Legal

Reed Smith: Intensified scrutiny of greenwashing ads reaches shipping sector

Lawyer Voirrey Davies shares her comments on greenwashing claims in the shipping industry, relating to UK Advertising Standards Authority recently upholding a complaint about an ad by a cruise company.

Published

8 months ago

July 24, 2024

Admin

Law firm Reed Smith on Tuesday (23 July) shared comments by its lawyer Voirrey Davies on greenwashing claims in the shipping industry, relating to UK Advertising Standards Authority recently upholding a complaint about an ad by a cruise company in the digital edition of a national newspaper:

Greenwashing has become a prominent issue, especially with the EU Taxonomy's possible extension to cover various segments of the transportation industry. While greenwashing is typically associated with the oil, gas, and finance sectors, the UK Advertising Standards Authority (ASA) is now focusing on misleading advertisements across all industries, including shipping.

Hurtigruten - the Norwegian expedition cruise company - released an advert saying that they were the “leaders in sustainable expeditions” and it was the use of the word “sustainable” that resulted in them falling foul of the ASA. What Hurtigruten meant is that their cruises have a relatively low impact when compared to other cruise lines, which is probably true, but there was nothing to indicate in the advert that this claim of sustainability did not include flights.

However, the ASA said that this was not specific enough as it gives the misleading impression that the entire holiday package was “sustainable” and the measures Hurtigruten had put in place to reduce their environmental impact were insufficient to support an absolute “sustainable” claim.

The ASA and other regulatory authorities are keen to ensure that the understanding by consumers of the meaning of words, such as ‘sustainable’ or “green energy’, is clear and are maintaining a sharp watch on any company making such claims, whether they be an energy company, a private equity fund or indeed a cruise line.

As regulatory bodies like the ASA tighten their scrutiny, it becomes crucial for companies across all sectors to ensure their sustainability claims are clear, accurate, and fully substantiated.

Note: ASA’s ruling on the complaint involving Hurtigruten UK Ltd can be read here.

Photo credit: CHUTTERSNAP on Unsplash
Published: 24 July 2024

Sanctions

US OFAC sanctions first Chinese teapot refinery and oil tankers over Iranian links

Shandong Shouguang Luqing Petrochemical and its chief executive officer were added to OFAC’s sanctions list for purchasing and refining hundreds of millions of dollars’ worth of Iranian crude oil.

Published

7 hours ago

March 24, 2025

Admin

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) on Thursday (20 March) sanctioned a “teapot” oil refinery and its chief executive officer for purchasing and refining hundreds of millions of dollars’ worth of Iranian crude oil, including from vessels linked to Ansarallah, commonly known as the Houthis, and the Iranian Ministry of Defense of Armed Forces Logistics (MODAFL).

Shandong Shouguang Luqing Petrochemical Co., Ltd (Luqing Petrochemical), a teapot refinery in Shandong Province, has purchased millions of barrels of Iranian oil worth approximately half a billion dollars.

Luqing Petrochemical received Iranian oil transported by shadow fleet vessels, some of which have been sanctioned for their role transporting Iranian petroleum linked to the Houthis and MODAFL, including the MEHLE (IMO: 9191711) and the KOHANA (IMO: 9254082). In mid-2022, Luqing Petrochemical was identified as a buyer of Iranian oil associated with the Iranian military and Iranian military forces.

Luqing Petrochemical is being designated pursuant to E.O. 13902 for operating in the petroleum sector of the Iranian economy. PRC national Wang Xueqing serves as the chief executive officer and legal representative of Luqing Petrochemical, and is being concurrently designated pursuant to E.O. 13902 for having acted or purported to act for or on behalf of, directly or indirectly, Luqing Petrochemical.

“Teapot refinery purchases of Iranian oil provide the primary economic lifeline for the Iranian regime, the world’s leading state sponsor of terror,” said Secretary of the Treasury Scott Bessent.

“The United States is committed to cutting off the revenue streams that enable Tehran’s continued financing of terrorism and development of its nuclear program.”

OFAC additionally imposed sanctions on 19 entities and vessels responsible for shipping millions of barrels of Iranian oil, comprising part of Iran’s “shadow fleet” of tankers supplying teapot refineries like Luqing Petrochemical.

Iranian crude oil is transported to teapot refineries via a “shadow fleet” of vessels that usually engage in deceptive shipping practices, including automatic identification system (AIS) manipulation.

OFAC sanctioned eight vessels that constitute part of this fleet, including the Comoros-flagged NATALINA 7 (IMO: 9310147), Panama-flagged CATALINA 7 (IMO: 9310159), AURORA RILEY (IMO: 9181649), and VIOLA (IMO: 9254915), San Marino-flagged MONTROSE (IMO: 9281695), Barbados-flagged VOLANS (IMO: 9422988) and BRAVA LAKE (IMO: 9232876), and the currently unflagged TITAN (IMO: 9293741).

Photo credit: tommao wang on Unsplash
Published: 24 March, 2025

Vessel Arrest

Malaysia: MMEA detains Singapore-flagged bulker for illegal anchoring in Perak

“Queen Harmony”, operated by an Egyptian captain along with one Russian, two Ukrainians and 17 Filipino crew members, was detained about 13 nautical miles northwest of Pulau Jarak.

Published

4 days ago

March 20, 2025

Admin

Malaysia: MMEA detains Singapore-flagged bulker for illegal anchoring in Perak

Perak Malaysian Maritime Enforcement Agency (MMEA) on Tuesday (18 March) detained a Singapore-flagged bulk carrier for anchoring without permission about 13 nautical miles northwest of Pulau Jarak at 3.30pm on 17 March.

Perak MMEA director Maritime Capt Mohamad Shukri Khotob said the vessel, Queen Harmony, was operated by an Egyptian captain along with one Russian, two Ukrainians and 17 Filipino crew members.

Further investigation found that the ship failed to present any documents for permission to anchor and did not report their arrival in Malaysian waters.

The case is being investigated under the Merchant Shipping Ordinance 1952, which carries a fine of not more than MYR 100,000 or a jail term of not more than two years, or both, for anchoring without permission. It is also being investigated for the offence of failing to report its arrival, which carries a fine of up to MYR 5,000.

Two crew members of the ship were taken to the Perak State Maritime Headquarters for further investigation.

Photo credit: Malaysian Maritime Enforcement Agency
Published: 20 March, 2025

Winding up

Singapore: Final meetings scheduled for Flores Shipping and related companies

Other companies involved in the matter are Lombok Shipping and PACC Banda; meetings will be held at 600 North Bridge Road, #05-01 Parkview Square, Singapore 188778.

Published

1 week ago

March 17, 2025

Admin

The final meetings of members of Flores Shipping Pte Ltd and related companies, have been scheduled to take place on 14 April, according to the company’s liquidators on a notice posted on Friday (14 March) on the Government Gazette.

The other companies involved in the matter are Lombok Shipping Pte Ltd and PACC Banda Pte Ltd.

The meetings will be held at 600 North Bridge Road, #05-01 Parkview Square, Singapore 188778 at the following times:

Flores Shipping: 9am
Lombok Shipping: 9.30am
PACC Banda: 10am

The meetings will be held the purpose of having an account laid before the members showing the manner in which the winding up has been conducted and the property of the company disposed of and of hearing any explanation that may be given by the liquidators.

The details of the liquidators are as follows:

Victor Goh
Khor Boon Hong
Marie Lee
Joint Liquidators
C/o Baker Tilly
600 North Bridge Road
#05-01 Parkview Square
Singapore 188778

Note: Pursuant to Section 181 of the Companies Act 1967, a member entitled to attend and vote at this meeting is entitled to appoint another person or persons as his/her proxy to attend and vote in his/her stead. Proxies to be used at the meeting must be lodged at the Office of the Liquidators not later than 48 hours before the meeting.

Photo credit: Benjamin-child
Published: 17 March, 2025