US permits GMS to recycle Iran-linked sanctioned vessels

• Four sanctioned container ships cleared for ship recycling
• Move may reduce ageing shadow fleet vessel operations

The United States has granted Dubai-based ship recycler GMS a licence to purchase and recycle four sanctioned containerships linked to Iranian oil trade activities, marking the first known US-approved scrapping transaction involving sanctioned vessels. The approval from the Office of Foreign Assets Control (OFAC) covers the vessels Yogi, Timon, Rantanplan, and Bigli, which were sanctioned last year as part of a broader network associated with Iranian shipping activities.

Vessels linked to Iran sanctions network

The vessels, ranging between 5,800-6,900 twenty-foot equivalent unit (TEU) and built between 2005-2009, have remained idle since August 2025 after being off-hired by SeaLead. According to market participants, they are expected to become the largest containerships scrapped globally since 2020. Industry sources noted that the move could create a legal and transparent pathway for removing ageing shadow fleet vessels from circulation.

Shadow fleet concerns continue rising

The so-called shadow fleet expanded significantly after sanctions on Iranian, Russian, and Venezuelan oil trades intensified in recent years. Many of these vessels have continued operating despite ageing conditions, limited insurance coverage, and growing environmental and maritime safety concerns.

Market impact and recycling outlook

Market participants noted that the latest US approval may support safer and more regulated ship recycling activity by allowing sanctioned vessels to enter formal demolition channels instead of remaining inactive or operating under opaque ownership structures. The move could also gradually reduce the number of ageing and poorly maintained vessels involved in sanctioned oil trades.

Around 1,836 vessels globally are currently under sanctions, including 55 containerships. Meanwhile, containership demolition activity has remained extremely limited so far in 2026, as strong charter earnings and elevated secondhand vessel prices continued discouraging recycling activity across the shipping sector.