Tag: beaching

Platform publishes South Asia Quarterly Update #34

Posted on by Nicola Mulinaris

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

Posted on by Nicola Mulinaris

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

Posted on by Nicola Mulinaris

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

Posted on by Nicola Mulinaris

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 – Container shipping asked to clean up its act in view of upcoming scrapping wave


Posted on by Nicola Mulinaris

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.

 

Press Release – Platform publishes list of ships dismantled worldwide in 2022

Posted on by Nicola Mulinaris

Shipbreaking on the beaches of South Asia continues to cause serious harm to workers and the environment despite plunge in number of ships scrapped

 

According to new data released today by the NGO Shipbreaking Platform, 443 ocean-going commercial ships and offshore units were sold for scrapping in 2022. Of these, 292 large tankers, bulkers, floating platforms, cargo- and passenger ships ended up for dirty and dangerous breaking on tidal beaches in Bangladesh, India and Pakistan.

 

Whilst the South Asian shipbreaking yards experienced the lowest turnover in over a decade, with a significant drop in terms of the number of ships scrapped, they remained the preferred destination for end-of-life vessels, dismantling 80% of the global end-of-life gross tonnage. The reasons for the plunge in the number of vessels scrapped in 2022 are multiple, with high ocean freight rates that made it profitable to continue operating older vessels and banks’ shortages in providing credits to companies for the purchase of end-of-life assets identified as the main drivers.

"Companies have a duty to eliminate the negative impacts that their commercial decisions have on the environment and people. End-of-life vessels are hazardous waste, and taking them apart on tidal beaches is by far the worst industrial practice."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

In South Asia, workers – often exploited migrants – are exposed to immense risks. Dangerous working conditions, including fires and falling steel plates, kill or seriously injure numerous workers. Many more are sickened by exposure to toxic fumes and substances that can be found within the ships’ structures. Coastal biomes, and the local communities depending on them, are devastated by toxic spills and air pollution due to the lack of infrastructure to contain, properly manage and dispose of hazardous materials.

 

In 2022, at least 10 workers lost their lives and 33 workers suffered injuries when breaking apart vessels on the beach of Chattogram, Bangladesh. Local sources also reported three deaths in Alang, India, and three injuries in Gadani, Pakistan. Some of these accidents took place onboard vessels owned by well-known shipping companies, such as Berge Bulk, Sinokor and Winson Oil.

DUMPERS 2022 – Worst practices

 

The 2022 worst country dumper was China. Chinese owners sold 28 ships for scrapping in South Asia, most of which were beached in Bangladesh. Russia, Singapore, the United Arab Emirates and Greece follow with more than a dozen ships beached each.

 

Major dry bulk carrier Berge Bulk, which has figured amongst the worst corporate dumpers several years in a row, reached the top in 2022. The company scrapped four carriers in Bangladesh and India, reaching a total of 24 vessels beached in the last ten years. Berge Bulk’s scrapping practices stand in evident contrast with the company’s declared commitment to sustainability and safety. According to local sources, three separate accidents, causing injuries to three workers, occurred during the cutting of the BERGE KANGCHENJUNGA at Ferdous Steel yard in Bangladesh. On 3 March, Amirul broke his leg after a fall. On 27 April, an iron piece suddenly hit Sedan Das on his spine. On 2 August, Motin suffered burn injuries due to a fire. Shipping sources link cash buyer GMS to the sale of the BERGE KANGCHENJUNGA, re-named JENGA prior beaching.

 

Brazilian state-owned company Petrobras comes second for worst corporate practice. More than five years have passed since civil society organisations and trade unions urged the Brazilian government to stop the dumping of toxic end-of-life ships in the Global South. Yet, oil giant Petrobras sold another four of its old tankers and two of its old floating platforms for dismantling on South Asian beaches last year, reaching a total of 34 vessels beached in the last decade. The units were auctioned off to scrap dealers. According to shipping sources, at least three of the units were sold to cash buyer Best Oasis.

"In order to ensure clean and safe ship recycling off the beach, it is time for Brazil to introduce stricter requirements for the public auctions of end-of-life vessels and offshore units, and to properly enforce international legislation on hazardous waste exports. This continuous toxic dumping perpetrated by Petrobras and the scandal of the former aircraft carrier SÃO PAULO should have already served as a wake-up call."
Nicola Mulinaris - Senior Communication and Policy Advisor - NGO Shipbreaking Platform

BW Offshore is another well-known company that dumped its toxic units on the beach last year. On 21 April, a worker lost his life at the Indian yard Priya Blue Industries, where BW Offshore’s Floating Production Storage and Offloading (FPSO) CIDADE DE SÃO VICENTE was being cut. Assisted by Arctic Shipbrokers, Grieg Green and cash buyer Best Oasis, the deal was branded as a green sale.

 

Back in January 2019, Norwegian pension fund KLP had blacklisted Nordic American Tankers (NAT), a Bermuda-registered company controlled from Norway by Herbjørn Hanson, following the sale of several tankers for dirty and dangerous scrapping at South Asian beaching yards. Yet, NAT seems not to have improved its policy since, with two additional NAT vessels ending up on the beaches of India and Pakistan last year.

Environmental and labour laws that regulate ship recycling exist, but they are ignored and easily circumvented by ship owners, often with the aid of scrap dealers known as cash buyers. These pay the highest price for end-of-life vessels, and typically re-name, re-register and re-flag the vessels on their last voyage to the beaching yards. More than half of the ships sold to South Asia in 2022 changed flag to one of the grey- and black-listed flags of Cameroon, Comoros, Palau, St Kitts & Nevis and Tanzania, often just weeks before hitting the beach. At least eight of these flag changes enabled ship owners to circumvent the EU Ship Recycling Regulation. Seven of these units, including one owned by Italian Finbeta SpA, ended up on a beach instead of being recycled in an EU-approved facility as the Regulation requires.

"Existing laws are way too easy for ship owners to circumvent. The decisions to scrap are taken in offices in Hamburg, Athens, Antwerp, Copenhagen and other shipping hubs. This reality begs for the introduction and enforcement of measures that effectively hold the real beneficial owners of the vessels responsible in their own jurisdictions, regardless of the flags used and ports of departure for scrapping."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

In 2022, a total of 49 ships were dismantled in Aliağa, Turkey, a site where currently six EU-approved ship recycling yards are located. Civil society organisations have raised concerns over the ship recycling operations in the region and massively mobilised over the summer to stop the import of the toxic-laden aircraft carrier SÃO PAULO. They flag serious breaches of national laws related to environmental permits, pollution, occupational health and safety and waste management in the sector. Two facilities, Şimşekler and Işıksan, were removed from the EU List in 2022 due to their failure to comply with the requirements set in the EU Ship Recycling Regulation. Furthermore, recently published audit reports of two other yards reveal several problems.

"Now, given the awareness of the violations, our focus will be on enhancing and strengthening environmental standards and occupational health and safety practices so that the ship recycling sector fully respects workers, local communities and the environment."
Asli Odman - Academic and Volunteer - Istanbul Health and Safety Labour Watch

Dangerous and dirty practices are affecting also countries that rarely make ship recycling headlines. In Canada, the illegal breaking of barges and asbestos-laden vessels is negatively affecting the local residents and the indigenous people of Baynes Sound. On the opposite side of the Atlantic, the demolition of dozens of toxic ships is polluting the shores of Ghana.

"We urge Canadian and Ghanaian authorities to halt immediately these substandard practices, and take example from the existing EU legislation on ship recycling when developing new sets of national rules."
Nicola Mulinaris - Senior Communication and Policy Advisor - NGO Shipbreaking Platform

Looking ahead, the number of ships that will need to be dismantled is expected to surge. At the same time, the growing focus on circularity and the urgent need to reduce carbon emissions provide opportunities to transform the ship recycling sector. Already, forward-looking governments are developing policies to increase access to scrap steel for green steel production, coupling that with measures to encourage the development of sustainable ship recycling capacity. For instance, the United Arab Emirates have adopted a “no-beaching” rule and aim to attract vessels for dismantling in dry docks. The European Union’s Green Deal is, on its side, pushing major steel companies to explore ways of integrating ship recycling in their production line.

"A just transition in the ship recycling sector is possible. Clean and safe solutions are already available, and innovations ranging from robotics to water-jet cutting technologies will not only ensure safer practices but also render sustainable ship recycling more cost-effective. We call upon ship owners, especially the large containership companies that will have many vessels to scrap in 2023, to support the shift away from the beaching yards."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

Read more about the pioneers of green ship recycling in our Breaking Out magazine.

 

 

For the data visualization of 2022 shipbreaking records, click here. *

For the full Excel dataset of all ships dismantled worldwide in 2022, click here. *

 

* The data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders, and is cross-checked whenever possible. The data upon which this information is based is correct to the best of the Platform’s knowledge, and the Platform takes no responsibility for the accuracy of the information provided. The Platform will correct or complete data if any inaccuracy is signaled. All data which has been provided is publicly available and does not reveal any confidential business information.

 

Platform publishes South Asia Quarterly Update #32

Posted on by Nicola Mulinaris

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 – Polluting shipbreaking practices threaten Ghanian shores

Posted on by Nicola Mulinaris

In light of the recent infrastructure developments taking place at its main ports of Tema and Takoradi, Ghana is aiming to become the main integrated maritime hub of the west African subregion. Yet, certain unregulated practices, such as the demolition of end-of -life vessels, still represent a threat for the ecosystem and the health of the quarter of the country's population that lives along the coast. 

 

Due to the weak enforcement of environmental legislation, low labour costs and occupational safety standards, and the absence of a legal framework covering the recycling of obsolete vessels, dozens of ships have been arbitrarily dumped on Ghanian shores in the last years. Evans Ago Tetteh, PhD Adjunct Lecturer at the Regional Maritime University in Accra, recently reported on the present situation of ship demolition in Ghana, and provided evidence on the environmental harm caused on the beaches of Kpone by the spillage of hazardous substances, such as marine diesel oil. Some of the toxic vessels beached in Ghana have European ties. It is the case of the refrigerated cargo ship NAFTILOS, which was owned by Greek company Fairport Shipping Ltd and which maritime databases still list as laid-up. 

"Ship demolition is causing marine pollution in Kpone and the surrounding towns. Because of the marine oils released into the sea, the fish stock is being depleted, making local fishermen poorer. "
Evans Ago Tetteh - PhD Adjunct Lecturer - Regional Maritime University of Accra

 

Shipbreaking yards are granted licences by the Ghana Maritime Authority and permits by the Ghana Port and Harbours Authority, but neither entity follows through on the process to ensure that the scrapping process is conducted in an environmentally sound manner. To date, the Ghana Shipping Act 2003 (Act 645), the Ghana Maritime Pollution Act (Act 932), the Environmental Protection Act 1994 (Act 490) and the Hazardous and Electronic Waste Control Management Act 2016 (Act 917) are the only laws designed to regulate the ship recycling business, without any sector-specific rules. 

 

In recent years, the number of steel companies in Ghana has increased, particularly near the Tema Kpone industrial zone, as well as the country’s thirst for steel scrap. In light of this new demand for raw materials, the NGO Shipbreaking Platform is calling upon the government of Ghana to develop new legislation tailored to regulate ship recycling activities in line with European standards, and to set up a clean and safe industry with adequate downstream waste management facilities. The beaches are not a suitable place for the breaking of toxic vessels.

 

Platform publishes South Asia Quarterly Update #31

Posted on by Nicola Mulinaris

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. 

Platform News – Prison sentence for attempted illegal export of the Harrier reveals reckless actions by all parties involved

Posted on by Nicola Mulinaris

Due diligence in supply chain needed to curb environmental crime

 

In March, the Norwegian Court of Appeal convicted ship owner Georg Eide of complicity in an attempt to export the end-of-life vessel HARRIER (a.k.a. EIDE CARRIER and TIDE CARRIER) for scrapping in Pakistan, and fixed the sentence, as the District Court did on the first instance, to six months imprisonment. Eide’s second attempt to appeal was subsequently rejected by the Norwegian Supreme Court in June, therefore confirming the prison sentence.

 

The judgment, now available in English, clearly states that whether a ship owner sells a ship directly to a scrap yard on the beach in South Asia or uses an intermediary scrap dealer (a.k.a. cash buyer) to conduct the sale will not affect what degree the act merits punishment. 

 

The judgement also provides shocking insights into the role played by all parties involved in the sale and transport of the end-of-life vessel. At all steps along the way, the companies involved were knowledgeable about the intent to scrap the ship. They were also fully aware that it was illegal to scrap the vessel in South Asia, and assisted cash buyer Wirana in setting up a fraudulent tale of repair works in Dubai.

 

In 2015, after having been laid up for almost ten years, it was clear that the EIDE CARRIER did not have a bright future as an operational ship. Eide Group, the owner, was facing financial difficulties, and their bank, Nordea, incited Eide to sell unprofitable assets. Eide shared possible options with the bank, including the sale of the ship for scrapping. 

 

Shipbroking company Fearnley was hired to find a solution and introduced Eide to scrap dealer Wirana. Shortly after, in the summer of 2015, the vessel was sold to the scrap dealer for USD 5 mill. An e-mail from Wirana to Fearnley in June 2015 stated: “… Also, in view of the green activists etc., vessel NEVER to be declared as going for scrap from its current place.” Both Wirana and Fearnley were thus aware that the export from Norway to South Asia for scrapping was illegal.

 

At the same time, the NGO Shipbreaking Platform received an anonymous alert and contacted Eide to inform them that any attempt to send the vessel from Norway to South Asia would be a criminal act under European and Norwegian waste laws.

 

The vessel stayed in Norway. However, in February 2017, the EIDE CARRIER became TIDE CARRIER, changed its flag to that of Comoros and was boarded by a crew from Nabeel Ship Management with the aim of sailing to Pakistan for breaking. A false pretext that the vessel was heading for Dubai for repair and re-employment was provided to authorities.

 

The TIDE CARRIER never reached Pakistan as it faced engine problems shortly after having left the Norwegian west coast. Local authorities arrested the vessel upon finding onboard a “last voyage insurance for breaking in Pakistan” issued by insurer Skuld. The vessel changed its name (again) to HARRIER and its flag to Palau.

 

Maritime Warranty Surveyor (MWS) Aqualis Offshore had issued two certificates to the vessel, one for Gadani, Pakistan, and one for refurbishment in Dubai. In an e-mail shared by the Court of Appeal, Aqualis stated: “A second COA [certificate of approval] will also need to be issued to Dubai (for refurbishment) and left on the vessel for Suez Canal purposes (if they hear of a scrap ship then they become difficult)”.

"Without the assistance of shipbrokers, insurers and MWSs, illegal exports of end-of-life ships would not be possible. Illegal exports of hazardous waste are environmental crimes. This case is a stark reminder that all parties involved have a responsibility to conduct due diligence when selecting business partners."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

In July 2019, the prosecutors issued Wirana a NOK 7 million fine for having falsified papers to deceive Norwegian authorities about the ship's true destination and seaworthiness to allow the vessel to leave Norway. The cash buyer agreed to pay the fine, but without acknowledging wrongdoing. Also marine warranty surveyor Aqualis Offshore and insurance company Skuld Maritime Agency have been under investigation. The public prosecutors’ office recently dismissed the charge and withdrew the penalty charge notice issued to Aqualis Offshore for undisclosed reasons.

 

Several other cases of illegal exports involving the use of cash buyers are being investigated in Germany, the Netherlands and UK.