TRACE and RightShip have partnered to support the reduction of corruption risk to charterers.
Anti-bribery organisation TRACE International (TRACE) and RightShip have partnered to launch a new service aimed at reducing charterers' risk to the effects of corruption, including various types of bunker fraud.
Specifically, the two organisations have combined RightShip's online maritime safety and environmental risk management system with TRACEcertification for vessel owners.
"Shipping is considered a high-risk industry and we are pleased to partner with RightShip to increase commercial transparency in a traditionally opaque industry," said TRACE President Alexandra Wrage.
"Completing TRACE Certified Due Diligence is a practical way for vessel owners to demonstrate their commitment to international anti-bribery standards while keeping compliance costs low."
TRACEcertification provides a Compliance Rating (CR) of CR-1, CR-2, CR-3, or CR-3s for vessel owners, with lower numbers indicating a lower bribery risk, while the CR-3s rating indicates that an entity or any of its owners are listed on an international sanctions list.
Alexandra Wrage, President, TRACE
We are pleased to partner with RightShip to increase commercial transparency in a traditionally opaque industry
RightShip Qi dashboard then displays its own risk ratings and vessel credentials alongside the TRACE CR.
"Unfortunately, the vast majority of bunker fraud incidents go unreported due to the collusive nature of these type of arrangements. Both an owner or ship manager and a physical supplier that collude to defraud a charterer would prefer to conceal the deal," Katya Lysova, Associate, Member Services and Advocacy, TRACE, told Ship & Bunker.
"However, once the fraud is discovered, the information related to parties involved will likely be captured in the TRACE due diligence review. Therefore, charterers who are concerned about their reputation and profits would choose a vessel that is TRACE Certified and has a good Compliance Rating - completing a TRACEcertification review demonstrates a commitment to anti-bribery compliance."
In September, Adrian Tolson, Senior Partner at 20|20 Marine Energy, explained to Ship & Bunker one example of a bunker fraud that could take place when an owner/ship manager colludes with a physical supplier to defraud a charter.