Spotting the Red Flags: Identifying Fraudulent Behavior in Shipowners

If you’ve been in the maritime supply game long enough, you start noticing certain... let’s say, patterns.

Not all shipowners are on the up and up, and some play fast and loose with ethics. The trick is spotting the warning signs before you’re left chasing invoices across international waters.

The great Sherlock Holmes would say, "The world is full of obvious things which nobody ever observes."

We’ve observed them, and now I’m sharing some classic red flags that every savvy supplier should keep an eye on.

1. The ‘Urgent’ Order with No Deposit

Ah, the frantic last-minute request: "We need these parts urgently! The vessel is in dry dock tomorrow!" It sounds legit, but here’s the rub—no deposit. They’ll promise to "sort the payment later" or assure you that the "finance team is working on it." If this isn’t raising alarms, it should be. As the old saying goes, "A fool and his money are soon parted." No upfront cash, no deal—simple as that.

Example:

A client needs engine spares for their vessel in Amsterdam, pronto. They’ve got an elaborate story about why the funds are delayed. You send the parts because you're a good sport... and then it’s radio silence. Weeks pass, and suddenly their email server is "down" or they’ve "moved offices." Sound familiar?

2. The Price Haggler Who Doesn’t Care About Specs

Now, I get it—everyone wants a good deal, but there’s a difference between negotiating for a fair price and hammering down costs to suspiciously low levels. When a shipowner doesn’t seem to care about the specifications or quality of the goods, only the price tag, it's a red flag. This is usually a sign that they’re looking to flip the items quickly or don’t need them in the first place.

Example:

Imagine a buyer asking for lube oils of fuel, insisting, “We don’t care if it’s the right spec, just make it cheap.” This isn’t a case of a savvy operator cutting costs; it’s someone cutting corners. As George Orwell once said, "A people that elect corrupt politicians... are not victims... but accomplices." Don’t become an accomplice in their shenanigans.

3. The ‘Payment is in Progress’ Phantom

This is one of my favorites. You’ve sent the invoice, followed all the procedures, and now the shipowner swears the payment is on its way. It’s “stuck in the bank,” “processing internationally,” or my personal favorite, “lost in the system.” It’s a con as old as the sea. If they’re always blaming the payment processor and not giving any proof, possibly, something fishy is going on.

Example:

You’ve just shipped 5 tons of provisions to a vessel berthed in Hamburg. The buyer assures you that the wire transfer is just "waiting for the CEO's signature." Days turn into weeks, and the payment is still nowhere to be seen. At this point, you realize you've been fooled, like a sailor abandoned at port.

4. The Overly-Friendly Buyer Who ‘Forgets’ the Paperwork

You know the type—overly chatty in WhatsApp, quick to build rapport, and always "so grateful" for your quick service. But when it comes to sending through official documentation— like contracts, purchase orders, or even just a signed agreement—they suddenly have amnesia shock. Classic tactic to stall and dodge responsibility!

Example:

Let’s say a shipowner contacts you directly, by phone or messenger, skips the usual formalities, and sweet-talks their way into getting goods shipped immediately. They promise, "I’ll send the PO tomorrow, mate." Tomorrow never comes. And as Mr. Oscar Wilde so wisely put it, "No man is rich enough to buy back his past."

5. Constant Changes in Delivery Location

Beware the shipowner who keeps changing the delivery point at the last minute. First, it’s Rotterdam, then Gibraltar, then—hold on—Naples?! It’s the maritime version of a shell game. This tactic usually points to either dodgy dealings or a buyer trying to keep suppliers on their toes, hoping the confusion leads to mistakes they can exploit.

Example:

The classic switcheroo: You’ve lined up a delivery in Marseilles, but the ship suddenly "has to move" to Athens, and they want you to re-route the order. At this point, you’re questioning whether the vessel even exists or if this buyer is just leading you on a wild goose chase.

6. Requests for ‘Creative Invoicing’

Ever been asked to adjust an invoice in a way that “helps both parties”? Shipowners requesting vague or misleading descriptions on invoices are often looking to dodge customs or taxes. This might seem like a small ask, but it’s a massive legal headache waiting to happen. If you smell anything fishy, it’s probably because you’re being drawn into something shady.

Example:

You’re asked to change "main engine spare parts" to "general supplies" on an invoice and delivery documents. Why? So they can slip it through customs without paying the fees. It’s tempting to help out but be aware.

Conclusion

In the rough and tumble sea of maritime supply, staying sharp is the name of the game.

Remember that trust is earned, not given, and a smart supplier always keeps an eye out for the signs of a dodgy deal. As William Shakespeare, might say, "All that glisters is not gold."

Some deals may shine like a diamond at first glance, but dig deeper and you may find something very special headache and nothing but fool’s gold.

Stay vigilant, seamen, and trust your gut — it rarely steers you wrong.