Ship-to-ship transfer is a routine commercial operation used for lightering, for reaching ports with draught limits, and for consolidating parcels. Done normally it is announced, insured, logged and conducted in designated areas in daylight.
The 2020 global advisory issued by State, Treasury and the Coast Guard describes its abuse in detail: transfers at night, in poor weather, outside recognised areas, and with vessels whose identity cannot be established. Because the cargo changes hands where there is no port authority, it is also the point at which the documented origin of a cargo can be replaced.