating as businesses—for profit—not as true sovereign regulators with a genuine link to the vessel,” Heindel said, adding: “Until the international community is willing to confront the commercialization of flag registries and reestablish the principle of a genuine link between vessel and flag, we will continue to chase problems that are structurally baked into the system.”