Platform publishes South Asia Quarterly Update #34

In this quarterly publication, the NGO Shipbreaking Platform informs about the shipbreaking industry in Bangladesh, India and Pakistan. Providing an overview of accidents that took place on the beaches of South Asia and recent on-the-ground developments, including our activities, we aim to inform the public about the negative impacts of substandard shipbreaking practices as well as positive steps aimed at the realisation of environmental justice and the protection of workers’ rights. 

 

Click here or on the image below to access the full version of our quarterly report. 

Press Release – Ship owner and two directors fined by Dutch Court for breaching EU waste law

Last week, a judgment was handed down by a Rotterdam Court in the Netherlands, convicting the Dutch shipping company Jumbo and two of its directors for their involvement in the illegal export of an end-of-life ship to Turkey for recycling. 

 

The verdict was issued for the breach of the notification procedures under the European Waste Shipment Regulation. The court imposed a fine of 25.000 euros on ship owner Jumbo, while the directors were individually fined 2.500 euros. The Public Prosecution Service had initially sought community service for the directors and a fine of 100.000 euros for the company.

 

The ruling addressed the sale of two end-of-life ships in 2014 and 2015. In both instances, Jumbo had failed to submit the notification documents that guarantee the informed consent for the cross-border movement of end-of-life vessels, which are considered hazardous waste under EU and international law. However, in one of the cases, the defendants were acquitted as the ship was found to be situated outside EU waters at the time of the decision to sell the it for scrap.

"We applaud Dutch authorities for their continued efforts to crack down on the illegal trafficking of toxic ships. This particular case, however, sadly showcases how easily ship owners can avoid being held accountable by simply moving the vessel outside EU waters prior to selling for scrap. Where the ship is located should thus not be the only factor relevant to determine jurisdiction. Indeed, vessels are intended to move internationally, and in the Jumbo case the decision to scrap was taken by a company domiciled in the Netherlands, with headquarters in Schiedam."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

In the last eight years, several ship owners and individuals have been held liable by Dutch courts for breaching international and European waste laws. More cases are under criminal investigation in other EU Member States, including Germany, where more than 100 police officers raided the offices of renowned Hamburg-based shipping companies in 2021. Last year, the Norwegian Supreme Court confirmed  the sentencing of six months to prison for a ship owner that had attempted to scrap a vessel in Pakistan. Yet, the majority of European shipping companies that keep scrapping old tonnage at substandard shipbreaking yards are still treated with impunity as they take advantage of loopholes in existing laws.

"The NGO Shipbreaking Platform is calling for a review of the EU law applicable to end-of-life vessels that will effectively ensure that ship owners are held accountable in their own jurisdictions. Dirty and dangerous shipbreaking is a serious environmental crime and enforcement authorities must be given the means to effectively stop illicit practices of EU-domiciled companies."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

Press Release – Petrobras to recycle offshore unit in Brazil for the first time

Petrobras, the major Brazilian energy company, has achieved a significant milestone in its new commitment to sustainable ship recycling with the successful conclusion of the auction for the disposal of a floating offshore platform in Brazil.

 

The sale of the floating unit P-32, which has operated in the Marlim field of the Campos Basin, took place on 7 July 2023. In a collaboration supervised by Petrobras, the  steel company Gerdau S.A. and shipyard Ecovix have been entrusted with the responsible and environmentally sound recycling of the platform.

"This decision marks the first time a commercial vessel at the end of its lifecycle will be dismantled in Brazil. This significant move not only paves the way for the development of a recycling industry in Brazil but also sets an important precedent for the shipping and oil and gas sectors, encouraging other ship owners to adopt similar strategies for capacity building."
Nicola Mulinaris - Senior Communication and Policy Advisor - NGO Shipbreaking Platform

Over the next five years, Petrobras is expected to retire at least 26 units, with a projected investment of US$ 9.8 billion allocated towards decommissioning activities. Just a few months ago, the oil and gas giant announced the adoption of a new policy mandating the recycling of vessels only in facilities equipped with dry-docks or impermeable surfaces with drainage systems. This off the beach stance places the company among an increasing number of responsible ship owners, including competitors SBM Offshore and Shell, that are choosing facilities with infrastructure enabling the safe and environmentally sound management of their end-of-life assets.

 

"After years of selling numerous old vessels for dirty and dangerous shipbreaking on the shores of South Asia, Petrobras has finally committed to environmental stewardship by unequivocally disavowing such practices. Moreover, their decision to opt for a domestic solution, leveraging the state-of-the-art infrastructure available in Brazil, showcases that it is possible to find alternative and better solutions to beaching."
Nicola Mulinaris - Senior Communication and Policy Advisor - NGO Shipbreaking Platform

Press Release – NGOs call on the Netherlands to push for the safe and environmentally sound recycling of FSO Safer

As the operations for the removal of the oil on-board the decaying Floating Storage and Offloading (FSO) vessel SAFER are taking place off the coast of Yemen, the UNDP is looking for a destination for the FSO’s recycling. NGOs have urged the UNDP to find a solution that effectively addresses the inherent risks associated with the dismantling process and the management of the hazardous materials that will remain on-board. Now, they are calling on the Dutch government, one of the biggest donors to the Stop Red Sea Oil Pollution operation, to follow suit and assist UNDP in identifying a suitable recycling facility.  

 

The Netherlands has shown leadership in preventing the environmental disaster an oil spill from the FSO Safer would have caused, with also Dutch company Boskalis, via its subsidiary SMIT Salvage, tasked with the removal of the oil from the FSO. Referring to Dutch involvement in the Stop Red Sea Oil Pollution operation, Dutch Minister for Foreign Trade and Development Cooperation, Liesje Schreinemacher, announced that “The Netherlands will continue helping the UN to bring this to a good end.” 

"A good end entails ensuring that the FSO SAFER is recycled at a facility that fully respects labour rights, operates from a dry-dock or features on the European List of approved ship recycling facilities. The Dutch government is a pioneer in environmentally friendly technologies implementing sound life-cycle practices, and Boskalis has been at the forefront as one of the first ship owners in the world to adopt an ‘off the beach’ ship recycling policy. This should guide the so far successful Stop Red Sea Oil Pollution operation’s final and equally crucial stage."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

Shipping broker Clarkson, on behalf of the UNDP, has already received bids for the towing and scrapping of the vessel. The NGOs have urged UNDP to comply with international waste law and opt for a final destination that can guarantee practices beyond the weak standards set by the International Maritime Organisation’s Hong Kong Convention [1], and are aware that alternative and more sustainable solutions off the beach are at the UNDP’s disposal.

 

NOTES
 

[1] Several yards located on the beaches in India and Bangladesh and major cash buyers, which regularly sell end-of-life vessels for dirty and dangerous shipbreaking, have shown interest in scrapping the FSO SAFER. Facilities that practice the beaching method have a documented lack of capacity to ensure the environmentally sound management of hazardous wastes and are therefore likely to offer the highest price for the asset, leaving workers, local communities and the environment to pay the price of toxic exposure.

Press Release – NGOs warn that Hong Kong Convention will fail to ensure sustainable ship recycling

Treaty to continue toxic business-as-usual on the 
beaches of South Asia while undermining efforts for reform

 

The International Maritime Organisation’s (IMO) Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships [1] will enter into force in June 2025 as major flag state Liberia and the Government of Bangladesh, heavily pushed by Japan and Norway, have now ratified the Convention fourteen years after its adoption. NGOs warn, however, that its requirements fall short of ensuring ethical, safe and environmentally sound ship recycling and risk undermining existing laws and efforts to reform the sector’s dangerous and polluting practices.

"This international convention rubberstamps shipbreaking on tidal mudflats and ignores labour rights and international rules for hazardous waste management. It will only serve the interests of shipping companies to avoid paying the true cost of sustainable and ethical recycling and undercut efforts to level the playing field for responsible ship recyclers to compete. As it stands, the Hong Kong Convention undermines the overall credibility of not only its own stated objectives, but also that of the IMO [2]."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

NGOs world-wide [3], the UN Special Rapporteur on Toxics and Human Rights, the Centre for International Environmental Law and the European Parliament [4] have all exposed the fatal weakness of the Hong Kong Convention’s standards and enforcement mechanisms. Furthermore, the majority of the 191 countries party to the UNEP Basel Convention, which controls the global trade of hazardous wastes, including end-of-life ships, and bans the export of toxic wastes from OECD to non-OECD countries, found that the Hong Kong Convention fails to provide an equivalent level of control to the Basel Convention as it does not prevent the dumping of toxic ships in developing countries [5].

 

With its failure to outline robust environmental and social standards for the sound management of the many toxic substances contained in end-of-life ships, the Hong Kong Convention falls short of the Basel Convention and the more recent EU Ship Recycling Regulation [6]. It sets no requirements, beyond compliance with national rules for the management of hazardous wastes downstream. It endorses beaching, a practice long associated with pollution and health hazards for both workers and local communities. It also lacks provisions to protect workers engaged in shipbreaking operations, who often face precarious work environments, lack of protective equipment and limited access to medical facilities. 

 

Many beaching yards boast that they already comply with the Hong Kong Convention [7], but independent audits of these facilities by the European Commission have identified several serious problems that disqualify them from the EU List of approved ship recycling facilities [8]. Investigative journalists from BBC, French TV, DanWatch and Dutch program Zembla have also uncovered unacceptable conditions at these yards. 

"The entry-into-force of the flawed Hong Kong Convention is not a time for celebration, but it will allow for the reopening of the text. We will be calling for changes so that it meets expectations of environmental justice, labour rights and circular economy objectives, and calling on the European Union and responsible ship owners to ensure that the shipping sector does not get away with green-washing the current deplorable practices that would never be allowed in their home countries."
Rizwana Hasan - Director - Bangladesh Environmental Law Association (BELA)

Another major flaw inherent in the Hong Kong Convention is that the responsibility for its enforcement is only put on the end-of-life vessel’s flag state and the recycling state. In reality this means that grey- and black-listed end-of-life flag states such as Comoros, St Kitts and Nevis and Palau, notorious for their poor implementation of international maritime law and particularly popular for last voyages to the South Asian beaches, along with local authorities in South Asia which have done little to prevent the death of more than 430 workers since 2009, will be in charge of enforcement. They will be responsible without any independent control mechanisms in place and despite the fact that most end-of-life vessels are owned by European, East Asian and North American companies that possess more rigorous safeguards for proper waste management and human rights in their home territories.

 

Beaching yards in India and Bangladesh that already claim they comply with the Hong Kong Convention are backed by ship owners keen to maintain a cheap disposal route for their end-of-life vessels where the costs related to managing hazardous materials safely, including residue oils, asbestos and mercury, are not factored in. Instead the costs are born by workers, local communities and sensitive coastal environments. The harms caused include toxic exposure and loss of lives, limbs, livelihoods and biodiversity. Ship owners pay neither to prevent this harm in the first place, nor to compensate for or mitigate it. Externalising costs in this manner renders disposal of end-of-life ships artificially cheap resulting also in less economic incentive to design out toxic materials in the first place. 

"This is not a proud moment for IMO. It has been a fourteen years’ wait for a convention that does not solve the problems it was supposed to address. The Hong Kong Convention is already adopted by the sub-standard yards on the beaches in India and Bangladesh, so in practice, there will be no change, just ‘bad business as usual’. Eyes are now on the Basel Convention and the EU’s Ship Recycling Regulation. Both are important blueprints for the necessary reform of the IMO’s Hong Kong Convention. Europe in particular, with its large fleet, needs to continue to take the lead and support technology and incentives to make sure new alternative and competitive recycling facilities are established."
Sigurd Enge - Senior Advisor - Bellona Foundation
"It is imperative for the global community to recognise and address the loopholes that hamper the Hong Kong Convention, and assert the letter and intent of the Basel Convention which was to prevent the Global South from being the dumping ground of the rich and powerful industries and nations. The costs for sustainable ship recycling need to be internalised with the shipping sector, and urgent support to build capacity that meets industry best practice is necessary to manage the many vessels that will head for scrapping in the next years in a way that does not put workers, local communities and fragile ecosystems at risk."
Jim Puckett - Executive Director - Basel Action Network (BAN)

NOTES

 

[1] Adopted in 2009, the Hong Kong Convention seeks to establish guidelines and rules to better regulate the scrapping of end-of-life vessels.

 

[2] Already the IMO is under harsh criticism for failing to on climate change. Transparency International also released a blasting report on critical governance flaws at the IMO.

 

[3] See NGO Shipbreaking Briefing Paper May 2009.

 

[4] The European Parliament called for “concrete regulatory action at EU level that moves beyond the regrettably weak remedies of the IMO” in its Resolution of 26 March 2009 on an EU strategy for better ship dismantling.

 

[5] At the Basel COP 10 meeting in 2011, there was no consensus that the Hong Kong Convention provides an equivalent level of control to that provided in the Basel Convention - see Basel Decision BC-10/17. Since then, the Basel Ban Amendment has entered into global force, reducing even further the equivalency between the two regimes which inevitably entails that the two legal instruments will co-exist.

 

[6] The European Union adopted the Ship Recycling Regulation (EU SRR) in 2013. Whilst the Regulation brings forward the requirements of the Hong Kong Convention, it includes additional requirements related to downstream toxic waste management as well as labour rights. EU-flagged vessels above 500 GT must be recycled in safe and environmentally sound ship recycling facilities that are included on the European List of approved ship recycling facilities. The List was first established on 19 December 2016 and following on-site independent third party audits it is periodically updated to add additional compliant facilities, or, alternatively, to remove facilities which have ceased to comply.

 

[7] In the last years, there has been a proliferation of the so-called Statements of Compliance with the Hong Kong Convention, inspections conducted at yards on a business-to-business basis as yet another attempt by the industry to greenwash its dirty and dangerous practices. Facilities that lack infrastructure to contain pollution; lack protective equipment to prevent toxic exposure; have no hospitals to handle emergencies in the vicinity; and where systemic breaches of labour rights have been documented have been able to obtain so-called Statements of Compliance with the Hong Kong Convention.

 

[8] The findings of the EU audits include lack of infrastructure to contain pollutants; lack of capacity to manage several hazardous waste streams; breaches of labour rights; air, water and soil pollution levels higher than permitted thresholds; and lack of emergency response facilities. For more details see the audit reports.

 

Press Release – Human rights and environmental NGOs urge UNDP to ensure the clean and safe recycling of FSO Safer

In a letter addressed to the UNDP, the International Federation of Human Rights (FIDH), the Basel Action Network (BAN), and the NGO Shipbreaking Platform, representing a global coalition of human rights and environmental organisations, call for the recycling of the Floating Storage and Offloading (FSO) vessel SAFER in accordance with international law and UNDP's own ethical and sustainability policies.

 

The NGOs warn against the possibility of the FSO being scrapped at one of the notorious South Asian shipbreaking yards known for their poor working conditions and the irreversible harm their operations cause to public health and fragile ecosystems.

"Now that a successful operation has commenced for removing oil from the FSO SAFER [1], it is essential that the UNDP addresses the inherent risks associated with the cleaning of the vessel’s tanks and its scrapping. We urge the UNDP to exercise due diligence when selecting the final recycling destination."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

The FSO SAFER likely contains significant amounts of toxic substances and materials, including asbestos, mercury-contaminated oil residues and heavy metal-laden paints, that may cause damage to human health and the environment.

 

The UNDP must ensure compliance with the UN Basel Convention, which regulates the transboundary movement and disposal of hazardous wastes, and that the recycling of the FSO SAFER is carried out in a facility that respects international labour rights; guarantees full containment of pollutants via a dry-dock or equivalent infrastructure; and is capable of managing all hazardous materials onboard and embedded within the FSO’s structure in a safe and environmentally sound manner. In view of the vessel’s dire condition, precautions must furthermore be taken to avoid that the contaminated structure sinks during its transport to the recycling yard.

"The UNDP cannot allow its Stop Red Sea Oil Spill operation end with the FSO SAFER putting workers, local communities and the environment in South Asia at risk. The shipbreaking beaches in South Asia are already some of the most polluted beaches in the world. Alternatives exist [2], and the UNDP must opt a facility that operates in accordance with industry best practice and uses environmentally friendly technologies implementing sound life-cycle practices."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

NOTES
 

[1] The FSO SAFER, carrying approximately 1.1 million barrels of crude oil, has been laid-up since 2015 due to the conflict in Yemen. Its deteriorating condition poses a severe risk of the vessel breaking and causing a massive oil spill to the Red Sea which would represent an ecological and humanitarian disaster. In response to this imminent threat, the United Nations have prompted collaborative efforts to cover the costs related to the removal of the oil onboard and preparation of the vessel for recycling. Donors, private companies and members of the public have so far contributed $100 million toward the UN plan to prevent the spill, and Dutch company Boskalis, via its subsidiary SMIT Salvage, has now been tasked with the removal of the oil from the FSO. Simultaneously, shipping broker Clarkson, on behalf of UNDP, is currently accepting bids for the towing and scrapping of the vessel.

 

[2] See the recent publication Breaking Out: Anchoring Circular Innovation for Ship Recycling by the NGO Shipbreaking Platform.

 

Press Release – NGOs organise event on sustainable maritime transport on 31 May in Lisbon

On 31 May, between 2PM and 7:30PM, the NGOs ZERO, Sciaena, NGO Shipbreaking Platform and Circular Economy Portugal are organising the conference “Waves of change: towards circular and sustainable shipping" at Casa do Impacto in Lisbon. The international event will focus on the sustainability and circularity of the maritime sector, focusing on the entire ship’s life cycle. 

 

Regulating shipping currently presents the greatest challenges on the path to decarbonisation of the transport sector.  Truly sustainable approaches, encompassing circular economy principles, need to be applied to guarantee positive changes, such as a lower demand for raw materials, a global improvement in air quality, the prevention of the spreading of invasive species, and the reduction of noise pollution. Stakeholders representing civil society, industry and public bodies will prompt a constructive debate on these topics, highlighting various holistic solutions for the future of maritime transport. 

 

The event will be held in English and will include three panel discussions on ship design and ship building, ships’ operations and ship recycling, and a networking session. Registration is free, but mandatory through the link available here. Virtual attendance is not possible.

 

Contacts

Carolina Silva (ZERO) - +351 961077412

Ana Matias (Sciaena) - +351 915684976

 

 

Platform publishes South Asia Quarterly Update #33

In this quarterly publication, the NGO Shipbreaking Platform informs about the shipbreaking industry in Bangladesh, India and Pakistan. Providing an overview of accidents that took place on the beaches of South Asia and recent on-the-ground developments, including our activities, we aim to inform the public about the negative impacts of substandard shipbreaking practices as well as positive steps aimed at the realisation of environmental justice and the protection of workers’ rights. 

 

Click here or on the image below to access the full version of our quarterly report. 

Press Release – Local residents rally against shipbreaking operation in Union Bay, British Columbia

Local residents marched last Sunday at Union Bay, traditional unceded territory of First Nations within Baynes Sound, British Columbia, Canada, to protest against the dirty and dangerous scrapping operations carried out in the area by Deep Water Recovery Ltd (DWR). More than a hundred of people, including actress and activist Sarah Wayne Callies and MP Gord Johns, gathered at the Union Bay Community Hall demanding, once again, urgent action from federal, provincial and regional authorities.

 

First Nations, national NGOs and international groups, alongside local residents, have been opposing for more than two years the shipbreaking activities of DWR, which has been caught acting in contravention of laws several times, but has not yet been punished for it.

 

In 2022, the Comox Valley Regional District sought an injunction against DWR, accusing the company of violating regional bylaws. DWR has also been found to be out of compliance four times under British Columbia’s Environmental Management Act and Hazardous Waste Regulations. In fact, testing conducted at the site recently revealed concentrations of copper, lead, zync and cadmium above permitted levels. Still, operations at DWR continue, with the former US government-owned vessel NOAAS Miller Freeman (R 223) being slowly pulled ashore. Given its age and type, the NOAAS Miller Freeman is likely to contain high amounts of hazardous substances in its structures, such as toxic paints and asbestos. A petroleum spill already occurred on November 2022 as the vessel was being dragged onto the beach.

"Allowing in the first place the setting up of such a hazardous operation adjacent to a residential area and in an ecologically sensitive zone is unacceptable. The inability of competent authorities to prioritise public and environmental health in spite of the blatant disregard of international and national rules and standards at the shipbreaking plot is even more worrying. The NGO Shipbreaking Platform shows its full support to the local community of Baynes Sound and calls, once more, upon competent bodies to halt immediately all scrapping activities conducted by the operator."
Nicola Mulinaris - Senior Communication and Policy Advisor - NGO Shipbreaking Platform

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.