Tag: case

Press Release – Sale of asbestos-laden aircraft carrier São Paulo raises concerns

Posted on by Nicola Mulinaris

The NGO Shipbreaking Platform, Basel Action Network (BAN), BAN Asbestos France, International Ban Asbestos Secretariat (IBAS), İstanbul Isig Meclisi and Brazilian ABREA have alerted the Turkish Ministry of Environment and Urbanization about the legal, environmental and health risks linked to breaking the aircraft carrier São Paulo (ex Foch). 

 

Already last year, the NGOs called upon both Brazilian and French authorities to ensure the safe and environmentally sound recycling of the Clemenceau’s sister ship, and recommended the use of one of the yards included in the EU list of approved ship recycling facilities, which is limited to vetted non-beaching operations in OECD countries. After a lengthy and tortuous auction process, the São Paulo was finally sold to Turkish EU-listed yard Sök Denizcilik and Ticaret Limited.

 

Now, the NGOs are calling upon Turkish authorities to ensure a proper characterization of the hazardous wastes on board the São Paulo so that the export and subsequent management of the toxics can be done in an environmentally sound manner. Like its infamous sister ship Clemenceau, whose misguided export to India was recalled to Europe at great expense due to violations of the Basel Convention, the São Paulo contains large amounts of hazardous substances within its structure, and is thus considered a hazardous waste under the Basel Convention. [1]  

 

In view of the particularly large amounts of asbestos and other hazardous materials likely to be embedded within the vessel’s structure, local civil society groups, political leaders, technical experts and union organisers are now stepping out in strong opposition to the import of the vessel to Turkey. They have raised legitimate concerns about the lack of transparency on how asbestos and other wastes are managed [2], and that the price quoted for the purchase of the aircraft carrier is not financially viable if all the proper precautions are to be observed during the recycling of the vessel and the disposal of the hazardous wastes. No Inventory of Hazardous Materials (IHM) was provided during the sale and bidding process for the São Paulo, and it remains uncertain as to whether a proper independent audit or IHM has been performed since.  

 

The NGOs are calling for an independent assessment of whether the plans on how to remove and dispose of the hazardous wastes on board the São Paulo meet the requirements for environmentally sound management and ensure that workers and local communities are not exposed to any risks. Given the very hazardous nature of the military vessel's materials, the shipment from Brazil and subsequent management plans should be fully transparent to any impacted communities and be supported by them.    

 

Click here to access the open letter addressed to the Turkish Ministry of Environment and Urbanization.

São Paulo aircraft carrier in Rio de Janeiro, 2019

 

NOTES

 

[1] Based on the audits performed on the Clemenceau, it is estimated that São Paulo contains around 900 tons of asbestos and asbestos-containing materials, hundreds of tons of Polychlorinated Biphenyl (PCB)-containing materials and large quantities of toxic heavy metals on-board.

 

[2] Answering a Parliamentary Motion on 20 May 2021, the Turkish Ministry of Environment and Urbanization stated that 714 ships have been dismantled in Aliağa in the last five years, resulting in the disposal of 74.325 tons of hazardous waste, including approximately 250 tons of asbestos. The figure for asbestos seems grossly underestimated, taking into account that the yards in Aliağa have dismantled numerous military vessels; oil and gas units; and also older vintage RoRo/passenger ships operating in the Mediterranean, all of which are expected to contain large amounts of asbestos-contaminated materials.

 

 

 

Press Release – Pakistani workers poisoned during scrapping of infamous mercury-laden tanker

Posted on by Nicola Mulinaris

The Floating Storage and Offloading (FSO) tanker J. NAT has been beached on the shipbreaking shores of Gadani, Pakistan despite clear warnings by Interpol and international civil society groups that the vessel contains high levels of toxics. 

 

For more than a year the vessel has been under the spotlight of enforcement agencies and public watchdogs for its illegal export from Indonesia and the multiple attempts to illegally scrap it in South Asia. In Bangladesh and India, local authorities banned its entry due to the dangerous presence of hazardous substances in its steel structures, ballast waters, oil slops and oil sludges following alerts by NGOs. In an attempt to conceal the ship’s identity, its name has been changed several times, from J. NAT to RADIANT to CHERISH, and its real-time location concealed. After several months off the radar, the vessel recently reappeared in Mumbai before initiating its final voyage towards Pakistan.

 

Despite the risks linked to the presence of hazardous substances onboard the vessel, workers were instructed to initiate its scrapping at Plot 60 on the Gadani shipbreaking beach. Local media reports that mercury-contaminated oil sludge was removed from the ship and filled in drums for sale, with workers complaining of severe burning, rushes on their hands and face, and breathing difficulties. It is further likely that the vessel's steel is contaminated by mercury, which will release extremely toxic vapours when heated by for example torch-blowers [1]. Exposure to mercury, even at low levels, has been linked to central nervous system damage, kidney and liver impairment, reproductive and developmental disorders, defects in foetuses and learning deficits. 

 

Dismantling operations of the J. NAT have now been halted by local authorities, and an investigation has been launched. It is not the first time the yard owner, Dewan Rizwan, a former Chairman of the Gadani Shipbreaking Owners Association, has exposed workers to serious risk. At least five workers died in a fire onboard a ship at his yard in January 2017.

 

The NGO Shipbreaking Platform, Basel Action Network (BAN), European Environmental Bureau (EEB), IPEN (International Pollutants Elimination Network), Nexus3 Foundation, and Zero Mercury Working Group are now urging Pakistani authorities to keep the yard sealed, and call on Indonesian authorities to take back the waste in line with international law. [2]  

"This case is a shocking example of how companies make profits on the backs of vulnerable workers and coastal environments. It is an environmental crime to dodge international laws that ban the trade of hazardous wastes, and the shipping industry has a duty of care to ensure human rights due diligence when selling their obsolete assets. "
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

The harsh working conditions at Gadani became widely known after the explosion on 1 November 2016, the worst tragedy in the history of shipbreaking. At least 29 workers were then killed and more than 60 workers were reported injured, many of them suffering severe burn wounds. Fires, explosions, falls from great height and falling steel blocks kill numerous workers each year at the South Asian shipbreaking yards. 

 

IndustriAll-affiliated Pakistan National Trade Union Federation (NTUF) has voiced strong concerns related to systemic breaches of basic labour rights and occupational health and safety. Most of the shipbreaking workers are migrant workers from the poorest parts of Pakistan, including Khyber Pakhtunkhwa. They leave their families behind as there is no appropriate housing or schooling available in Gadani. Workers lack contractual arrangements with the yard management and have to work very long hours without extra pay, no paid holidays or social benefits, such as social security and pension.

 

As in Chattogram and Alang-Sosiya, the shipbreaking yards operate on a tidal beach, causing pollution to both soil and water. The area is void of hazardous waste disposal facilities, so toxics are simply dumped in the sea or outside the shipbreaking plots. A recent study shows elevated concentrations of mercury and methylmercury in the Gadani shipbreaking area. Local activists have filed a complaint under the Balochistan Environmental Protection Act demanding that shipbreaking activities must operate in line with the Basel Convention. So far, the Government has not initiated the necessary changes to ensure a move of the industry to proper facilities and investments in capacity for downstream waste management. 

 

Following the explosion of 1 November 2016, there has been increased awareness, nationally and internationally, of the dangers faced by the workers in the shipbreaking yards in Pakistan. This led to a moratorium on the import and cutting of tankers in Gadani. The ban has since been lifted, but without concrete measures in place to prevent the recurrence of these tragedies. Berge Bulk, Eurotankers, Petrobras, Polaris Shipping and Sinokor are amongst the shipping companies that have selected dirty and dangerous scrapping in Gadani in the last twelve months.

 

The Platform documents the breaking of floating oil and gas units, including drill ships, floating platforms, jack-up rigs and FPSOs/FSOs. An increasing number are beached in South Asia, including units owned by Diamond Offshore, Maersk, Odebrecht, SAIPEM, SBM Offshore and Transocean. As the J. NAT, SBM’s mercury-laden tanker YETAGUN was illegally exported from Indonesia. Its scrapping on the Indian beach of Alang was investigated by Dutch media Zembla and revealed that workers were unknowingly exposed to mercury contamination. 

 

 

 

NOTES

 

[1] Mercury will remain as a thin invisible coating of metal structures used in the oil and gas processing sector. High concentrations of mercury were documented to have accumulated on and in the steel of the tanks of another unit that operated in the same geographical area, the FSO YETAGUN. Mercury is typically absorbed into the surface of the carbon steel tank walls, piping and pumps. When heated up by simple methods such as sand blasting, water blasting, grinding and gas axing (oxy-acetylene cutting torch) extremely toxic mercury vapor is released in high concentrations which will bypass most commercial personal protection equipment (PPE).

 

[2] Pakistan and Indonesia are both signatories to the Basel Convention on the Control of Transboundary Movements of Hazardous Waste and their Disposal. Under this Convention, the trade in mercury and several other hazardous wastes that are contained within the structure of the FSO J. NAT is strictly controlled. The import of the vessel requires that there is prior informed consent (PIC) between Indonesian and Pakistani authorities and that the declarations of hazardous materials left on board must reflect actual conditions. Moreover, the Convention requires that no export be made if there is reason to believe that the recycling or waste management facilities employed for the materials will not constitute environmentally sound management under the Convention. The shipbreaking yards that operate on the tidal beach of Gadani are well-known for their dangerous and polluting practices. 

 

Indonesia and Pakistan are also parties to the Minamata Convention. The oil and gas sector is an important source of mercury emissions and its floating storage, production and offloading units will be contaminated. Measures should be taken by the oil and gas sector to ensure the safe removal, storage and disposal of this highly toxic substance.

Press Release – Platform publishes list of ships dismantled worldwide in 2020

Posted on by Nicola Mulinaris

The shipping industry continues to exploit workers and the environment for profit

 

According to new data released today by the NGO Shipbreaking Platform, 630 ocean-going commercial ships and offshore units were sold to the scrap yards in 2020. Of these vessels, 446 large tankers, bulkers, floating platforms, cargo- and passenger ships were broken down on three beaches in South Asia, amounting to near 90% of the gross tonnage dismantled globally.

 

Ships are considered hazardous waste under international environmental law as they contain many toxic materials and substances within their structures, and onboard as residues. These toxics include, amongst others, cadmium, lead batteries, asbestos, mercury, ozone depleting substances, PAHs, and residue oils, which all need to be managed in a safe and environmentally sound manner. Their export from developed to developing countries is banned by UNEP’s Basel Convention.

 

On the beaches of Alang in India, Chattogram in Bangladesh, and Gadani in Pakistan, where near 90% of the global world tonnage was scrapped last year, the negative consequences of shipbreaking are real and felt by many. Workers – often exploited migrants, some of them children – are exposed to immense risks. They are killed or seriously injured by fires and falling steel plates, and sickened by exposure to toxic fumes and substances. 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 the many hazardous materials embedded in the ships. 

 

"It is a scandal that laws and standards aimed at protecting people and the environment are ignored when scrapping the near totality of the global fleet. Governments, the clients, financiers and insurers of shipping, as well as the employees of shipping, need to take a much stronger stance against this exploitation of vulnerable communities and fragile ecosystems."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

Last year, at least 10 workers lost their lives when breaking apart vessels in Bangladesh. At least another 14 were severely injured. Despite repeated attempts to obtain official statistics, no information on accidents at the Indian and Pakistani yards has been made available. The sector suffers from a serious lack of transparency, and it is expected that many accidents go unreported. Many more workers suffer from cancers and other occupational diseases. The detention of BBC reporters and confiscation of footage from France 2 journalists by local officers from the Gujarat Maritime Board (GMB), which controls the port in Alang, reveals how the industry seeks to thwart public scrutiny of the deplorable conditions at the yards.

 

DUMPERS 2020 – Worst practices

 

Greece tops the list of country dumper in 2020. Greek owners sold 48 ships for scrapping in South Asia, most of which were beached in Bangladesh and Pakistan. 

 

“Whilst some EU Member States are increasingly cracking down on environmental crime, almost a quarter of the tonnage broken in South Asia was owned by European shipping companies. Greece in particular has systematically closed its eyes to the deplorable end-of-life track record of its shipping industry,” says Jenssen.

 

The ‘worst corporate dumper’ prize goes to South Korean company Polaris Shipping. Under pressure following serious incidents on the Stellar Daisy, which sank in the Atlantic with the loss of 22 lives in 2017, and on the Stellar Banner, which was scuttled off the coast of Brazil in June, Polaris Shipping scrapped 11 of its carriers in 2020.  All units were beached in Bangladesh and Pakistan. Four major accidents, causing the death of one worker, occurred during the dismantling of Polaris’ vessels in Chattogram. On 22 June, during an illegal night shift at Jumuna Ship Breakers yard, Abdul Halim was hit by an iron piece in the stomach on the ship Stellar Knight. On 1 July, Rohul fell and broke five ribs while dismantling the Stellar Iris at KSB Steels yard. On the same day, Mozaffor fell from the Stellar Journey at RA Shipbreaking yard. Finally, on 25 December, Md Ibrahim was killed when hit by a large iron piece while breaking the Stellar Hermes at Kabir Steel’s Khawja yard. According to shipping media Splash, middleman scrap-dealer GMS is linked to several of Polaris’ recent demolition sales.

 

Another South Korean company, Sinokor, is runner-up for worst corporate practice. Sinokor sold four vessels for scrapping in Bangladesh last year. On 24 March, two brothers, Shumon Das and Nironjon Das, died due to toxic gas inhalation while working in the engine room of the tanker West Energy at Kabir Steel’s Khawja shipbreaking yard. Sumon and Nironjon left five children behind. In the same accident, two other workers, Kawser and Habib, were also exposed to the toxic gas and fell sick.

 

Brazilian state-owned company Petrobras comes third for worst corporate practice. Three years have passed since civil society organisations and trade unions urged the Brazilian government to stop the dumping of toxic ships on South Asian beaches. Yet, oil giant Petrobras dumped nine of its old tankers in South Asia last year alone. The units were auctioned off to unscrupulous scrap-dealers, also known as cash buyers. 

 

“To avoid such deplorable practices in the future and ensure the enforcement of international legislation on hazardous waste exports, Brazilian authorities need to introduce stricter requirements for the public auctions of Petrobras’ end-of-life vessels,” says Nicola Mulinaris, Communication and Policy Officer at the NGO Shipbreaking Platform.

 

Berge Bulk, Costamare, Eurobulk, Evergreen, K-Line, Maersk and Swire & Sons are other well-known shipping companies that dumped their toxic ships on South Asian beaches in 2020.

In October, a worker lost his life during the scrapping of two Transocean’s rigs at Isiksan, a Turkish ship recycling yard included in the EU list of approved ship recycling facilities. The accident is a strong reminder of the challenges related to both containment and safety when dismantling offshore units. More than half of the oil and gas units scrapped last year ended up on the beaches of South Asia, including units owned by Noble Corporation, Tidewater and Valaris, as well as top dumper Petrobras. The mercury-laden FSO tanker JNAT was, on the other hand, banned from entering Bangladesh and India after NGOs called upon authorities to halt the import. 

 

Environmental and labour laws that regulate ship recycling exist, but they are ignored and easily circumvented by ship owners, often with the aid of 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. Almost half of the ships sold to South Asia in 2020 changed flag to one of the black-listed flags Comoros, Palau and St Kitts & Nevis just weeks before hitting the beach. At least 14 of these flag changes enabled ship owners to circumvent the EU Ship Recycling Regulation. [1]

"Whist European shipping companies own 40% of the world fleet, only 5% of end-of-life ships were registered under an EU/EFTA flag in 2020. Flags known for their poor implementation of maritime law have always been particularly popular at end-of-life. Ship owners hiding behind anonymous post box companies set up by cash buyers and backed by blacklisted flag registries is a reality that begs for the introduction and enforcement of measures that effectively hold the real beneficial owners of the vessels responsible."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

In a landmark ruling last year, a Norwegian court sentenced ship owner Georg Eide to six months unconditional imprisonment for having assisted cash buyer Wirana in an attempt to export the Tide Carrier to Pakistan for scrapping. Several other cases of illicit traffic are under investigation: unravelling the murky practices of shipbreaking, they highlight the importance of conducting due diligence when choosing business partners.

 

Due to the pandemic, the cruise shipping sector has been forced to downsize, with many ship owners, such as Carnival Corporation and Pullmantur, taking steps to reduce operating expenses, including the retirement of relatively young vessels. Carnival Corporation receives the 2020 award for best ship recycling practice. Leading by example, the American cruise shipping giant sets a standard the remaining of the cruise and shipping sector can follow.

"Carnival Corporation is honoured to receive this award. Our highest responsibility and top priorities are to be in compliance everywhere we operate in the world, to protect the environment and the health, safety and well-being of our guests, the people in the communities we visit and our shipboard and shoreside employees. This commitment holds true for every stage of the life and retirement cycle for each of our ships."
Carnival Corporation

Clean and safe solutions are already available. Less than a million Light Displacement Tonnes (LDT) were recorded recycled in EU-approved facilities in 2020, which represent a minor fraction of what these yards are able to handle. 

"We applaud companies, such as Carnival Corporation, that have a responsible policy for the recycling of their vessels ‘off the beach’. Now, we call upon policy makers to adopt effective measures, such as a return-scheme for ships, that will incentivise more owners to recycle their assets in a sustainable manner."
Nicola Mulinaris - Communication and Policy Officer - NGO Shipbreaking Platform

For the data visualization of 2020 shipbreaking records, click here. *

For the full Excel dataset of all ships dismantled worldwide in 2020, 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.

** UPDATE 10 February 2021 - Teekay Corporation informed us that five ships (i.e. Aegean Leader, Petrojarl Cidade de Rio das Ostras, Navion Bergen, Navion Hispania and Apollo Spirit) have been incorrectly attributed to the company in our 2020 shipbreaking records. The documentation provided by Teekay Corporation shows that the company is not linked to any end-of-life sale in 2020. The Platform has therefore rectified the data concerning the beneficial ownership of these vessels. Whilst the Aegean Leader results to be linked to Japanese company NYK, the other four vessels result to be linked to Altera Infrastructure . Altera Infrastructure was formerly known as Teekay Offshore, from which Teekay Corporation divested its interest on April 30 2019.

 

NOTE

 

[1] The EU Ship Recycling Regulation became applicable on 30 December 2018. According to the Regulation, EU-flagged vessels have to be recycled in one of the currently 43 approved facilities around the world included in the EU list. EU-approved ship recycling facilities must comply with high standards for environmental protection and workers’ safety. The EU List is the first of its kind; is the only list of facilities that have been independently audited; and provides an important reference point for sustainable ship recycling. Any ship owner that wants to opt for safe and clean ship recycling can simply choose one of the facilities included on the List. No beaching yard is approved by the EU. 

 

Recent audits by the European Commission in Alang and media reports continue to flag serious concerns related to pollution of the intertidal area; absence of medical facilities; breaches of labour rights and lack of capacity to safely manage several hazardous waste streams, including mercury and radioactive contaminated materials that are typically found on offshore oil and gas units. As highlighted by several NGOs and legal experts at the Center for International Environmental Law (CIEL), a possible inclusion of Indian yards on the EU List of approved ship recycling facilities would further violate international waste legislation, and be in clear contradiction with the EU's new strategic economic and environmental policy initiatives embedded in the Green Deal.

 

Alang, India - © Amit Dave - Sep 2020
Dirty scrapping of FSO at claimed 'green' Leela yard in Alang, India - © Amit Dave - Sep 2020
Chattogram, Bangladesh - © C.F. - Feb 2019
Petrobras' ship Neusa in Chattogram, Bangladesh - © NGO Shipbreaking Platform - Jan 2021

Press Release – Norwegian ship owner sentenced to prison

Posted on by Nicola Mulinaris

Georg Eide convicted for having aided cash buyer in attempt to illegally export toxic ship

 

Last Friday, the Sunnhordland District Court in Norway sentenced ship owner Georg Eide to six months unconditional imprisonment for having assisted scrap dealer Wirana in an attempt to illegally export the TIDE CARRIER (aka EIDE CARRIER and HARRIER) to Pakistan for scrapping. The Court also ordered the confiscation of criminal dividends of NOK 2 million from Eide Marine Eidendom AS.

 

After a decade in lay-up in Norway, the TIDE CARRIER was sold to one of the most well-known cash buyers, Wirana. The intent was to scrap the ship on the beach of Gadani in Pakistan. The NGO Shipbreaking Platform, together with its member organisation Bellona, tipped the police about the imminent illegal export in February 2017. The vessel was arrested upon finding onboard a “last voyage for breaking in Pakistan insurance” issued by Skuld Maritime Agency and two certificates issued on the same day by Marine Warranty Surveyor Aqualis Offshore - one for a voyage with the purpose of refurbishment work in Dubai and one for a last voyage to the scrap yards in Pakistan [1].

"Eide has been charged with complicity in violation of international waste law. The judgement acts as a stark warning that dodgy deals with cash buyers aimed at scrapping vessels on South Asian beaches, where there is no capacity and infrastructure to recycle and dispose of hazardous wastes in a safe and environmentally sound manner, are a serious crime. It also cautions that due diligence is a must for not only ship owners, but also insurers and Marine Warranty Surveyors, to avoid any business relationship with companies that have terrible track records."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

Waste exports are strictly regulated in Norwegian, European and international law. The purpose is to protect developing countries from the dumping of hazardous wastes and the harm caused to workers, surrounding communities and the environment when toxics are not treated in an environmentally sound manner. Ships contain numerous toxic materials such as asbestos, heavy metals in paints and residue oils. Last year, the Basel Convention Ban Amendment entered into global force, banning the export of hazardous wastes, including end-of-life ships, from OECD to non OECD countries. The EU transposed the Ban Amendment into EU Law in 1997.

 

Waste trafficking linked to shipbreaking is being investigated by enforcement authorities in several EU Member States. It is also being looked at from a transnational point of view via Europol and Interpol. The Norwegian District Court emphasised an increasing need to counter environmental crime. Public Prosecutor Maria Bache Dahl and the judges stressed that there was no doubt that Eide had knowledge that the ship would be scrapped in Asia, and had also provided assistance in preparing for its last voyage [2].

"The scrapping of obsolete ships is a major international environmental problem. As a large maritime nation, it is important that the Norwegian authorities contribute to the fight against this problem. "
Maria Bache Dahl - Public Prosecutor - Økokrim

Eide may appeal the verdict.

 

 

NOTES

 

[1] For more details on the case, see “The controversial case of the Harrier”.

 

[2] In 2019, separate action was taken against cash buyer Wirana who was fined NOK 7 million for having falsified papers to deceive Norwegian authorities about the ship's true destination and its seaworthiness to allow the vessel to leave Norway. Earlier this year, the public prosecutors’ office dismissed the charge and withdrew the penalty charge notice issued to MWS Aqualis Offshore AS for undisclosed reasons.

 

Press Release – Prosecutor launches investigation after Icelandic journalists shed light on illegal export of toxic ships to India

Posted on by Nicola Mulinaris

Cash buyer GMS once again under the spotlight

 

Icelandic program Kveikur released yesterday an investigation on the murky sale of two ships owned by Icelandic company Eimskip. In a documentary broadcasted by radio and television Ríkisútvarpið (RÚV), Kveikur uncovers the illegal export of the container ships GODAFOSS and LAXFOSS to the Indian beach of Alang for dirty and dangerous scrapping. The Icelandic authorities have confirmed that the case has been brought to the public prosecutor for further investigation.

 

In an interview with RÚV, and in response to Kveikur’s documentary, Iceland’s Environment Minister Guðmundur Ingi Gudbrandsson said: “First, I am shocked over what I saw. You feel sad and, at the same time, angry that a company in the West would exploit vulnerable people that have no choice but to work under such horrible conditions. Workers are at constant risk of accidents and even losing their life, and environmental issues are given zero attention. The owners of these companies must respond to whether this is, in their view, morally acceptable, and if this is in line with the environmental and social responsibility policy that they set for themselves. That is the question that I, and I believe many others, were left with.”

 

At the end of 2019, Eimskip sold, as part of its fleet renewal, the GODAFOSS and LAXFOSS, while simultaneously agreeing with the buyer to charter the ships back until the company’s new-buildings were delivered. What may have seemed like a sale for further operational use was actually a scrap deal – Eimskip’s counterpart to the sale was none other than GMS, one of the most well-known cash buyers of end-of-life ships. GMS is behind nearly half of the total tonnage that has been beached in the Indian subcontinent so far in 2020. The company has also been linked by media and civil society to several toxic trade scandals, at least two of which are currently being criminally investigated by enforcement authorities in the UK. [1]

 

Eimskip denies any involvement in the decision to sell the ships for recycling and claims having been in the dark about their final destination.

"It is hard to believe Eimskip when they claim that they were unaware of the final destination of the vessels. Companies have a duty of care and responsibility to ensure that their operations follow environmental law, also within their supply-chain. Due diligence when selecting business partners is part and parcel of that responsibility."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

The export of the two container vessels to South Asia was in clear breach of European waste laws, which prohibit the trade of hazardous waste, including end-of-life ships, from OECD countries to non-OECD countries. Both the GODAFOSS and LAXFOSS were in European waters when the decision to sell for scrap was taken. Before reaching the Indian beach of Alang, via Suez, they briefly stopped in Rotterdam and Athens respectively. At the time of the export of the ships, the NGO Shipbreaking Platform formally requested Icelandic, Dutch and Greek authorities to hold all the parties involved in the sale accountable for breaching EU waste legislation. 

 

Researchers and journalists that have recently visited the Indian shipbreaking yards, often unannounced and undercover, have documented a reality that starkly contrasts with the industry efforts to greenwash beaching. The BBC exposed the case, which sees again the involvement of cash buyer GMS, of five oil and gas units owned by Diamond Offshore. Two of the units ended up being broken in Alang under dire conditions before the remaining three were arrested in Scotland, as it was suspected that the buyers sought to illegally export them to South Asia. Dutch programme ZEMBLA brought back similar accounts of horrifying practices in Alang, revealing how workers unknowingly were exposed to highly toxic mercury fumes when torching apart an FSO owned by offshore company SBM. In 2019 alone, at least fourteen vessels were sold to beaching yards in breach of the EU Waste Shipment Regulation. The Icelandic case adds itself to several ongoing criminal investigations.

 

 

NOTE

 

[1] See North Sea Producer case and Diamond Offshore case. 

 

Press Release – NGOs urge Bangladesh authorities to halt the import of a highly toxic offshore unit that illegally departed from Indonesia

Posted on by admin_ec

The Floating Storage and Offloading (FSO) tanker J. NAT is currently being towed towards the infamous shipbreaking beach of Chattogram. The vessel, formerly known as JESSLYN NATUNA, operated in the Natuna gas field and was owned by Indonesian company Global Niaga Bersama PT. It was recently sold to cash buyer SOMAP International, who re-named it to J. NAT and re-flagged it to Palau. SOMAP is a company specialised in trading end-of-life vessels to the beaching yards.

 

The FSO J. NAT left Indonesian waters on 18 April even though local activists warned Indonesian authorities about the toxicity of the vessel. Official documents indicate that the tanker has more than 1500 tons of hazardous waste from the oil extraction process onboard, including 1000 tons of slop oil, 500 tons of oily water and 60 tons of sludge oil. Lab results on a sludge sample shared with the Platform reveal mercury levels of 395mg/kg. The J. NAT likely also contains high amounts of mercury in its structures, as well as in ballast waters. 

 

The NGO Shipbreaking Platform, Basel Action Network (BAN), European Environmental Bureau (EEB), IPEN, Nexus3 Foundation and Zero Mercury Working Group have now warned Bangladesh of the breach of international waste laws [1], and urged authorities to halt the import of the contaminated ship. Ignoring illegal acts risks exposing the workers to severe harm and polluting the environment of Bangladesh. 

 

"In addition to the hazardous materials typically found on conventional ships, oil and gas structures, such as the J. NAT, are often contaminated by mercury. Mercury is a naturally occurring element present in virtually all oil and gas fields. Concentrations are especially high in the South American and East Asian regions."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

Given the likely high concentrations of mercury in the steel hull of the FSO J. NAT and the blow torch method used to cut vessels, there is a high risk of inhalation of mercury vapour. Mercury is an extremely toxic metal. Exposure to mercury, even at low levels, has been linked to central nervous system damage, kidney and liver impairment, reproductive and developmental disorders, defects in foetuses and learning deficits. 

 

In a recent court judgment on the illegal import of another oil and gas unit – Maersk’s FPSO NORTH SEA PRODUCER – the Bangladesh Supreme Court denounced the fraudulent documents claiming that the vessel was toxic-free when it in fact was contaminated by radioactive substances. The Court called for full transparency on the hazardous materials onboard end-of-life vessels imported to Bangladesh.

"In light of the recent judgment on the North Sea Producer, there is no scope to give any authorization for import, beaching, and breaking of the J. NAT. It is public knowledge that Bangladesh will not be able to deal with the hazardous waste flow downstream. The vessel will simply flood our shores with toxic substances and expose our workers to deadly risks."
Syeda Rizwana Hasan - Supreme Court lawyer and Director of Bangladesh Environmental Lawyers Association

The Platform has documented drill ships, floating platforms, jack-up rigs and FPSOs/FSOs scrapped in recent years. Many were beached in South Asia, including units owned by Diamond Offshore, Maersk, Odebrecht, SAIPEM, SBM Offshore and Transocean. The J. NAT case resembles the recent export from Indonesia to the Indian beach of Alang of SBM’s mercury-laden tanker YETAGUN, which was investigated by Dutch media Zembla.  

"With many units to be decommissioned in the next few years, it is high time that the oil and gas industry collectively seeks sustainable solutions for the recycling of its floating units. All actors involved in the oil and gas supply chain, directly or indirectly, have the responsibility to not cause harm to workers and the environment in developing countries."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

NOTE

 

[1] Bangladesh and Indonesia are both signatories to the Basel Convention on the Control of Transboundary Movements of Hazardous Waste and their Disposal. Under this Convention, the trade in mercury and several other hazardous wastes that are likely contained within the structure of the FSO J. NAT is strictly controlled. The import of the vessel requires that there is prior informed consent (PIC) between Indonesian and Bangladeshi authorities and that the declarations of hazardous materials left on board must reflect actual conditions. Moreover, the Convention requires that no export be made if there is reason to believe that the recycling or waste management facilities employed for the materials will not constitute environmentally sound management under the Convention. The shipbreaking yards that operate on the tidal beach of Chattogram are well-known for their dangerous and polluting practices. 

 

Indonesia is also a party to the Minamata Convention, while Bangladesh has not ratified the treaty. Although the oil and gas sector is exempted from the international agreement in terms of their emissions management, countries must identify the potential sources of mercury emissions and releases within their own territory. Measures should be taken when high mercury sources have been identified. 

 

 

 

UPDATE: This post was updated on 1 May 2020 to specify the levels of mercury contamination in the sludge of the FSO J. NAT according to lab results shared with the Platform.

 

Press Release – BBC exposes dirty and dangerous scrapping of oil and gas units in India

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Diamond Offshore and cash buyer GMS under the spotlight

 

A BBC Disclosure production released this week reveals the harm caused by shipbreaking activities in Alang, India, as well local officials’ and leading oil and gas companies’ efforts to cover up their unlawful practices. The investigation, conducted by journalists Mark Daly and Chris Foote, focuses on the attempt to illegally export a trio of floating rigs full of asbestos and mercury from the Scottish Cromarty Firth.

 

The BBC Disclosure documentary and longread trace five rigs that were sold in 2017 by oil and gas company Diamond Offshore to cash buyer GMS, one of the leading scrap dealers for end-of-life vessels. Two of the units — the Ocean Alliance and the Ocean Baroness — left the Gulf of Mexico and ended up on the shipbreaking beach of Alang, India. The other three — the Ocean Nomad, the Ocean Vanguard and the Ocean Princess — are still detained in Cromarty Firth by the Scottish Environment Protection Agency (SEPA). The NGO Shipbreaking Platform alerted SEPA in January 2018, only few days before the rigs were due to be removed from the Cromarty Firth, that the units were likely to end up on a South Asian beach for dirty and dangerous scrapping in breach of European and international environmental law.

"Our preference is that waste stays in Scotland and gets dealt with. If it’s going to move somewhere else, we need to make sure that it’s going to the right place, where it can be handled properly. If someone wants to do the wrong thing, it is our job to stop them."
Terry A’Hearn - Chief Executive - SEPA

Workers’ interviews and undercover footage obtained by BBC at the Indian shipbreaking yard where the Ocean Alliance was taken apart highlight breaches of labor rights, disregard for even the most basic health and safety standards, and extremely polluting practices. 

 

"Companies sell their end-of-life tonnage to the beaching yards as that is where they can make the highest profit. But these are profits made on the back of exploited workers and fragile ecosystems. Alang is furthermore a toxic hotspot, and, without a proper clean-up, the pollution caused by more than three decades of reckless shipbreaking will continue to harm the local environment and the communities that depend upon it for many years to come."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

90% of the world’s end-of-life tonnage is currently scrapped using the low-cost method of beaching. Oil and gas units are of particular concern due to the complexity of the breaking operations and their contamination by highly toxic substances such as mercury and radioactive materials. So far, the only structure which operated in the North Sea and which has been traced to a South Asian beach is the infamous FPSO North Sea Producer. It was owned by a Maersk-Odebrecht joint venture and was also sold to cash buyer GMS before it illegally departed the UK to Chittagong, Bangladesh, after having been deployed at the North Sea McCulloch field.  

 

"Many more offshore assets will need to be scrapped in the coming years. Companies that have owned and operated these units are responsible for ensuring that they are recycled without harming workers and the environment. For any unit having operated in the North Sea, there are more than enough options in Europe."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

The BBC Disclosure report reveals how companies involved, as well as Indian local authorities, seek to thwart public scrutiny of the deplorable conditions in Alang. Also other journalists that have visited the Indian shipbreaking yards, often unannounced and undercover, have documented a reality that starkly contrasts with the industry efforts to greenwash beaching. In 2016, DanWatch revealed dire conditions at a yard Maersk and ClassNK had approved as safe and environmentally sound. More recently, French TV and Dutch programme ZEMBLA brought back similar accounts of the shipbreaking activities in Alang. The Dutch journalists revealed how workers unknowingly were exposed to highly toxic mercury fumes when torching apart an FSO owned by offshore company SBM.

 

Press Release – Platform publishes list of ships dismantled worldwide in 2019

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Most shipping companies continue to opt for the highest price at the worst scrapping yards

 

According to new data released today by the NGO Shipbreaking Platform, 674 ocean-going commercial ships and offshore units were sold to the scrap yards in 2019. Of these vessels, 469 large tankers, bulkers, floating platforms, cargo- and passenger ships were broken down on only three beaches in Bangladesh, India and Pakistan, amounting to near 90% of the gross tonnage dismantled globally.

 

"Bangladesh remains the favoured dumping ground for end-of-life ships laden with toxics. There is wide-spread knowledge of the irreparable damage caused by dirty and dangerous practices on tidal mudflats, yet profit is the only decisive factor for most ship owners when selling their vessels for breaking."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

Last year, at least 26 workers lost their lives when breaking apart the global fleet. The Platform documented accidents that killed 24 workers on the beach of Chattogram (formerly known as Chittagong), making 2019 the worst year for Bangladeshi yards in terms of fatalities since 2010. At least another 34 workers were severely injured. Whilst the total death toll in Indian yards is unknown, local sources and media confirmed at least two deaths at shipbreaking yards that claim to be operating safely, but have failed to be included in the EU list of approved ship recycling facilities [1].

 

DUMPERS 2019 – Worst practices

 

UNITED ARAB EMIRATES and GREECE top the list of country dumpers in 2019. UAE owners were responsible for the highest absolute number of ships sold to South Asian shipbreaking yards in 2019: 45 ships in total. Greek owners closely followed with 40 beached vessels.

 

The ‘worst corporate dumper’ prize goes to the Taiwanese container shipping line Evergreen. In the last years, the company has been under the spotlight for its damaging shipbreaking practices. In January 2018, the Norwegian Central Bank announced its decision to divest from Evergreen due to the ship owner’s repeated sale of vessels for dirty and dangerous breaking on the beach of Chattogram. Since then, the company has clearly not changed its policy. Eleven of Evergreen’s vessels ended up in South Asia in 2019. On 23 July, cutter man Shahidul lost his life while working at Kabir Steel’s Khawja shipbreaking yard in Bangladesh. Shahidul was dismantling Evergreen’s EVER UNION when he fell from a great height. He died on the spot.

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Dry bulk shipping company Berge Bulk is runner-up for worst corporate practice. Four ships owned by the Bermuda-based ship owner ended up in Bangladesh for dirty and dangerous breaking. Berge Bulk’s scrapping practices should prompt the Lloyd’s List Asia Awards to withdraw the prize for “Excellence in Environmental Management” the company recently received for its commitment to environmental conservation. Indeed, there is nothing laudable about putting workers lives at serious risk and polluting sensitive coastal environments.

 

Danish container shipping giant Maersk scrapped four vessels on the Indian beaches last year. The company did not hesitate to leave the Danish shipping registry in order to circumvent the new EU laws requiring the use of EU-approved recycling facilities, and at least two of the ships even left EU waters in breach of an international and European ban on the export of hazardous waste to developing countries. In November, Bangladesh Courts condemned the illegal breaking of Maersk’s FPSO North Sea Producer which had been sold to cash buyer GMS and fraudulently exported from the UK in 2016. Criminal investigations are underway in the UK.

 

Other well-known shipping companies that in 2019 dumped their toxic ships on South Asian beaches include: Costamare, CMA CGM, Diamond Offshore, ENSCO, MOL, MSC, NYK Line, Tidewater and Vale.

In India, many yards now boast having upgraded their beaching facilities to comply with the requirements set by the International Maritime Organisation’s Hong Kong Convention. Recent inspection visits by the European Commission in Alang and media reports, however, flag serious concerns related to pollution of the intertidal area; absence of medical facilities; breaches of labour rights and lack of capacity to safely manage a number of hazardous waste streams, including mercury and radioactive contaminated materials that are typically found on offshore oil & gas units. No facility located in South Asia meets the safety and environmental requirements for EU approval.

 

All ships sold to Chattogram, Alang and Gadani pass via the hands of scrap-dealers, better known as cash buyers. These pay the highest price for end-of-life vessels and are inherently linked to the beaching yards. Cash buyers typically re-name, re-register and re-flag the vessels on their last voyage. Black-listed flags, such as Palau, Comoros and St Kitts & Nevis, were particularly popular in 2019: almost half of the ships sold to South Asia changed flag to one of these registries just weeks before hitting the beach. None were beached under an EU flag, despite many vessels having been sold by a European shipping company.

"Policy makers need to adopt effective measures to divert ships towards the sites that have been approved by the EU. The fact that old ships are registered under flags known for the poor implementation of international maritime law sheds serious doubt over the effectiveness of legislation based on flag state jurisdiction only, including the EU Ship Recycling Regulation."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

Today banks, pension funds and other financial institutions are actively taking a closer look at how they might contribute to a shift towards better ship recycling practices off the beach, taking into account social and environmental criteria, not just financial returns, when selecting asset values or clients [2]. Police and environmental authorities are also increasingly monitoring the movements of end-of-life vessels. Following the Seatrade judgement in the Netherlands where, for the first time, a ship owner was held criminally liable for having intended to sell four end-of-life ships to Indian beaching yards, several other cases of illegal traffic are under investigation. [3] Aiding and abiding environmental crime is equally punishable: insurers, brokers and maritime warranty surveyors could therefore also be held liable. By unravelling the murky practices of shipbreaking, these cases highlight the importance of conducting due diligence when choosing business partners.

"Clean and safe solutions are already available. We applaud companies, such as Dutch Van Oord, that have had a responsible ship recycling policy ‘off the beach’ for many years. Whilst other ship owners lament over the lack of capacity to recycle sustainably, only 31 vessels were recorded recycled in EU-approved facilities, which represent a minor fraction of what these yards are able to handle."
Nicola Mulinaris - Communication and Policy Officer - NGO Shipbreaking Platform

For the data visualization of 2019 shipbreaking records, click here. *

For the full Excel dataset of all ships dismantled worldwide in 2019, 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.

 

NOTES

 

[1] The EU Ship Recycling Regulation became applicable on 1 January 2019. According to the Regulation, EU-flagged vessels have to be recycled in one of the currently 41 approved facilities around the world included in the EU list. EU-approved ship recycling facilities must comply with high standards for environmental protection and workers’ safety. The EU list is the first of its kind; is the only list of facilities that have been independently audited; and provides an important reference point for sustainable ship recycling. Any ship owner that wants to opt for safe and clean ship recycling can simply choose one of the 41 facilities that are now included on the List.

 

[2] In early 2018, Scandinavian pension funds KLP and GPFG were the first to divest from four shipping companies, including containership company Evergreen, due to their beaching practices.

 

[3] In Scotland, Diamond Offshore and cash buyer GMS are still under investigation for having attempted to illegally export three heavily contaminated platforms that had operated in the North Sea and were cold-stacked in Cromarty Firth. The platforms have been detained in Scotland since January 2018.

 

Press Release – Clemenceau’s sister ship heading for the scrapyard

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France must act responsibly

 

The French Courts stopped the scrapping of the asbestos-laden aircraft carrier Clemenceau on the beach of Alang, India [1]. Fifteen years later, France is faced with a second toxic headache. The Clemenceau’s sister ship São Paulo (ex Foch) will soon be dismantled and the French government must approve of the dismantling destination.

 

The vessel was sold by the French Navy to Brazil in 2000, where it became the new flagship of the Brazilian Navy. After countless serviceability issues, which impeded the ship’s operation for more than three months at a time without the need for costly maintenance, it was formally decommissioned; its auctioning began last year in Rio de Janeiro.  So far, both EU-approved ship recycling facilities and yards located on the infamous beach of Alang have submitted documentation to participate in the bidding process.

 

The São Paulo, as the Clemenceau, contains large amounts of hazardous substances within its structure. It is estimated that onboard the vessel there are approximately 900 tons of asbestos and asbestos-containing materials, hundreds of tons of PCB-containing materials and large quantities of heavy metals. The NGO Shipbreaking Platform, BAN, BAN Asbestos France, IBAS and Brazilian ABREA have already alerted both Brazilian and French authorities about the legal, environmental and health risks linked to breaking toxic ships on the beaches of South Asia.

"The large amounts of asbestos still onboard the São Paulo need to be handled and disposed of without exposing workers and surrounding communities to the risk of cancer. The contractual clause in the sale of the Foch to Brazil gives France the last say in where the aircraft carrier can be dismantled. French authorities must direct the Clemenceau’s sister ship to an EU-approved facility – anything else would be a scandal."
Annie Thebaud-Mony - Professor - Ban Asbestos France
São Paulo aircraft carrier in Rio de Janeiro, 2019

On the ship-breaking beaches of South Asia it is impossible to contain pollutants, including heavy metals and oil residues, as there are no impermeable structures and flooring in the primary cutting zone. The lack of adequate personal protective equipment at the beaching yards, as well as the lack of adequate health facilities, is of grave concern and has been highlighted in recent reports.

 

NGOs call upon Brazilian and French authorities to make sure the São Paulo does not end up on a South Asian beach and is safely recycled in an EU-listed yard or converted to other use.

 

NOTE

 

[1] On 31 December 2005, the Clemenceau left France despite fierce protests about improper disposal and a lack of facilities for the management of toxic waste on the beaches on South Asia. After having been boarded by activists, held by Egyptian authorities, been blocked from entering Indian waters by the Supreme Court of India, the warship was ordered to return to France by French President Jacques Chirac. It ended up been dismantled in a yard near Hartlepool, UK.

 

 

 

Press Release – NGOs win FPSO North Sea Producer case

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Bangladesh Court denounces illegalities and lack of transparency in shipbreaking sector

 

On 14 November the High Court Division of the Supreme Court of Bangladesh declared the import, beaching and breaking of the infamous FPSO North Sea Producer illegal. The judgment was issued in a Public Interest Litigation (PIL) filed by NGO Shipbreaking Platform member organisation Bangladesh Environmental Lawyers Association (BELA). The Court further noted with dismay the incessant violations of national and international laws by the shipbreaking industry, and passed several directions upon the government to regulate the sector in line with earlier rulings. 

 

Already in August 2017, the Bangladesh Court had issued an injunction on the ongoing breaking of the North Sea Producer based on the detection of radiation levels higher than permitted. It has now directed national agencies to monitor the breaking of what is left of the FPSO without any involvement of Janata Steel, the yard that had beached the vessel in 2016. The Department of Environment has also been directed to claim compensation from the yard for having violated national environmental rules.    

"The judgment is important in that it has expressly called the import, beaching and breaking permits illegal, and for the first time a breaker has been put off the breaking operation and the government has been given the steering. It is even more important because it has required the government to regulate the dubious roles of the cash buyers and restrict import from grey- and black-listed flag registries. This will surely make it difficult for the unscrupulous players to treat Bangladesh as a dumping ground."
Syeda Rizwana Hasan - Supreme Court lawyer and Director of Bangladesh Environmental Lawyers Association

Noting the plethora of illegalities and the lack of transparency in the sector, the Court directed authorities to i) subject cash buyers and agents to stricter scrutiny, including a detailed recording of their particulars, and to hold them accountable to the strictest sanctions; ii) regulate the import of vessels registered under “last voyage” grey- or black-listed flags which are particularly popular with cash buyers, including Comoros, Palau and St. Kits and Nevis, and; iii) ensure that no vessel is imported without proper verifiable pre-cleaning certificates and declarations of in-built hazardous wastes, and/or by yards that do not fully comply with the requirements for obtaining an Environmental Clearance.

 

Whilst the recent ruling on the illegal import of the North Sea Producer stresses the systemic illegalities of the entire ship breaking sector, and also highlights the deficiencies of local agencies responsible for the enforcement of environmental and labour laws, the illegal export of the vessel from the UK is still being investigated by UK environmental agency DEFRA. After winning the case on the illegal import and beaching of the North Sea Producer, owned by Danish A.P. Moeller Maersk and Brazilian Odebrecht, NGOs now urge the UK to hold the ship owners and cash buyer GMS accountable for the illegal export of the toxic FPSO. As previously reported, the North Sea Producer was allowed to leave the UK in 2016 based on claims that it would be further operationally used. 

"Providing fraudulent documentation in order to circumvent existing waste export bans is a criminal offence in Europe and internationally. Maersk and Odebrecht were well acquainted with cash buyer GMS’ notorious trafficking of waste ships. They were also well aware of the illegality of selling the vessel for scrapping in South Asia. This is not a case of poor human rights due diligence, but one where companies collude to earn big bucks on the back of people and the environment. We demand that authorities in the UK follow suit and establish the responsibility of all parties involved."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform
The North Sea Producer beached in Chattogram – © NGO Shipbreaking Platform