Platform News – Maersk maintains beaching mantra and chooses to ignore facts revealed by Danwatch

After investigative journalists have revealed the severe short-comings of Maersk’s shipbreaking practices in Alang, India, the shipping giant blatantly disregards the findings. In an official statement, Maersk defends its new practice of breaking ships on Indian beaches with tooth and nail without even mentioning the grave concerns raised by the Danish journalists [1]. Maersk's strategy seems to be to draw a veil of silence on the bad conditions in Alang whilst trying to squirm themselves out of other scandalous revelations. These include the recent illegal export of their heavily contaminated floating oil production and storage tanker “North Sea Producer” from the UK to Bangladesh and the uncovering of Maersk’s secret contracts that incentivised business partners to sell chartered ships for scrap to the worst yards.

 

After many years of proudly recycling its end-of-life ships in modern ship recycling yards, Maersk now tries to make the world believe that truly sustainable ship recycling off the beach is not affordable. The world’s largest container ship owner comes forward with this misleading statement while its competitor Hapag Lloyd makes it very clear: the German container ship line stays true to its commitment to clean and safe ship recycling off the beach in EU-approved facilities. Also ship owners from other sectors have been doing very well with their uncompromising approach to ship recycling, including Wilhelmsen, Wallenius, Hoegh, Grieg, CSL and Royal Dutch Boskalis.

"Maersk’s cant on their competitiveness is ludicrous: whom do they want to fool when they say that the company would risk its existence if it continued to recycle ships in state-of-the-art facilities? If smaller shipping lines are able to do it, why not the world’s largest ship owner? It is a question of properly accounting for the true costs of recycling throughout the life-cycle of a ship. We expect Maersk to ensure sound financial planning and long-term investments rather than short-term profit maximisation at end-of-life."
Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform

Maersk defends its U-turn from state-of-the-art facilities in China towards the beaches in India with the argument that it will assist the Alang yards to improve their standard. As a matter of fact, Maersk has not invested in any infrastructure in the Alang shipbreaking yards - they have even been warned that such investments might be a dead-end and too costly compared to using available docks or slip-ways. When asked, the company is consequently not able to put a number to its investments in Alang. All that Maersk has done is to write up a standard on paper and to employ staff in Alang to supervise its implementation. The Danwatch investigation has shown that Maersk’s yard, Shree Ram, is unable to live up to that standard and that Maersk’s presence at the yard has not helped to rectify the situation.

"Maersk keeps reeling off its narrative that shipbreaking is a significant employer in India. If workers in India are really their main concern, then why has Maersk not fixed the most basic things first: contracts for all workers, decent accommodation for all, adequate personal protective equipment – before putting its ships on the beach? How can they call shipbreaking ‘superior’ in an area that does not even have a hospital to treat severely injured workers? The truth is: it is all about profit over people."
Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform
© S Rahman

The NGO Shipbreaking Platform has been calling on Maersk to return to truly sustainable ship recycling and to invest in a model facility off the beach that is able to recycle its estimated 75-100 end-of-life ships under the high standards for environmental protection and occupational health and safety that have been deemed necessary under European law. Only then would Maersk be able to pride itself with supporting decent jobs in the ship recycling sector.

"The answer is not on the beaches of India, Bangladesh and Pakistan. The answer lies in innovation and engineering solutions for 21st century ship recycling: India might be ready, the beaches of Alang are not."
Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform

 

NOTES

 

[1] Four main Maersk claims that Danwatch has proven wrong:

- According to Maersk, its environmental recycling plan foresees that most of the vessel is dismantled without the ship parts being in contact with sand or water. The Platform and other critics have been arguing that the facilities lack large industrial cranes that can be deployed along the side of the ship. Cut sections therefore need to crash down onto the beach and the intertidal zone. During their research at Shree Ram, the journalists found cut sections that had been dropped into the intertidal zone, and were even cut down right on the sand. The claim of ‘no contact between cut parts and sand or water’ remains a myth. Apart from the negative environmental impact of the gravity method, Maersk does not at all address the scraping of toxic paints during the beaching process and the release of heavy metals, such as copper, into the environment.

- Maersk claims that appropriate protective equipment is available and mandatory to use. While the journalists have not checked whether PPEs are available, they have found that adequate protective equipment is simply not used. Workers welding and torch-cutting at Shree Ram were found wearing highly inflammable cotton T-shirt, inadequate or no respiratory protection, no goggles and no hearing protection. The investigations have found that the Maersk supervision on the ground is unable to ensure basic occupational health and safety measures.

- The journalists interviewed ten workers that are employed at Shree Ram. They workers have clearly identified that they work on the demolition of the Maersk Georgia and the Maersk Wyoming. None of them had a contract or any written document concerning their employment relationship. None of the men were aware of their rights. Maersk claims that all Shree Ram workers have contracts and has not been willing to respond to the findings.

- Maersk is aware of the fact that not all of Shree Ram workers are offered decent housing. The shipping giant has accepted this situation when selling the Maersk Wyoming and the Maersk Georgia without demanding basic infrastructure for workers as a precondition for doing business. Similarly, Maersk accepts the lack of a proper hospital at Alang where severe injuries could be treated.

 

 

Platform News – Investigative journalists catch Maersk red-handed in Alang

Conditions at beaching yard strongly criticised

 

Investigative journalists from Danwatch today release their comprehensive report on the reality inside Shree Ram shipbreaking yard in Alang, India, where the Maersk Georgia and Maersk Wyoming are currently being dismantled. The in-depth investigations reveal breaches of labour rights, workers exposed to grave risks for their health and safety, and severe environmental pollution caused by the breaking of ships in the intertidal zone. The story first came out on Sunday in the Danish newspaper Politiken, and has been covered widely in Danish media. The investigation not only confirms the serious concerns with the beaching method which the NGO Shipbreaking Platform has been voicing all along, but it shows that Maersk’s shipbreaking practices do not even remotely meet the standard the company has set for itself.

"The unacceptable conditions in the beaching facility in Alang which Maersk has been praising for its alleged high standards can no longer be ignored. Journalists have documented workers without contracts and men endangering their health and lives when exposed to toxic fumes and risks of explosions when torch-cutting in only T-shirts. When asked about the environmental impact of their activities in Alang, the world’s leading ship owner does not have an answer. Maersk’s trial and error approach in India is seriously flawed. The conditions under which the Maersk ships are being broken are even worse than what we expected."
Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform

The Platform and the Clean Shipping Coalition have strongly criticised Maersk for its U-turn from state-of-the-art ship recycling back to the beaching yards in India [1]. Over many months, the Platform has shared its concerns with the shipping line. The Platform’s detailed critique of the Maersk “Responsible Ship Recycling Standard” highlights why the Standard is far too weak to ensure the health and safety of workers and to provide safeguards against pollution.

 

Not only have NGOs warned Maersk of the serious risks, the shipping line itself commissioned a report on the pitfalls of breaking ships in the intertidal zone. Danish consultancy Litehauz highlighted severe pollution risks and the lack of solutions on the Alang beaches. The report clearly states that huge investments to build adequate infrastructure would be necessary in Alang, and questions the commercial viability of investing in beaching yards, especially because some of the problems are likely to be impossible to solve in the intertidal zone. Despite the warnings, Maersk chose to ignore the concerns of environmental and human rights experts.

"Maersk expects to make an extra profit of 150 million USD by selling off an estimated 70-100 ships to the beaching yards. While masking their U-turn as a ‘good deed’ for India, Maersk has not invested a single penny in new infrastructure in Alang. Instead of pocketing this huge extra profit, the world’s largest ship owner should just stick to its previous off-the-beach policy. And if Maersk wants to support a real shift in India, why are they not investing this amount in a state-of-the-art facility off the beach?"
Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform
© S Rahman

Danish experts with whom the journalists have shared their documentation were shocked to see the serious risks for workers’ health and safety as well as the grave environmental impact of Maersk’s practices in Alang. Had this happened in Denmark, the yard would have been closed on the spot, they say. The UN Special Rapporteur on Toxics and Human Rights, Baskut Tuncak, also emphasises that the beaching method by its nature does not allow for environmentally sound practices.

 

Only last December Shree Ram received a Statement of Compliance with the Hong Kong Convention from the Japanese classification society ClassNK. Such statements have been used by industry stakeholders to claim vast improvements in Alang and that the beaching method is able to provide acceptable levels of environmental protection. Shree Ram is supposed to be one of the “best” yards in Alang. The Danwatch revelations clearly show the wide discrepancy between the industry’s greenwashed presentation of Alang and the factual conditions in the yards. ClassNK did not want to comment on the breaches found by the journalists, but has earlier stated that their certification of four Alang yards is only based on procedural checks, not performance.

 

Members of the Danish Parliament, led by Pia Olsen Dyhr, former Minister of Trade and Transport, now request the Environment Minister to respond to whether Maersk has put pressure on the Danish government to promote the Alang beaching yards at the European level. Beaching is banned in Denmark and the rest of the EU. A new Regulation at the EU level asks the European Commission to publish a list of acceptable ship recycling facilities globally. Shree Ram is known to have applied to be on that list, but is not expected to be approved. The findings of the investigations by Danwatch and Politiken render this impossible.

"The findings at Shree Ram show how meaningless statements of compliance with the Hong Kong Convention are, and underlines that the Alang yards come nowhere close to providing the safeguards needed to ensure truly clean and safe ship recycling. The lobbyist of beaching have been cornered with their green-washing. In light of these revelations, their attempts to put pressure on the European Commission to list these beaching yards as acceptable seem even more pitiable."
Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform

 

NOTES

 

[1] See Platform press release.

 

 

Platform News – The new lobbyist of beaching, Maersk, ignores concerns of environmental and human rights experts

When Maersk decided earlier this year to sell two end-of-life ships to beaching yards in Alang, India, a broad coalition of European environmental and human rights NGOs denounced the move [1]. It is expected that Maersk has to scrap at least 20 ships in the near future in addition to the recently announced selling of a large number of supply vessels from its oil and gas subsidiaries.

"Environmental and human rights experts have criticised Maersk for taking this U-turn on its earlier progressive ship recycling policy for the sake of extra profits to be made at the beaching yards. The shipping line is no longer a ‘guiding star’ for the maritime industry as it has now become one of the strongest lobbyists for the low-cost method of beaching."
Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform

While Maersk has invited international and Danish journalists to a tour of the Alang shipbreaking yards this week, environmental and human rights experts deplore the lack of transparency and the unwillingness to share information on the environmental and social impacts of breaking the Wyoming and Georgia at Shree Ram shipbreaking yard in Alang.

"It is particulae are aware of the fact that Maersk is hosting a visit to Alang for selected journalists this week. Whilst we were initially also asked to join, we were suddenly uninvited. Maersk told us the visit was postponed. In reality, Maersk got cold feet and did not want their PR event disturbed by critical voices."
Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform

Strange déjà vu? Earlier this year, the Platform was also uninvited by the European Community of Shipowners’ Associations (ECSA) when they organised a two-day visit to Alang for selected EU Member State representatives and national ship owners’ associations [2]. Neither NGOs nor trade unions were allowed to join the visit. The Platform strongly criticised ECSA’s report from the visit for turning a blind eye on the problems of beaching [3].

 

Maersk had promised to carry out supposedly independent research on the social and working conditions in the shipbreaking yards of Alang. However, apart from dismissing the independent researchers it had originally contacted, there is no indication whether this research will now be independent or indeed be carried out at all.

 

"Maersk continues to ignore the many grave shortcomings of the beaching method, including its inability to ensure containment of pollutants in the intertidal zone and to guarantee the highest level of occupational safety. Maersk has failed to give satisfactory answers to the long list of critical questions we have raised regarding their new ship recycling standard and the way the Wyoming and Georgia are being broken."
Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform

The damaging environmental impacts of breaking ships in the intertidal zone of a beach are well known: slag, toxic paint particles and debris including metal scrap and plastics are released into the environment when the ship is torched. Large metal pieces are simply dropped onto the sand or into the sea. Alarming levels of air, water and soil contamination at beaching yards have clearly been documented [4]. Moreover, shipbreaking is a heavy industry with a high risk of accidents. The lack of a proper hospital in Alang has, however, not stopped Maersk from selling their ships to Shree Ram.

 

For the sake of the extra profits made by selling their ships to yards that have not invested in proper infrastructure, Maersk is now actively promoting the beaching method – a method that is banned in Europe, the US and China. Until recently, Maersk itself loudly denounced the beaching method for its poor standards and lack of innovation, now it threatens to flag out from the Danish registry if the EU does not give in and accept beaching yards, a move that has been strongly criticised by the Clean Shipping Coalition [5].

"We are calling for sustainable ship recycling off the beach and investments in modern ship recycling facilities. Instead of lobbying for the beaching method, the world’s biggest ship owner should align itself with the responsible ship owners that have committed to using facilities that pass the EU test of sustainable practices and should serve as the guiding star of innovation and engineering solutions."
Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform
This is a series on Maersk’s reversal on sustainability and lack of innovation, and the shortcomings of the beaching method.

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 Pakistan. Providing an overview of vessels broken on the beaches of South Asia, accidents, recent on-the-ground, legislative and political developments including our activities in South Asia 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.

 

In this edition you will find out more about a dramatic surge of fatal accidents in the Bangladesh shipbreaking yards in May-June and the case study of young worker Mominul who was crippled while breaking European ships, our follow up of the Kabir Steel case with businesses in the yard's value chain as well as the UN Special Rapporteur's critique of German shipbreaking practices in substandard beaching yards. Last but not least, read our reaction to ECSA's so-called fact-finding report on their visit to the Alang shipbreaking yards.

 

Platform News – ECSA’s Alang report turns a blind eye on problems of beaching method

The European Community Shipowners’ Association’s (ECSA) has published a report on their visit to the Alang shipbreaking yards in India last April. The NGO Shipbreaking Platform criticises the report for ignoring the many grave shortcomings of the beaching method, including its inability to ensure containment of pollutants and to guarantee occupational safety, and for simply echoing the yard owners' one-sided account of working and living conditions in Alang.

"This is not the report of a fact-finding mission, but a promotion brochure for the Indian beaching yards. There are no solutions provided to the serious concerns we have raised with ECSA, and no demands for improvement. The true intent is to gain support for the most convenient solution for ship owners: the continuation of the low-cost method of beaching that allows for maximum profit for shipping lines."
Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform

The damaging environmental impacts of breaking ships in the intertidal zone of a beach are well known: slag, toxic paint particles and debris including metal scrap and plastics are released into the environment when the ship is torched and large metal pieces are simply dropped onto the sand or into the sea. Alarming levels of air, water and soil contamination at beaching yards are well documented [1].

 

Whilst some yards in Alang have cemented the areas where they conduct secondary cutting, all yards in Alang conduct the primary cutting of the ship in the intertidal zone. ECSA argues that pollution in the intertidal zone can be controlled by only letting ‘clean’ blocks fall into the sea or onto the beach. ECSA cannot, however, explain how blocks are actually 'cleaned' and where the chemicals necessary in this process end up. The contamination by toxic anti-fouling paints that are accumulated in the sediments is completely ignored by ECSA, as are the difficulties of preventing and remediating oil spills in the intertidal zone.

 

Instead, ECSA heavily relies on the Statements of Compliance (SoC) with the Hong Kong Convention which have been issued by consultants to some of the yards in Alang, including by the classification societies ClassNK and RINA in their private capacity, in order to claim that beaching practices are sound.  These SoCs, however, only look at procedures and not the actual performance of the yards. Environmental monitoring is required by Indian law and whilst most yards in Alang may conduct such monitoring – and thus tick a box in the checklist for the SoC – astonishingly, the findings of the local companies hired by the yards to conduct the samplings have hardly found any contamination, if at all. Apart from such meaningless monitoring of environmental impacts, ECSA also easily refers to the environmental monitoring of the Gujarat Pollution Control Board (GPCB). The data available on the GPCB’s website is, however, far from detailed and several years old.

The ship owners’ association is also very gullible when it comes to assessing downstream waste management in Alang. Even though the association knows that Indian law allows for the resale of asbestos-containing material and that there is no incinerator for PCBs in India, ECSA simply trusts that the yard owners will ensure environmentally sound waste management on a voluntary basis, even if this creates higher costs for the yards.

 

Likewise, ECSA’s account of the social welfare system that yard owners have reportedly “voluntarily” put in place raises concerns. First and foremost, workers in India have a legal right to most of the mentioned benefits. Second, ECSA has not checked whether informal migrant workers, who make up the large majority of Alang workers, actually benefit from social welfare. A report from the renowned Tata Institute for Social Science reported dire working conditions in Alang, including the lack of contracts, pension schemes and insurance. Most workers in Alang do not have access to decent accommodation but live in makeshift shacks. The yard owners have been promising for many years that accommodation blocks will be set up; however, the large majority of workers currently remain in roadside slums while proper housing is only slowly being built for a small number of the total workforce.

 

Instead of consulting the trade unions or researchers who have looked into these important questions, ECSA blindly trusts the yard owners who misleadingly portray obligations they actually have as employers under Indian law anyway as laudable corporate social responsibility. And, while ECSA praises the 'willingness and openness of the Indian yard owners to receive the delegation', Indian and international NGOs were excluded from participating to the visit and ECSA did not deem it necessary to meet with trade unions and workers themselves.

"It is particularity cynical when ECSA reports that the Gujarat Maritime Board (GMB) - a Government body that actively keeps NGOs and other critical voices outside the yards - was ‘liaising with numerous social and environmental NGOs’: GMB does not even answer an email when we request a copy of the accident statistics which they have to keep, and does not have a meaningful exchange with any of the civil society organisations that have been working on the issue for many years."
Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform

Shipbreaking is a heavy industry with a high risk of accident. Though ECSA found that there is only a rudimentary first aid centre in Alang and no functional hospital in the close vicinity, the ship owners’ association does not demand an immediate remedy to the unacceptable situation. The GMB’s accident statistics that it shared with ECSA show that between May 2015 and January 2016 at least 5 workers were killed in the yards. During this period the local steel market was very weak and many Alang yards were forced to close. The workforce was at that time reported to have been reduced to less than 5.000 workers. The accident rate is thus alarmingly high, notwithstanding that the GMB statistics do not include severe injuries and maimed workers. The many toxic materials found within the ship structure pose further serious health risks to the workers, and while ECSA reports that there are medical check-ups for workers in Alang, it is doubtful whether specific tests such as for heavy metal poising are conducted and that occupational diseases are properly detected and reported.

 

"EU law-makers who have sought to regulate the substandard practices of European ship owners, by disapproving the beaching method, have been accused by ECSA of being ‘neo-colonial’. While the regulation of transnational business is actually a way to curb post-colonial exploitation structures perpetuated by European businesses, what is truly neo-colonial is ECSA's acceptance of lower environmental, health and safety standards for people and the environment in India. If European ship owners really want to be a driving force for sustainable development in India then why do they not ensure investment in and knowledge transfer for state-of-the-art ship recycling off the beach?"
Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform
Leela yard_HKC ClassNK certified (©ECSA – 29.04.2016)

Platform News – Surge of fatal accidents in Chittagong

10 shipbreaking workers killed or severely injured in one month only

 

At least five shipbreaking workers have been killed and five more severely injured in a series of fatal accidents in Bangladesh in one month only. On 23 May, 21-year old Rubel died at Seiko Steel shipbreaking yard when he fell from great heights. He was working without safety equipment. Only six days later, on 29 May, 5 workers were struck by falling steel plates at the same yard which is also referred to as Darussalam or Madina Enterprise. One worker died on the spot, another in hospital. The three remaining workers were severely injured. In a third accident on 5 June at Laskar Shipbreaking, 35-year old Babul was crushed by a falling steel plate. On 19 June, two workers fell victim to a cylinder blast at Bhatiary Steel shipbreaking yard. One of the workers, Swapan, died in hospital three days later, while Mayching suffers from severe burn wounds in his face and upper body. He is struggling for his life. On 23 June, Samesh suffered severe injuries from a fall at Kabir Steel, a yard that was in the headlines in April after Kabir’s private security personnel shot at workers and locals protesting a fatal accident.

"This horrific series of accidents shows that occupational health and safety measures are absent. We are witnessing the same accidents again and again: workers are not equipped with safety harnesses and fall to their death. Others are crushed under heavy steel parts as a consequence of the dangerous gravity method by which cut steel sections are simply dropped into the sea and on the beach. Gas cylinders cannot be handled safely on the beach and explosions cause death and terrible burn wounds. As long as ships are scrapped on the beaches, workers will continue to die."
Muhammed Ali Shahin - Bangladesh Coordinator - NGO Shipbreaking Platform

As documented by the NGO Shipbreaking Platform before, European-owned vessels are often involved in these accidents. The two accidents at Seiko Steel occurred while the workers dismantled the German-owned vessel Renate N. (IMO 9006851). The demolition of the ship, whose last beneficial owner was the Hamburg-based Neu Seeschifffahrt, cost the life of three workers, and severely injured three additional workers. German shipping companies, except for industry leader Hapag Lloyd, are known to show little interest in the negative environmental and social impact of their shipbreaking practices. They simply sell their end-of-life vessels to beaching yards, including the worst in Bangladesh, with the help of cash buyers.

 

Recently, representatives of the International Maritime Organisation (IMO), which is implementing a NORAD-funded project in Bangladesh to improve conditions in the shipbreaking yards, presented their work on assessing the social and economic impacts of the industry in Chittagong. Bangladesh members of the Platform assisted the presentation and are concerned that human rights abuses and pollution caused by the shipbreaking industry will be side-lined in the NORAD-funded study.

"Figures on GDP contribution, tax income and the amount of scrap steel imported through shipbreaking have always been used to legitimise this industry in Bangladesh. What is urgently needed is an honest cost-benefit analysis bringing environmental and human costs of beaching into the equation. What benefit remains once we deduct the costs for massive coastal pollution, the threatened livelihoods of local fisher folk, the accumulation of millions of tons of hazardous waste over decades, dead workers whose families are thrown back into extreme poverty, crippled young men without a future, occupational diseases, and illegal child labour keeping young workers out of school while exposing them so severe health risk?"
Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform

The series of fatal accidents have sparked local resistance. On 10 June, the Shipbreaking Workers Trade Union Forum together with the Bangladesh Institute for Labour Studies (BILS) organised a human chain in Sitakunda, the shipbreaking area, to protest the recent deaths. BILS and the trade unionists met with the victims’ families and visited the graves of workers recently killed in shipbreaking. The Shipbreaking Workers Trade Union Forum also handed over a letter to the president of the Bangladesh Shipbreakers Association (BSBA) demanding proper investigation and the payment of compensation owed to the families of dead workers and those workers who suffered from injuries.

 

The Platform calls on the Government of Bangladesh to investigate these accidents and to sanction yards with regular fatal and severe accidents, such as Kabir Steel and Seiko Steel. Moreover, the Platform demands that European ship owners stop selling their end-of-life vessels to the beaching yards of Bangladesh. It is not acceptable to turn a blind eye on the precarious situation for the sake of maximum profit – European ship owners are fully aware of the dire conditions in Chittagong and more sustainable alternatives to the beaching method exist.

 

© BILS – Trade unionists visit grave of killed worker

 

 

Platform News – Clean Shipping Coalition: Maersk undermines its reputation with plan to circumvent ship recycling law

The Clean Shipping Coalition criticises container ship giant Maersk for its statement that is considers to flag out end-of-life vessels from the Danish or other European registries in order to circumvent the European Ship Recycling Regulation. The Clean Shipping Coalition, a global coalition of nine organisations promoting sustainable shipping, argues that Maersk’s move “seriously undermines its credibility as a responsible ship operator”.

"Maersk is a European company and should abide by European laws. Suggesting that it might use a flag of convenience to escape EU ship breaking rules designed to protect the environment and worker safety is scandalous, and will seriously undermine its credibility as a responsible ship owner and operator."
John Maggs - Senior Policy Advisor at Seas At Risk and President of the Clean Shipping Coalition
"While Maersk supports innovation in reducing air polluting emissions, this move shows a cavalier attitude towards the environmental impacts of dismantling ships in the intertidal zone. Maersk needs to reverse course on practices that it previously denounced and that would never be allowed in Europe."
Sotiris Raptis - Shipping Officer - Transport & Environment

Maersk has recently decided to go back to India to have its old ships scrapped in yards that operate breaking activities in the intertidal zone of the beach. These yards will not be listed by the European Commission as they cannot comply with the requirements under the European Ship Recycling Regulation.

"Maersk has sent a clear signal: either European environmental regulation accommodates for its practices in India, or the world’s largest ship owner will just ignore the Ship Recycling Regulation by flagging out. The threat to resort to non-European flags amounts to blackmailing law makers who seek to ensure that European ship owners have to maintain European standards in their business activities around the world."
Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform

Click here to access the Clean Shipping Coalition's press release.

 

Platform News – Norway’s largest Pension Fund highlights human rights and environmental risks related to shipbreaking in South Asia

KLP, Norway’s largest pension fund [1], commissioned the International Law and Policy Institute (ILPI) [2] to write a report on the human rights and environmental risks related to the current practice of dismantling end-of-life ships on intertidal beaches. The report entitled Shipbreaking practices in Bangladesh, India and Pakistan. An investor perspective on the human rights and environmental impacts of beaching was released last week and examines the shipbreaking practices in Bangladesh, India and Pakistan in light of internationally recognised frameworks for responsible business conduct, as well as the practice of the Council on Ethics for the Norwegian Governmental Pension Fund.

 

The report argues that the responsibility of companies operating in the global market place does not stop at its own doorstep, but extends to adverse human rights impacts in the entire value chain. KLP joins a number of other investors and clients of shipping [3] that increasingly raise concerns over the current conditions of the shipbreaking industry in South Asia.

"The dismantling of ships using the ‘beaching’ method as it is practiced on the beaches of South Asia is dangerous for people and the environment."
Jeanett Bergan - Head of responsible investment - KLP

International standards by which corporate responsibility can be measured include the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles for Business and Human Rights (UNGP). Companies are required to carry out a risk-based due diligence with respect to the human rights as well as environmental impact of their business activities, including their value chain.

 

In the report’s foreword, CEO of KLP, Håvard Gulbrandsen, states: “We hope that the report can help raise awareness of the severe human and environmental risks beaching can entail for shipping industry companies, their customers, and also for other investors. […] KLP hopes to encourage investors to work together to engage with companies on improving labour and environmental conditions. The shipping industry is and will be an important part of Norwegian investors' portfolios for the foreseeable future. KLP's goal is to work towards a future where responsible shipbreaking is the industry standard.”

 

 

NOTES

 

[1] KLP is Norway's largest life insurance company. Kommunal Landspensjonskasse (KLP) delivers financial and insurance services to the public sector, enterprises associated with the public sector and their employees.

 

[2] International Law and Policy Institute (ILPI) is an independent institute focusing on good governance, peace and conflict, and international law. Their approach to solving global challenges is based on the integration of law and social sciences and on bridging the gap between academia and politics. They provide research, analysis, policy advice, process support and training to clients ranging from private companies and institutions to governments and international organisations.

 

[3] Major companies such as H&M, Tetra Laval, ABB, Philips, Volvo and Volkswagen do not want to be associated with substandard shipbreaking practices in South Asia and have asked their forwarders – the shipping companies they use to transport their goods – to adopt sustainable ship recycling policies. For more information click here.

 

 

Platform News – UN Special Rapporteur concerned about German shipbreaking practices

In a written submission to the German Government, UN Special Rapporteur Baskut Tuncak has expressed serious concerns related to the substandard shipbreaking practices of German ship owners, in particular fatalities and toxic chemical exposure of workers and the local population. The Special Rapporteur on the implications for human rights of the environmentally sound management and disposal of hazardous substances and wastes has raised shipbreaking as one example where German companies face challenges to prevent harm caused by toxic and hazardous substances.

 

German ship owners operate the world’s third largest merchant fleet (in terms of number of vessels), and have been linked to fatalities and toxic chemical exposure of workers and local populations including children, who dismantle end-of-life ships in deadly conditions. In 2014, German ship owners sold a record high 95% of their end-of-life tonnage for substandard breaking on the beaches of South Asia,” he writes.

 

The Special Rapporteur argues that the preparation of the National Action Plan on Business and Human Rights, which is currently being developed under the lead of the German Foreign Office, provides an opportunity to address the challenges related to the protection of human rights in the business sphere. He calls on the Government to ensure that companies reduce the use of hazardous substances and prevent double standards. Moreover, he calls on the German Government “to create the much needed incentives and frameworks for German businesses to foster a positive human rights record”. The Special Rapporteur undertook an official country visit to Germany late in 2015, where he met with key stakeholders on the National Action Plan on Business and Human Rights.

"We could not agree more with the Special Rapporteur’s conclusions. German ship owners need to take responsibility for sustainable recycling and stop the dumping of toxic end-of-life vessels via cash buyers in developing countries. When it comes to end-of-life management, human rights due diligence translates into the ship owners’ responsibility to prevent environmental pollution and the workers’ exposure to hazardous substances."
Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform

The NGO Shipbreaking Platform calls on the German Government to raise the issue with the shipping community and to address their unacceptable practices in the National Action Plan. In 2015 alone, 23 large commercial vessels from Germany ended up in substandard shipbreaking yards, making German ship owners the fifth biggest dumpers globally. Several German ships were broken down in Bangladesh where environmental pollution, hazardous waste dumping and working conditions are the worst. The Platform has been able to link fatal and severe accidents in Indian and Bangladeshi shipbreaking yards to the demolition of German vessels. The latest severe accident related to a German ship owner concerns Hamburg-based ship owner Neu Seeschiffahrt GmbH who sold its end-of-life ore carrier RENATE N (IMO 9006851) to Seiko Steel / Darussalam Enterprise with the help of cash buyer Wirana this February. Mominul, an only 20 years old worker, was severely injured when he fell from great heights working without adequate protection gear. He will remain disabled for the rest of his life. The yard management has not paid for the necessary operation only available in a specialised hospital.

 

Apart from Germany’s largest ship owner Hapag Lloyd, which has a progressive ship recycling policy, the rest of the ship-owning community has remained shamefully inactive with regards to finding sustainable and safe solutions to the issue.

 

More information from the Business & Human Rights Resource Centre.

 

Platform News – Indian NGOs voice concerns as ship owners promote beaching

Indian NGOs voice serious concerns regarding the beaching of end-of-life vessels in Alang in reaction to the recent visit to the Alang shipbreaking yards organised by ECSA (European Community Shipowners’ Association). Late in April, the European ship owners had invited government representatives from France, Germany and Belgium, as well as the European Commission to a promotional tour of Alang. NGOs, including the NGO Shipbreaking Platform and its Indian members, were not allowed to join the visit. Additionally, ECSA did not take the time to meet with the local trade union or the affected workers themselves.

"ECSA should be aware of the fact that environmental groups in India remain very critical with regards to the state of the shipbreaking industry in Alang. None of the yards in Alang have to undergo an environmental impact assessment (EIA) even when they open new yards or set up new infrastructure. EIAs are required by the law, and they would ensure a transparent process, including a proper assessment of the environmental impacts of the industry, as well as allow for civil society and local communities such as fishermen to express their views."
Ritwick Dutta - Advocate - Legal Initiative for Forest and Environment (LIFE)

Indian NGOs are concerned about the negative environmental impact of dismantling end-of-life vessels in the intertidal zone where large amounts of debris, including toxic paint chips, are released, accumulate in the environment and are washed out by the tide. Moreover, the secondary cutting areas, which have been concreted in some of the beaching yards, show cracks in the surface, which raises doubts as to whether they can qualify as impermeable floors.

"The shipping industry often forgets that shipbreaking is not only about recycling, but also generates hazardous wastes that need to be disposed of in an environmentally sound manner. However, in India, the enforcement of hazardous waste rules is not very effective and systems for tracking waste are inadequate. This results in leakages of hazardous waste. There is also no incinerator available to destroy PCBs. Moreover: why should India be responsible for the disposal of hazardous wastes belonging to foreign ship owners?"
Satish Sinha - Toxic Links

Local environmental groups have submitted letters to the European Commission highlighting pollution caused by the beaching method, the lack of transparent and adequate downstream management, as well as labour rights violations. The letters sent by Gujarati NGOs Paryavaran Mitra and Machimar Adhikar Sangarsh Sangstha welcome that the EU has taken “a strong stance against the continued acceptance of breaking ships directly on the beach”, a practice which is banned in other parts of the world, as the local environmentalists argue.

 

ECSA and its members have found a convenient solution in referring to the Hong Kong Convention (HKC), an IMO Convention that is unlikely to enter into force any day soon: the HKC does not ban the beaching method and it does not introduce strict rules on downstream waste management. Moreover, anyone can hand out Statements of Compliance (SOCs) to shipbreaking yards claiming they operate in line with the convention. While some certifiers act with more diligence, others have started to offer cheaper and quicker certifications. It is expected that many yards will soon hold a HKC compliance certificate. This is a development similar to ISO 30.000, for which most yards in India and Bangladesh were quick to produce certificates, rendering the standard meaningless.

"We share the Gujarat-based NGOs’ concerns and demand that European ship owners do not settle for double standards. Ship owners should only use facilities that operate at a level which is accepted in the European Union. We and our Indian partners believe that the environment, local communities and workers in India deserve the same level of protection which is reflected in the European Ship Recycling Regulation."
Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform