Press Release – Container shipping asked to clean up its act in view of upcoming scrapping wave
Triggered by overcapacity, lower freight rates and the new carbon regulations expected this year, numerous container ships will be sold for scrapping in the near future. In light of this foreseeable surge in the number of discarded box ships, the NGO Shipbreaking Platform has reached out to the largest companies of the sector demanding change in corporate policies and practices by encouraging the pursuit of sustainable solutions.
Several container shipping companies have already been in the spotlight due to the poor management of their end-of-life vessels. NGOs and Danish media revealed the hypocrisy of Maersk when they decided in 2016 to U-turn on their recycling policy and head for the Indian beaches. The profits made by Swiss giant MSC on the back of exploited workers and coastal environments also caused public outcry, and, in 2018, Scandinavian pension funds, including the Norwegian Government Pension Fund Global, divested from Taiwanese container line Evergreen due to the breach of international human rights and the severe environmental damage caused by the beaching of their vessels.
Ships contain many hazardous substances and materials that may negatively affect people and the environment. Hence, it is crucial that their dismantling is carried out in an environmentally sound and safe manner at a recycling destination that can safeguard workers’ health and protect local communities and ecosystems from pollution. Progressive companies and recycling businesses are looking at the EU Ship Recycling Regulation as the only responsible standard regulating this industry. South Asian beaching yards fail to comply with this standard, and more recently two Turkish facilities were removed from the EU List of approved ship recycling facilities.
With increasing focus on sustainability and due diligence, including pressure from investors and clients, many container lines need to revise their ship recycling practices and policies. Beaching is by far the worst industrial practice, as is the practice of down-cycling and re-rolling contaminated scrap steel. Options that operate with standards on safety, circularity and material recovery in line with international labour and environmental law and ESG expectations already exist. With the projected growth in demand for capacity to recycle large vessels, the NGOs call on the box ship sector to show leadership and support the scaling of truly sustainable ship recycling solutions.
Related news
Press Release – U.S. Shipping Line Matson backtracks on commitment to not dump their old ships on South Asian Beaches
The Basel Action Network (BAN) and the NGO Shipbreaking Platform today condemned Matson Shipping Lines for proceeding with the export of its former U.S.-flagged vessel MOKIHANA for scrapping at the notorious shipbreaking beaches of Alang, India.
... Read More
Press Release – Rendsburg Court acknowledges environmental harm caused by shipbreaking, but acquits shipowners
The NGO Shipbreaking Platform welcomes the Public prosecutor’s appeal of the Rendsburg District Court’s decision to acquit the shipowners involved in the illegal export and scrapping… Read More
Platform publishes South Asia Quarterly Update #10
The NGO Shipbreaking Platform publishes today the tenth South Asia Quarterly Update, a briefing paper in which it informs about the shipbreaking industry in Bangladesh, India and… Read More
Press Release – Platform publishes list of ships dismantled worldwide in 2024
409 ships were dismantled globally in 2024, of which 255 ended up in South Asian yards. Bangladesh remains the shipping industry’s first choice for scrapping, despite grave consequences for workers, local communities and fragile coastal ecosystems.
... Read More
Press Release – Turning point: new tech and developments for a new future of ship recycling presented at the Lab
Stakeholders that are pioneering a new future for sustainable ship recycling gathered in Rotterdam at the NGO Shipbreaking Platform’s Ship Recycling Lab.
... Read More
Press Release – Norwegian Central Bank excludes companies from government Pension Fund Global because of their beaching practices
The Norwegian Central Bank announced today its decision to exclude ship owners Evergreen Marine Corporation, Precious Shipping, Korea Line Corporation and Thorensen Thai Agencies from the… Read More
Press Release – NGOs and trade unions denounce certification issued to PHP yard by classification society RINA
In October, the PHP Family (Peace Happiness and Prosperity) shipbreaking yard received a Statement of Compliance with the Hong Kong Convention [1] by the Italian classification society… Read More
