Platform News – Worker killed in yard breaking German-owned container ship “Viktoria Wulff”

On 4 December, worker Shah Jahan was killed on the spot at Arefin shipbreaking yard in Chittagong, Bangladesh, where German container ship “Viktoria Wulff” (IMO 9252101) is currently being dismantled on the beach. The 35-year old man, who was made to work without any safety measures, was struck on the head by a heavy iron piece.

 

German ship owner Wulff went bankrupt in August and the insolvency administrator is currently selling off the company’s remaining vessels. The “Viktoria Wulff” became the youngest container ship to be sold for demolition at an age of only 10 years without a previous accident.

"The story of the ‘Viktoria Wulff’ is characteristic for the failed business practices of German KG ship owners as well as ship funds. Nearly 600 ships have been sold due to insolvencies and financial problems since 2008, many of which ended up on the South Asian beaches. The bill for the ship owners’ and investors’ greed for profit is paid by workers and the environment in destinations like Bangladesh, where ships end up without any consideration of the human and environmental costs. It is a scandal that German liquidators, who are appointed by the courts, sell end-of-life ships to substandard breaking yards risking peoples’ lives through deals that are in clear breach of international and even domestic Bangladeshi law just to sort out the books for German ship owners."
Patrizia Heidegger- Executive Director - NGO Shipbreaking Platform

This is not the first case of fatal accidents in the shipbreaking yards of South Asia that the Platform was able to link to bankruptcies of German ship owners. Last year, the Platform, together with broadcaster NDR, revealed the case of the “King Justus” which was sold after the insolvency of König & Cie. A worker was killed breaking the ship on the beaches of Alang, India. At the time, the Environment Minister of North German state Lower Saxony also criticised NordLB, a bank with a major shipping portfolio overseen by the State Government, for its involvement in the financing of the ship.

 

In Bangladesh, fatal accidents in the shipbreaking industry remain very frequent, a situation that is widely known – but largely ignored – by the shipping industry, insolvency administrators selling off unwanted ships, as well as by the brokers and cash buyers setting up the end-of-life deals. German owners have had at least 32 old ships ramped up on the beaches of Bangladesh this year. With 83 end-of-life vessels sold to beaching yards in South Asia in 2016, German ship owners top the list of global dumpers together with Greek shipping lines. Several end-of-life sales were in direct breach of the European Waste Shipment Regulation that bans the export of hazardous waste to developing countries. The “Viktoria Wulff” was most probably traded through an anonymous cash buyer using the end-of-life flag St Kitts and Nevis before it was beached in Chittagong.

"Only in 2016, at least 19 shipbreaking workers were killed and another 11 severely injured in the Bangladesh yards. The accident rate remains shockingly high and is not coming down, despite the promises of the yard owners and cash buyers. The shipbreaking yards have to be moved away from the muddy beaches to clean and safe ship recycling facilities using quays and docks where cranes can be operated to safely move cut steel sections. Otherwise, the death count of beaching will not come to a halt."
Patrizia Heidegger- Executive Director - NGO Shipbreaking Platform

In an attempt to hide the accident, the yard management kept the body of Shah Jahan inside the premises, but fellow workers and locals rushed to the site and started demonstrating. The body was consequently sent to the morgue of the Chittagong Medical College Hospital. The following day, the worker was quickly buried without a post mortem. Platform member organisations in Bangladesh attended the funeral and now seek to support the victim’s relatives. The family and the yard owners have settled for a one-off payment and a monthly allowance to help them cover their living costs. However, money will not be able to replace Shah Jahan who leaves behind a wife and a young child.

 

Platform News – Maersk incited business partner to opt for worst breaking practices for 14 ships

A third report by the investigative journalists of Danwatch, “Maersk and the shadowy deals”, reveals that the Danish container ship giant has incentivised the sale of 14 ships to substandard shipbreaking yards on the beaches of Bangladesh and India in 2013/2014. At the same time, Maersk prided itself with a progressive ship recycling policy and its cooperation with state-of-the-art yards in China. The report in Danish was released last week and has created a media uproar in Denmark. The story has been widely featured on TV2, daily newspaper Politiken and other major outlets. It triggered critical reactions from a wide range of stakeholders and forced Maersk to admit that such shady deals should never have been made.

 

Late in 2013, Maersk sought early termination of a charter party for 14 ships due to the vessels’ poor rentability and the general overcapacity in the container ship market. Maersk had previously been the owner of the vessels before they sold them to a finance construct in Germany, MPC Flottenfonds III, in 2009. Maersk then continued operating them based on a long-term charter. In 2014, the Platform investigated that the 14 vessels operated by Maersk had ended up in some of the worst shipbreaking yards in Bangladesh and India, and contacted Jacob Sterling, then Head of Sustainability at Maersk. He said: “We encourage other ship owners to recycle their ships in a responsible way, including those that we charter ships from.” In an article, Sterling also stated: “NGOs argue that beaching must end now. We agree”.

The Cashel/Nedlloyd Asia beached in Bangladesh - © NGO Shipbreaking Platform 2014

Sterling’s response regarding the chartered ships was a lie: a quick look into Maersk’s addendum to the charter contract is enough to understand that. First, Maersk explicitly asked the German owner through a clause in the contract to ensure the immediate demolition of the vessels in order to get them off the market. Second, Maersk demanded in another clause that the vessels had to be sold for the highest price available on the scrap market – without any consideration of environmental or social standards. With the latter clause, Maersk put pressure on the ship fund to sell the 14 vessels for a minimum price of 447 USD per ton, a price that corresponded at the time to the prices offered in South Asian beaching yards. No facility operating under safe and sound conditions would have been able to pay such a high price. Moreover, the contract between Maersk and MPC states that if MPC were to sell the vessels for a lower price, Maersk would have to pay the difference. And, crucially, if MPC managed to sell for a higher price, it was under an obligation to pay Maersk the difference in profit earned. The MPC case is likely not an isolated one. The Platform found that Maersk had sold another three older ships to Greek owner Danaos and immediately chartered them back on a long-term basis. Also these three vessels ended up in beaching yards.

"In 2014, we believed that Maersk was an industry leader with regards to sustainable ship recycling practices. In Maersk’s CSR reports, we could read about their much publicised cooperation with Chinese ship recycling yards, we were shown futuristic videos on ‘total vessel recycling’ and the Head of Sustainability made strong ‘off the beach’ statements. Getting hold of the charter contract opened our eyes to the reality: Maersk actively incentivised business partners to sell to the highest bidder, inevitably offering the lowest standards. Maersk was fully aware that these ships would be broken in some of the worst yards in Bangladesh and India and even had a direct financial interest in that by earning an extra profit."
Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform

After Maersk’s business tactics were revealed in the Danish press, the shipping line has received strong criticism for its unsustainable shipbreaking practices from Danish Parliamentarians, leading Danish environmental organisations, and its own investors.

"Maersk had no other choice but to apologise publicly for both their shady deals and the illegal export of their floating storage and production tanker, the North Sea Producer, from the UK to Bangladesh. Maersk admitted to the media that they should not have made such deals. However, apologies for the worst practices now seem to be the strategy to make the current breaking practice in Alang, India, look like a good solution."
Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform

Danwatch’s investigations at Maersk’s Shree Ram yard in Alang have shown severe shortcomings related to fundamental labour rights, environmental safeguards and basic health and safety standards. Maersk’s support of the beaching yards in Alang stalls any development in India to move ship recycling to modern industrial platforms. Such a transition was already supported by the Government of Gujarat and investors in the 1990s when the Pipavav dry dock was built in order to bring the Indian ship recycling industry to an acceptable level. However, the shipping industry’s profits on the beaches of Alang have consolidated the beaching yards’ monopoly in India, while innovative new businesses from India have been stifled.

"We and other key stakeholders maintain: the future of shipbreaking is not on the beaches of South Asia, but in modern ship recycling facilities. Maersk should lead the way in supporting innovative companies, rather than scotching development in India by supporting a method which is banned in Europe. While India’s space programme is launching satellites for the US and Canada, the shipping industry wants us to believe that Indian companies can dismantle ships only on a beach?"
Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform

 

NOTES

 

[1] The Platform has sent a letter to the UK Environment Minister on 25 October.

 

[2] In addition to the Danwatch report, see also coverage in Danish TV2 and Politiken.

 

[3] The North Sea Producer was used as an oil and gas floating production storage and offloading (FPSO) vessel in the North Sea at the MacCulloch oil field, 250km north-east of Aberdeen, for ConocoPhillips. When the MacCulloch field was closed, the FPSO was brought to Teesport in Middleborough.

 

[4] Conquistador Shipping Corporation is domiciled at P.O. Box 583, Morton House - Government
Road Charlestown, Nevis. Offshore leaks documentation clearly indicated this is a typical post box company address. See also this link. In order to disguise their involvement in the sale of end-of-life vessels, cash buyers usually use anonymous post box companies, often located in the state whose flag of convenience is used for the last voyage. Similarly, the contracts with the local shipbreaking yard, or papers for the authorities, are signed by local agents so that the name and signature of the cash buyer does not appear on any document.

 

Platform News – Maersk involved in illegal toxic waste trafficking

Contaminated North Sea oil production and storage tanker ends up on the beach in Bangladesh

 

The Maersk-owned floating oil production and storage tanker, North Sea Producer, left the UK in May 2016 and was directly towed to Bangladesh, where it arrived on 14 August 2016. Two days later, the North Sea Producer was beached at the Janata Steel shipbreaking yard in Chittagong. The vessel is likely to contain large amounts of highly contaminated residues including NORM (natural occurring radioactive material). It is currently being torn apart on a tidal beach, sadly known for the human rights abuses and environmental pollution caused by substandard shipbreaking. The tanker’s export from the UK for demolition in Bangladesh was illegal under the European Waste Shipment Regulation. The NGO Shipbreaking Platform calls on the UK Government to hold the Maersk-owned North Sea Production Company responsible for illegal trafficking in hazardous waste [1].

© TV2

The case has recently been high up on the agenda of Danish media [2], prompting both policy makers and investors of Maersk, including Nordea, and pension funds PFA and KLP, to react. Whilst Maersk claims that they sold the vessel for further operational use, they have so far been unwilling to reveal which company from the oil and gas sector bought the vessel and claimed to be able to operate it. Taking the current market conditions into account, it was highly unlikely that Maersk was able to find a new owner for the North Sea Producer within the oil and gas sector.

 

The North Sea Producer was owned and operated by UK-based North Sea Production Company, a joint venture between Danish Maersk and Brazilian oil & gas company Odebrecht, with 50% ownership each. Having operated in the North Sea as an FPSO [3], the vessel is likely to contain large amounts of residues that are contaminated by NORM and sulphur in addition to the various other hazardous materials in its structure and tanks. The Bangladesh shipbreaking yards are not equipped with any infrastructure that could safely remove and dispose of such toxic wastes. The North Sea Producer was allowed into Bangladesh based on a fake certificate stating that the tanker did not contain any hazardous materials. The import of end-of-life ships containing hazardous waste into Bangladesh is banned, but circumvented with such false documents.

"After the recent revelations on Maersk’s shipbreaking practices in India, we also had to learn that Maersk shamefully exposes workers in Bangladesh to enormous risks. If Maersk sells a contaminated old oil tanker to an anonymous post box company in the Caribbean under the pretense of further operation use, this is at best a total failure of due diligence, if not punishable negligence. We expect the UK authorities to hold all involved companies responsible for illegal hazardous waste trafficking."
Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform

In late April, local newspapers wrote about the sale of the North Sea Producer. The North Sea Production Company was quoted as still being the owner and soon to strike a deal of which the details were confidential. Later, the newspapers stated to have been informed that the FPSO would be reused at the Tin Can Island Port in Nigeria. However, when the ship left Teesport, UK, on 17 May it sailed straight to Bangladesh, with only a few fuel stops for the tug boat Terasea Hawk on its way. Its first stop was in Namibia – way beyond the stated destination in Nigeria.

"It is highly likely that the North Sea Production Company sold the ship directly to cash buyers GMS (Global Marketing Systems), via an anonymous post box company in St. Kitts and Nevis. GMS is one of the world's largest companies that specialises in selling end-of-life tonnage to the beaching yards in South Asia. While GMS has recently been extremely busy in polishing its image with claims of ‘green ship recycling’, the company’s track record – and obvious continued practice – tells another story. GMS continues to strike deals with some of the worst shipbreaking yards in the world, including those in Bangladesh where hazardous waste management capacity is completely absent, where illegal child labour persists, and where workers are killed or maimed in accidents that could have been avoided."
Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform

A Saint Kitts and Nevis-based postbox company, Conquistador Shipping Corporation, [3] became the new registered owner of the ship during its last voyage. Contracts for the vessel with Janata Steel shipbreaking yard were signed with the help of a Chittagong-based agent. It is likely that GMS is behind Conquistador Shipping Corporation which is used for last voyage ship registration. GMS has been involved in similar cases before, such as in 2012 when they used anonymous post box companies in Panama and the end-of-life flag of Belize to illegally export two French ferries, SeaFrance’s Cézanne and Renoir, from France to India.

 

In the coming years a high number of vessels, including semi-submersible platforms, used by the oil and gas sector operating in the North Sea will be decommissioned. Some of these structures have already ended up on the South Asian beaches for breaking under conditions that are both dangerous and polluting.

"We are asking governments to effectively prevent any future illegal waste trafficking as we have seen with the case of the North Sea Producer. The large number of vessels and structures used in the North Sea that will need to be decommissioned in the coming years should prompt public strategies for the creation of jobs in the EU that promise the environmentally sound recovery of valuable resources."
Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform

 

NOTES

 

[1] The Platform has sent a letter to the UK Environment Minister on 25 October.

 

[2] In addition to the Danwatch report, see also coverage in Danish TV2 and Politiken.

 

[3] The North Sea Producer was used as an oil and gas floating production storage and offloading (FPSO) vessel in the North Sea at the MacCulloch oil field, 250km north-east of Aberdeen, for ConocoPhillips. When the MacCulloch field was closed, the FPSO was brought to Teesport in Middleborough.

 

[4] Conquistador Shipping Corporation is domiciled at P.O. Box 583, Morton House - Government
Road Charlestown, Nevis. Offshore leaks documentation clearly indicated this is a typical post box company address. See also this link. In order to disguise their involvement in the sale of end-of-life vessels, cash buyers usually use anonymous post box companies, often located in the state whose flag of convenience is used for the last voyage. Similarly, the contracts with the local shipbreaking yard, or papers for the authorities, are signed by local agents so that the name and signature of the cash buyer does not appear on any document.

 

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

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

 

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

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

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

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

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

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

 

NOTES

 

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

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

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

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

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

 

 

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

Conditions at beaching yard strongly criticised

 

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

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

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

 

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

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

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

 

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

 

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

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

 

NOTES

 

[1] See Platform press release.

 

 

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

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

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

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

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

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

 

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

 

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

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

 

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

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

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

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

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

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

 

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

 

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

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

 

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

 

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

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

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

 

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

Platform News – Surge of fatal accidents in Chittagong

10 shipbreaking workers killed or severely injured in one month only

 

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

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

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

 

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

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

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

 

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

 

© BILS – Trade unionists visit grave of killed worker

 

 

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

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

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

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

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

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

 

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

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

 

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

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

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

 

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

 

 

NOTES

 

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

 

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

 

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