Iceland’s Reliance on Foreign Ships Raises Security Concerns

2026-03-25 - 10:32

Iceland could face disruptions to essential imports during a major international conflict due to its lack of control over merchant shipping, according to a new analysis. As reported by RÚV, a report by the insurance company Vörður states that none of the vessels transporting goods to Iceland are registered domestically. What's the Story? Report by Vörður states none of the ships carrying goods to Iceland are registered domestically Around 90% of imports, including food, fuel and medicine, transported by sea on foreign-flagged vessels Previous efforts to strengthen Iceland’s ship registry blocked or not passed, including a 2007 ESA decision and a 2021 draft bill A ship leaves Arnarstapi harbour. Photo: Golli. Iceland Review. Supply chain risks With around 90% of the country’s trade arriving by sea, this raises concerns about access to key supplies such as food, fuel, and medicine. Most cargo ships serving Iceland operate under foreign registries, including those in the Faroe Islands, Norway and the Netherlands. As a result, Icelandic authorities would have limited legal powers to requisition vessels in an emergency. Speaking on the radio, Kristinn Lár Hróbjartsson, co-founder of Vörður, said: “It is generally well known in national security matters that countries in general and nation states have part of their sovereignty to be able to take over certain assets of people and companies if they need to use them for something else.” He added: “Other shipping registries offer better taxation, better wages and better service than we have been able to do here in Iceland.” The report notes that Iceland had 39 registered merchant ships in 1987, but none today. Previous efforts to strengthen the national registry have not succeeded, including a 2007 attempt rejected by the EFTA Surveillance Authority and a 2021 draft bill that did not pass.