International Failure to Impose Effective Limitations
On 2 December 2022, the G7, joined by Australia, agreed to impose a $60 per‑barrel cap on Russian crude oil. The aim was twofold. To reduce Russia’s revenue and weaken its ability to finance the war in Ukraine. Reduce Russia’s dominance over European energy markets.
In theory, this demonstrates Western control over a crisis that has destabilised their economies. In practice, the measure is already facing criticism.
The cap may be too weak
A $60 barrel is still higher than the current market price for Russian crude. Critics argue that the cap is symbolic rather than punitive. If Russia can continue selling at or above market value, the cap does little to restrict its income.
Oil tankers “going dark”
There is growing evidence that Russian‑affiliated tankers are turning off their tracking systems to avoid sanctions. When a tanker “goes dark”, it can transfer oil to a non‑Russian vessel, allowing the oil to be sold above the sanctioned price.
Research shows that the number of tankers going dark in the South Atlantic doubled between September and November. This trend is likely to accelerate now that the cap has taken effect.
Without a legal mechanism to enforce transparency, sanctions become porous. Britain’s failure to address these covert practices undermines its own economic stability.
Domestic Disputes: Strikes and Structural Weakness
Britain’s shipping challenges are not limited to international sanctions. Domestic unrest has exposed deeper structural issues.
Strikes at major ports
In August 2022, workers at Felixstowe, Britain’s largest container port, staged an 8‑day strike over pay. In October, Liverpool dock workers threatened further action before securing a pay deal.
Strikes in the shipping sector are not new. However, the timing is significant. They form part of a wider pattern of industrial action across rail, postal services and other sectors. The cost‑of‑living crisis has pushed workers to breaking point.
Government response lacks depth
The Office for National Statistics reported a 96.6% reduction in imports from Russia compared to the year before the invasion. This shows the government’s willingness to impose sanctions. It does not show whether those sanctions are effective or whether they are worsening domestic economic pressures.
Britain is not alone. Australian port workers threatened lockouts in September 2022 due to workforce issues. The Australian government responded by proposing changes to maritime laws to stabilise the sector.
Britain has not taken similar steps. Without legal reform, industrial unrest will continue.
The Need to Change Maritime Laws
The problem is not only domestic. The global maritime legal framework is outdated.
UNCLOS and the “Law of the Sea”
The United Nations Convention on the Law of the Sea was negotiated in 1982. It governs navigation, territorial waters and maritime conduct. It remains the recognised “Law of the Sea”.
However, the geopolitical landscape has changed dramatically. Tensions in the South China Sea in 2018 sparked debate about amending UNCLOS. The Russian‑Ukrainian conflict revived that debate in 2022. Yet no amendments have been made.
Why reform is needed
Russia’s dominance over European energy markets and the limitations of the oil cap highlight the need for:
- Stronger enforcement mechanisms
- Clearer rules on tanker transparency
- Updated sanctions frameworks
- Modernised governance for maritime security
Domestically, Britain needs a legal framework that addresses:
- Pay disputes
- Workforce stability
- Supply chain resilience
- Economic protection during international crises
Australia’s willingness to reform its maritime laws shows that change is possible. Britain must follow suit.
Conclusion
The shipping industry is a global lifeline. When it falters, economies falter with it. Britain’s current approach to sanctions, domestic unrest and maritime governance is insufficient. International laws need updating. Domestic laws need strengthening. Without decisive legal reform, Britain will continue to feel the economic shockwaves of global conflict and industrial instability.
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