Platform publishes South Asia Quarterly Update #24

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

 

Our annual list of ships scrapped worldwide will be released in a couple of weeks.

 

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

Platform publishes South Asia Quarterly Update #23

There were a total of 170 ships broken in the third quarter of 2020. Of these, 110 ships were sold to the beaches of South Asia, where, despite several yards being closed due to the Covid-19 pandemic, shipbreaking activities continued to put workers’ lives at risk. Between July and September, at least four workers were severely injured and one worker lost his life in Bangladesh. 

 

 

On July 1, Rohul (47 years old) suffered an accident at KSB Steels shipbreaking yard. He fell and broke five ribs while dismantling the ship STELLAR IRIS (IMO 9083093), owned by South Korean company Polaris Shipping. On the same day, Mozaffor (42 years old) fell down while dismantling another Polaris’ vessel, the STELLAR JOURNEY (IMO 9050230), at RA Shipbreaking yard. Mozaffor was transferred to Dhaka Hospital as the medical assistance was inadequate in Chattogram.

 

On July 20, Rashidul Islam (45 years old) died while dismantling an unidentified vessel at N.R. Shipbreaking yard. Rashidul was fatally hit by a falling object.

 

On July 21, Faruk (24 years old) got injured at Arefin Shipbreaking yard. He was breaking the Japanese-owned vessel INNOVATOR (IMO 8508905) when an iron plate hit his head.

 

On August 27, Mokbul (40 years old) suffered an accident at T.R. Shipbreakers yard, owned by Didarul Alam, a member of the Bangladeshi Parliament. He was hit by an iron plate in his back. Mokbul did not receive any treatment or compensation from the yard owner in order to satisfy his livelihood needs.

 

In the third quarter of 2020, Greek ship owners sold the most ships to South Asian yards, closely followed by Japanese, Russian and South Korean owners. South Korean company Polaris Shipping sold another two vessels to Pakistan. The ship owner, which hit the headlines in June for the scuttling of the ore carrier STELLAR BANNER off the coast of Brazil, has sold a total of seven ships for dirty and dangerous breaking in Bangladesh and Pakistan this year.

 

In April, we urged Bangladesh, India and Pakistan to halt the import of a highly toxic offshore unit that had illegally departed from Indonesia. The Floating Storage and Offloading (FSO) tanker J. NAT (now renamed RADIANT) left Indonesian waters despite local activists having warned Indonesian authorities about the toxicity of the vessel. Following our actions and local media reports, the government of Bangladesh directed all departments concerned not to allow the ship to enter Bangladeshi territory. Similarly, Indian authorities have recently warned Alang shipbreaking yards not to accept the toxic tanker for scrapping. Maritime sources now indicate that the vessel is sailing towards Gadani, Pakistan.

 

Almost one third of the ships sold to South Asia this quarter changed flag to the registries of Comoros, Gabon, Palau and St. Kitts and Nevis just weeks before hitting the beach. These flags are not typically used during the operational life of ships and offer ‘last voyage registration’ discounts. They are particularly popular with the middlemen scrap-dealers that purchase vessels cash from ship owners, and are grey- and black-listed due to their poor implementation of international maritime law.

 

The high number of flag changes at end-of-life seriously compromises the effectiveness of legislation based on flag state jurisdiction only, such as the European Union (EU) Ship Recycling Regulation. The Platform recorded at least seven ships that de-registered from a European flag registry (e.g. Cyprus, Germany, Malta) prior the last voyage to South Asia in order to circumvent EU legislation. The export of one of these ships also breached the Basel Convention’s Ban Amendment, which prohibits the export of hazardous waste, including end-of-life vessels, from the OECD, the EU and Liechtenstein to other countries – primarily developing countries or countries with economies in transition. The Ro-Ro cargo ship ZERAN, owned by Polish Ocean Lines, swapped its Maltese flag to that of Panama and illegally left Turkish waters at the end of July. It was beached in Bangladesh in September.   

 

Investigations have been launched by authorities in Iceland following the illegal export of two container vessels owned by Icelandic company Eimskip to India. Icelandic program Kveikur released a documentary on the murky sale of the two ships. Eimskip’s counterpart to the sale was none other than GMS, one of the most well-known cash buyers of end-of-life ships.

 

 

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

Platform publishes South Asia Quarterly Update #22

There were a total of 98 ships broken in the second quarter of 2020. Of these, 60 ships were sold to the beaches of South Asia, where, despite the majority of yards being closed due to the Covid-19 pandemic, shipbreaking kept putting workers’ lives at risk. Between April and June, at least 3 workers were severely injured in Bangladesh.

 

 

On April 24, Jalal (35) suffered an accident at Habib Steel shipbreaking yard. He got injured while carrying oxygen bottles from inside the ship.  

 

According to local sources and media, worker Md. Khalil (45) got injured on April 28 at an unauthorised shipbreaking yard recently opened by lawmaker Didarul Alam. Khalil’s leg broke after a hatch cover fell on him while dismantling the vessel Berge Eiger, owned by shipping company Berge Bulk. The worker was transferred to the Dhaka Hospital due to the severity of the injury. 

 

On June 22, an accident took place during an illegal night shift at Jumuna Ship Breakers yard. Abdul Halim (24) was hit by an iron piece in the stomach while cutting the vessel Stellar Knight, owned by South Korean Polaris Shipping. It took a couple of hours for the worker to be transported to the nearest hospital.

 

In the second quarter of 2020, Greek ship owners sold the most ships to South Asian yards, closely followed by Singaporean and South Korean owners. South Korean company Polaris Shipping sold three vessels to Bangladesh for dirty and dangerous breaking. The ship owner hit the headlines in June for the scuttling of the ore carrier STELLAR BANNER off the coast of Brazil.

 

In April, we urged Bangladesh to halt the import of a highly toxic offshore unit that had illegally departed from Indonesia. The Floating Storage and Offloading (FSO) tanker J. NAT left Indonesian waters even though local activists warned Indonesian authorities about the toxicity of the vessel. Following our actions and local media reports, the government of Bangladesh directed all departments concerned not to allow the ship to enter Bangladeshi territory. Maritime databases seem to indicate that the vessel reversed course and changed name to RADIANT. However, its current whereabouts are unknown. 

 

Almost one third of the ships sold to South Asia this quarter changed flag to the registries of Comoros, Palau and St. Kitts and Nevis just weeks before hitting the beach. These flags are not typically used during the operational life of ships and offer ‘last voyage registration’ discounts. They are particularly popular with the middlemen that purchase vessels cash from ship owners, and are grey- and black-listed due to their poor implementation of international maritime law. The high number of flag changes at end-of-life seriously compromises the effectiveness of legislation based on flag state jurisdiction only, such as the European Union (EU) Ship Recycling Regulation.

 

How Covid-19 is affecting vulnerable shipbreaking workers

 

The pandemic is still affecting workers globally, including those employed in the shipbreaking sector in South Asia. 

 

Bangladesh

 

According to local sources, all shipbreaking yards resumed their activities on June 1. One third of them never shut down despite the lockdown, exposing the workers to the risk of contracting the virus and spreading it in the vulnerable local communities.

 

Having been deprived of accessing government support, which is offered only to local workers, migrant workers have been unable to return to their home villages due to the absence of public transport services. Forced to continue to pay rent for the unsanitary and improper accommodation near the shipbreaking yards, migrant workers, mainly from the Northwest of Bangladesh, have been left to starve. This unprecedented emergency situation led us to raise financial support to distribute, in partnership with our member organisation OSHE, food and personal protective equipment items to 130 of the most deprived shipbreaking workers’ families in Sitakunda. 

 

India

 

After a month since the start of the national lockdown in India, the government announced the reopening of several industries in Gujarat. At the end of June, around 30% of the workforce was working at the shipbreaking yards in Alang. The fact that around 75% the migrant workers returned to their home villages in Bihar, Odisha, Uttar Pradesh and Maharashtra has led the yard owners to look at the diamond sector’s unemployed workers from Saurashtra.

 

Platform publishes South Asia Quarterly Update #21

There were a total of 166 ships broken in the first quarter of 2020. Of these, 126 ships were sold to the beaches of South Asia for dirty and dangerous breaking [1]. Between January and March, at least 4 workers have lost their lives and at least 7 were severely injured when breaking ships in Bangladesh. 

 

 

On February 3, Liton Das (27) was hit by a falling iron plate on his right leg at the Bangladeshi M.M. shipbreaking yard. Liton currently lies in his bed at home with an open wound at high risk of infection. 

 

On February 4, cutter man Kiron Tripura (28) died at Ziri Subedar shipbreaking yard. A week later, Md. Mizanur Rahman (22) fell from great height whilst dismantling the vessel Anangel Hali, owned by Greek Angelicoussis Shipping Group, at S.N. Corporation yard. Mizanur died on the spot. He had started to work as a shipbreaker only four days prior his death. 

 

On March 24, two brothers, Sumon Das (45) and Nironjon Das (48), died when breathing atoxic gas, while working in the engine room of the tanker West Energy, owned by South Korean company Sinokor. The vessel was beached at Kabir Steel’s Khawja shipbreaking yard. Sumon and Nironjon leave five children behind. In the same accident, two other workers, Kawser and Habib, were also exposed to the toxic gas and fell sick. The Department of Inspection for Factories Establishments (DIFE) stated to local media that the accident will be investigated.  

 

Accident records in Gadani, Pakistan and Alang, India, are extremely difficult to obtain. A recent 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 the beaching of vessels for breaking. Workers risk their lives due to lack of infrastructure and dangerous conditions. They are furthermore not provided adequate respiratory protective gear and thus exposed to hazardous materials and gases that impair their health, causing cancer and other respiratory diseases. The death toll caused by occupational diseases contracted at the beaching yards is not disclosed in either India, Pakistan or Bangladesh, and is sadly likely to be shockingly high. 

 

In the first quarter of 2020, Saudi Arabian ship owners sold the most ships to South Asian yards, followed by South Korean and Greek owners. Shipping company Berge Bulk sent five vessels to Bangladesh for dirty and dangerous breaking.. These add up to the four ships that the ship owner sold to the same beach last year. 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.

 

Almost half of the ships sold to South Asia this quarter changed flag to the registries of Comoros, Gabon, Palau and St. Kitts and Nevis just weeks before hitting the beach. These flags are not typically used during the operational life of ships and offer ‘last voyage registration’ discounts. They are particularly popular with the middlemen that purchase vessels cash from ship owners, and are grey- and black-listed shipping registries due to their poor implementation of international maritime law. 

 

The high number of flag changes at end-of-life seriously compromises the effectiveness of legislation based on flag state jurisdiction only, such as the European Union (EU) Ship Recycling Regulation. The Platform recorded at least six ships that de-registered from an European flag registry prior the last voyage to South Asia in order to circumvent EU legislation. 

 

How Covid-19 pandemic is affecting vulnerable shipbreaking workers

 

The current Covid-19 pandemic is also affecting the South Asian shipbreaking workers. Authorities have halted imports of vessels and imposed strict lockdowns.

 

As reported by the newspaper The Indian Express, migrant workers in Alang, unable to return to their home villages, are facing serious financial difficulties. They are yet to receive their March salaries and have not received any alternative support, such as food, from their employers. Fortunately, media report that the Gujarat government has now stepped in and distributed thousands of ration kits to the migrant workforce stuck in Alang.

 

In Pakistan, more than 400 food bags were handed out to the National Trade Union Federation Pakistan and the Shipbreaking workers Union at Gadani shipbreaking yard.

 

In Bangladesh, according to the Platform’s member organisation YPSA, only local workers are partially receiving food support from the government and from some yard owners. Migrant workers, on the other hand, have not received any public support. YPSA and OSHE, another Platform member organisation active in the Chattogram area, are currently providing assistance to part of the migrant workforce. There is a dire need to secure emergency food assistance, as well as medical check-ups and awareness raising to avoid the spread of Covid-19.

 

PLEASE DONATE TODAY AND HELP MAKE A DIFFERENCE

 

DONATE ONLINE or by BANK TRANSFER

 

In the shipbreaking area of Chattogram, Bangladesh, 1070 workers that have lost their income due to the Covid-19 lockdown have received food supplies [2]. However, this is not enough as there are thousands of workers and their families who need support. We are therefore calling for YOUR support NOW to make the delivery of food packages to more workers and their  families possible. In collaboration with our member organisation OSHE, we will mobilise resources during this challenging and difficult time. 

 

Every little bit helps! Your gift will feed not only the workers but their families too!

 

Help Migrant Workers Programme

 

€50
Feeds 1 family – 5 family members – for 2 weeks

 

€100
Feeds 2 families – 10 family members – for 2 weeks

 

€500
Feeds 10 families – 50 family members – for 2 weeks

 

€1,000
Feeds 20 families – 100 family members – for 2 weeks

 

€1,000+
We still need to help thousands of workers who have been affected by this pandemic

 

€ 
Other amount (please specify)

 

Please put reference “FOOD PACKAGES” on your communication when making the donation.  All donation earmarked “FOOD PACKAGES” will go towards the Help Migrant Workers Programme in Bangladesh. Once the donation has been made, we would really appreciate if you could send us an e-mail with your full name and donation amount. If you need further information, please do not hesitate to contact us.

 

Thank you for your support!

 

 

 

NOTES

 

[1] During the first quarter of 2020, the following number of vessels were broken in other locations: 26 in Turkey, 6 in China, 5 in Europe and 3 in the rest of the world.

 

[2] YPSA’s Press Release

 

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

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.

page1image7386240

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.

 

Platform publishes South Asia Quarterly Update #20

There were a total of 122 ships broken in the third quarter of 2019. Of these, 73 ships were sold to the beaches of South Asia for dirty and dangerous breaking [1]. Between July and September, eleven workers have lost their lives and twenty were severely injured when breaking ships in Bangladesh and India. So far this year, the Platform has recorded 19 deaths and 30 severe injuries in South Asia.

 

 

 

Cutter helper Mamun Hossen (35) was killed on 3 July when he was crushed by a falling steel plate at Tahsin Steel Corp shipbreaking yard in Chattogram, Bangladesh. 

 

On 23 July, cutter man Shahidul (40) lost his life while working at Kabir Steel’s Khawja shipbreaking yard in Chattogram, Bangladesh. Shahidul was dismantling the container ship EVER UNION (IMO 9116618), owned by Taiwanese shipping giant Evergreen, when he fell from a great height. He died on the spot. Following the accident, the government imposed a three month ban on the import of end-of-life vessel on the yard, and has demanded that safety measures are taken. Already in 2018, Scandinavian investors withdrew their funds from Evergreen due to the company’s poor shipbreaking practices.

 

On 30 July, fitter men Nantu Hossen (24), Rasel Matabbor (25) and Chobidul (26) lost their lives due to a toxic gas leak on board the tanker MEDELIN ATLAS at Mak Corporation yard in Chattogram, Bangladesh. At least six other workers were severely injured. According to shipping databases, the vessel was sold for breaking by Indonesian ship owner Waruna Nusa Sentana. 

 

During the scrapping of the Greek-owned container ship CSL VIRGINIA (IMO 9289568) at Ziri shipbreaking yard in Bangladesh, a heavy cable collapsed on 31 August, hitting several workers at once. Aminul Islam (35) and Tushar Chakma (27) lost their lives. Thirteen other workers suffered severe injuries and were taken to Chattogram Medical College Hospital for treatment. 

 

The circumstances of two additional fatalities at the shipbreaking yards in Chattogram this quarter still remain unclear.

 

According to Indian media, two workers died on the shipbreaking beach of Alang in the last quarter. Two separate accidents took place at scrapping yards that have applied to be included in the EU list of approved ship recycling facilities and are promoted by the industry as “safe and green”. On 29 July, Subash Vishwakarma lost his life when a metal plate fell on his head at Priya Blue yard - Plot V1. On 3 September, an explosion during cutting operations caused the death of one worker and severely injured another worker at Shree Ram’s yard Plot 78/81. In September, Dutch TV revealed the dire working conditions at a yard owned by Priya Blue, and the trafficking of false inventories of hazardous materials to hide high levels of mercury onboard offshore units.

 

In the third quarter of 2019, Japanese, American and Greek ship owners sold the most ships to South Asian yards, followed by Indonesian and South Korean owners. 

 

Almost half of the ships sold to South Asia this quarter changed flag to the registries of Comoros, Gabon, Palau and St. Kitts and Nevis just weeks before hitting the beach. These flags are not typically used during the operational life of ships and offer ‘last voyage registration’ discounts. They are particularly popular with the middlemen that purchase vessels cash from ship owners, and are grey- and black-listed due to their poor implementation of international maritime law. The high number of flag changes at end-of-life seriously compromises the effectiveness of legislation based on flag state jurisdiction only, such as the EU Ship Recycling Regulation. 

 

Criminal investigations have been launched by authorities in Europe following Platform alerts of imminent illegal exports of toxic end-of-life vessels. The case of the ferry SIR ROBERT BOND is, however, illustrative of the Canadian government’s lack of action. In the last two years, the ship was bought and sold several times: from the Canadian government to a peat moss producer in New Brunswick, to an agent in Quebec, who allegedly sold it for scrap to Indian breakers. In May, the Platform alerted competent authorities about the imminent illegal export of the vessel to South Asia from Canada. Despite authorities having been informed, the owner managed to illegally tow the unit to Alang, where it was beached a few weeks ago.

 

NOTES

 

[1] During the second quarter of 2019, the following number of vessels were broken in other locations: 35 in Turkey, 5 in China, 4 in Europe and 5 in the rest of the world.

 

Press Release – NGOs release new report on North Sea oil and gas recycling

The NGO Shipbreaking Platform released today a research report titled “Recycling Outlook: Decommissioning of North Sea Floating Oil & Gas Units” during a seminar held in Oslo, Norway.

 

With the oil and gas sector seeing a downturn since 2014, the Platform has documented an increasing number of offshore units sold for scrap. While the recycling of fixed installations occurs under strict regulations, there are serious concerns regarding the recycling of floating structures, which classify as vessels. Around 200 floating structures have been identified as scrapped globally since 2015 – an estimated 40% of these assets ended up on South Asian beaches, where they were broken up under conditions that cause irreparable damage to the coastal environment and put workers’ lives and health at risk.

 

Numerous  floating platforms and oil and gas structures can be found in the North Sea, where the global oversupply in the rig-market is pushing the oldest assets to be scrapped. There are currently 59 floating mobile drilling rigs in the North Sea, 18 of which were built before 2001. Whilst some of the older units might be converted/upgraded, it is estimated that most of them will be scrapped in the coming years. So far, the only structure which operated in the North Sea and has been traced to a South Asian beaching yard is the FPSO North Sea Producer. There is a real risk, however, that we will see more of these cases coming up in the near future with more decommissioning projects in the North Sea.

 

The NGO Shipbreaking Platform advocates for the use of green recycling capacity already existing in the region. Indeed, North Sea recycling yards have years of experience decommissioning fixed oil and gas structures. There are several dry docks and contained slipway facilities where the dismantling of  floating structures can take place safely and with due regard for labour and environmental concerns. Ehancing the recycling of offshore structures and ships in Europe would furthermore bring opportunities for the many workers that were laid off  after the recession in the oil and gas sector in 2014.

 

The report was published with the support of Norwegian pension fund KLP. KLP promotes, as an essential part of its responsibility, practices of corporate responsibility and responsible investment. As a large investor in Norwegian companies, and companies based outside of Norway operating in the North Sea, it strives to ensure the responsible recycling of ships and offshore assets, aiming at contributing to a shift towards better practices in the sector.

Photos from KLP's seminar "Responsible disposal of ships and rigs" - © Cato Gustavson/KLP

Platform publishes South Asia Quarterly Update #19

There were a total of 193 ships broken in the second quarter of 2019. Of these, 146 ships were sold to the infamous scrapping beaches of South Asia, where working conditions are known to be dire and breaking practices cause irreparable damage to the coastal environment [1]. Between April and June, Platform sources recorded three accidents that killed at least five workers on the beach of Chittagong, Bangladesh, bringing the total death-toll of the shipbreaking industry this year to at least eight workers. 

 

 

In the early morning of 15 May, a loud blast shook the Chittagong shipbreaking area. A fire broke out on board the vessel BUNGA KELANA 4 (IMO 9178343), beached at Mahinur Ship Breaking yard, also known as Premium Trade Corporation. Video footage of the attempts to rescue workers showed extremely rudimentary conditions and a total lack of appropriate emergency response and equipment. Cutter men Mohammod Rubel, Hamidul Islam and Md Jolil lost their lives in the accident. Four other workers suffered severe burn injuries. Platform member organisation OSHE reports that the death of another worker, Tara Miya, was covered up in the same yard just a few days before the tragic event. On 20 May, Md Manik died when electrocuted at Bathiari Steel. He had been tasked with the illegal construction of barge. 

 

At least another six workers were severely injured at the Bangladeshi shipbreaking yards last quarter. Two were injured when a fire broke out on the bulk carrier COMPROMISE (IMO 9044475) on 28 May. According to maritime databases and local sources, the ship was sold by South Korean SK Shipping to HM Steel shipbreaking yard in Chittagong. 

 

Accident records in Gadani, Pakistan and Alang, India, are extremely difficult to obtain. The local government in Alang does not publish any official statistics, and it systematically refuses to provide civil society organisations and independent journalists access to the yards. Recently stopped by the Gujarat Maritime Board, journalists from French public television were forced to hand over their camera so their footage could be deleted. Part of their video material, however, managed to see the light of day and was aired in June. It effectively reveals the poor working and environmental conditions that the local authorities in Alang seek to hide.

 

In Bangladesh, it was revealed that the shipbreaking company BBC Ship Breaking had been fraudulently given the permission by local authorities to wipe out a protected mangrove forest in order to establish a new yard. Following the filing of a complaint by Platform member organisation BELA, the High Court imposed a six months’ stay on the lease contract and have asked the local authorities to explain why they blatantly ignore national forest protection laws. In 2009, 14.000 mangrove trees were illegally cut to expand the dirty and dangerous shipbreaking activities in Chittagong. Despite a clear order by the High Court in 2010, none of these trees have been replanted.

 

Poor enforcement of national and international environmental and labour laws causes irreparable damage to the environment, workers and local communities. As yards can avoid costs linked to proper environmental protection and the respect of labour rights, their lower operational costs render them a financially more profitable end-of-life destination for ship owners. In the second quarter of 2019, Japanese, Saudi Arabian and Greek ship owners sold the most ships to South Asian yards, followed by Indonesian and South Korean owners. 

 

All ships sold to the Chittagong, Alang and Gadani yards pass via the hands of scrap-dealers, also known as cash buyers, that most often re-register and re-flag the vessels on their final voyage. Grey- and black-listed flags of convenience are particularly popular with cash buyers, and more than half of the ships sold to South Asia this quarter changed flag to the registries of Comoros, Niue, Palau and St. Kitts and Nevis just weeks before hitting the beach. These flags are not typically used during the operational life of ships and offer ‘last voyage registration’ discounts. They are grey- and black-listed due to their poor implementation of international maritime law. 

 

The high number of flag changes should induce serious concerns with regards to the effectiveness of legislation based on flag state jurisdiction only, such as the EU Ship Recycling Regulation which became applicable on 1 January 2019. According to the Regulation, EU-flagged vessels have to be recycled in one of the 34 approved facilities included in the EU list. The Platform recorded at least two ships that de-registered from an European flag registry prior the last voyage to South Asia in order to circumvent the legislation. Both the Maltese-flagged ALPHA MILLENIUM and the Greek-flagged MARVELLOUS, which maritime sources link to Greek shipping company Alpha Bulkers, swapped their flags to Comoros prior reaching the beach of Chittagong, Bangladesh. 

 

The Platform has found that at least five other vessels [2], owned by Danish Maersk, Greek Chartworld Group, Greek Costamare and Norwegian KGJS (Kristian Gerhard Jebsen Skipsrederi), called at EU ports before starting their final voyage towards the shipbreaking beaches. It is likely that the decisions to export the assets for scrap were taken by these companies while on EU waters, in direct breach of the EU Waste Shipment Regulation. Clearly, more efforts are needed to ensure proper enforcement of current legislation on ship recycling as highest profit seems to be the only decisive factor most ship owners take into account when selling their vessels for breaking. 

 

 

NOTES

 

[1] During the second quarter of 2019, the following number of vessels were broken in other locations: 27 in Turkey, 5 in China, 3 in Europe and 12 in the rest of the world.

 

[2] CLAES MAERSK (IMO 9064396), CHILEAN REEFER (IMO 8917546), ELAFONISOS (IMO 9179816), SKS TIETE (IMO 9172650), SKS TANARO (IMO 9172662).

 

Platform publishes South Asia Quarterly Update #18

There were a total of 181 ships broken in the first quarter of 2019. Of these, 142 ships were sold to the beaches of South Asia where they were broken under conditions that cause irreversible damage to both human health and the environment [1]. Between January and March, three workers have lost their lives and four were severely injured when breaking ships in Bangladesh. 

 

 

On 28 January, according to local sources, Md Motiur Rahman lost his life while working at S. S. Green Ship Breaking yard, located on the beach of Chittagong, Bangladesh. Twenty days later, a fire broke out in the engine room on board the Greek-owned Polembros’ tanker S WARRIOR at Shagorika Ship Breaking Yard, killing workers Md Jamil and Bipul. 

 

No severe accidents were reported in India and Pakistan. Whilst information on accidents in Alang remain difficult to obtain due to lack of access and transparency, a significant decrease in scrapping activities has no doubt contributed to a quarter with no recorded accidents in Gadani. In the last six months, 70% of the workers are said to have lost their job. 

 

In the first quarter of 2019, US, Saudi Arabian and Singaporean ship owners sold the most ships to South Asian yards, followed by Greek and South Korean owners. 

 

Data keep showing significant activity in the decommissioning of oil and gas units. At least 12 offshore assets reached the end of their lives in the first three months of this year. Transocean Ltd., based in Switzerland and listed on the New York Stock Exchange, is the offshore drilling contractor that scrapped most units in the last decade. Despite being under the spotlight for a series of accidents involving some of its drilling units [2], the company always distinguished itself for having adopted a good end-of-life fleet management policy that required the use of recycling yards that do not operate on tidal beaches. Regrettably, Transocean, however, recently took the decision to scrap its semi-submersible platform JACK BATES (IMO 8755780) on the beach of Alang, India. The platform was beached in February at R.K. Industries (Unit-II), one of the yards that are part of the Shree Ram Group. Shree Ram claims its yards are amongst the best facilities operating on the Alang beach. Ship owners, such as Danish Maersk, praise the company’s practices. However, past media reports and a recent inspection visit to one of its plots by the European Commission have flagged serious concerns related to e.g. pollution of the intertidal area, absence of medical facilities, breaches of labour rights and lack of capacity to manage certain hazardous wastes downstream. Indeed, the facility did not meet the safety and environmental requirements for EU approval and was thus not added to the EU list.

 

Norwegian Grieg Green, ship recycling consultancy fully owned by Grieg Star, facilitated the sale of the JACK BATES and will monitor the scrapping operations on the ground. This is the first time Grieg Green offers its expertise on a demolition project taking place on a South Asian beach. Whilst its parent company has recently hit the news for being one of the first ship owners to scrap a vessel responsibly under the new EU Ship Recycling Regulation at Leyal ship recycling yard in Turkey, Grieg Green seems to have abandoned the Grieg Group’s off the beach stance. 

 

More than half of the ships sold to South Asia this quarter changed flag to the registries of Comoros, Niue, Palau and St. Kitts and Nevis just weeks before hitting the beach. All ships sold to the Chittagong, Alang and Gadani yards pass via the hands of scrap-dealers, also known as cash buyers, that often re-register and re-flag the vessel on its final voyage. Grey- and black-listed flags of convenience are particularly popular with cash buyers. These flags are not typically used during the operational life of ships and offer ‘last voyage registration’ discounts. They are grey- and black-listed due to their poor implementation of international maritime law. The high number of flag changes should alert authorities towards the ineffectiveness of legislation, including the EU Ship Recycling Regulation, which is based on flag state enforcement only.

 

The EU Ship Recycling Regulation became applicable on 1 January 2019. According to the Regulation, EU-flagged vessels have to be recycled in approved facilities included in the EU list. At least five ships were scrapped in accordance with the new requirements. However, the Platform recorded at least seven ships that swapped their European flag to that of a non-EU registry prior the last voyage to the shipbreaking yard in order to circumvent the legislation. Beaching yards do not feature on the EU list as they do not comply with the Regulation's requirements.

 

The case of the container ship BOXY LADY (IMO 9108386), owned by Greek Aims Shipping Corporation, illustrates how ship owners circumvent the law. In November 2018, the Platform alerted Spanish authorities about the imminent illegal export under the EU Waste Shipment Regulation of the Malta-flagged ship from the port of Vigo. Despite authorities having been informed, the vessel started its voyage towards Bangladesh. Aims Shipping Corporation then also managed to circumvent the EU Ship Recycling Regulation by changing the flag of the vessel to Bahamas in December 2018, just prior to its beaching in Chittagong in March.  

 

The shipping industry claims that it is forced to re-flag as there is not enough capacity on the EU List. A report published in September last year by the NGO Shipbreaking Platform and Transport & Environment, however, showed that there was more than enough capacity, both in terms of tonnage and size, to cater for the EU flagged end-of-life fleet. Since then, two Turkish yards, a yard in the US and more European yards have been added to the list. This week the European Commission also announced that it intends to add a further eight yards operating in Denmark, Norway and Turkey to the List. Clearly, however, more efforts to detect violations of European waste law and stronger incentives, such as a return scheme for all vessels trading in the EU, are needed to ensure use of the EU list and proper enforcement of current legislation on ship recycling. 

 

 

NOTES

 

[1] During the first quarter of 2019, the following number of vessels were broken in other locations: 20 in Turkey, 1 in China, 8 in Europe and 10 in the rest of the world.

 

[2] The explosion of the Deepwater Horizon, the leak off the Brazilian coast caused by the Sedco 706 and the grounding of the Transocean Winner hurt the offshore giant’s reputation. 

 

Press Release – Platform publishes list of ships dismantled worldwide in 2018

Record-breaking 90% of end-of-life tonnage scrapped on South Asian beaches

 

According to new data released today by the NGO Shipbreaking Platform, 744 large ocean-going commercial vessels were sold to the scrap yards in 2018. Of these vessels, 518 were broken down on tidal mudflats in Bangladesh, India and Pakistan, amounting to a record-breaking 90,4% of the gross tonnage dismantled globally. 

"The figures of 2018 are shocking. No ship owner can claim to be unaware of the dire conditions at the beaching yards, still they massively continue to sell their vessels to the worst yards to get the highest price for their ships. The harm caused by beaching is real. Workers risk their lives, suffer from exposure to toxics, and coastal ecosystems are devastated. Ship owners have a responsibility to sell to recycling yards that invest in their workers and environment."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

Last year, at least 35 workers lost their lives when breaking apart the global fleet. The Platform documented at least 14 workers that died in Alang, making 2018 one of one of the worse years for Indian yards in terms of accident records in the last decade. Another 20 workers died and 12 workers were severely injured in the Bangladeshi yards. In Pakistan, local sources confirmed 1 death and 27 injuries. Seven injuries were linked to yet another fire that broke out on-board a beached tanker. 

 


DUMPERS 2018 – Worst practices

 

UNITED ARAB EMIRATES, GREECE and UNITED STATES OF AMERICA top the list of country dumpers in 2018. UAE owners were responsible for the highest absolute number of ships sold to South Asian shipbreaking yards in 2018: there were 61 ships in total. Greek owners, beached 57 vessels out of a total of 66 sold for demolition. American owners closely followed with 53 end-of-life vessels broken up on South Asian tidal mudflats. 

 

The ‘worst corporate dumper’ prize goes to the South Korean liner Sinokor Merchant Marine. The company, which has been loss-making and is about to merge its container operations with Heung-A, sold 11 ships for breaking on the beaches in 2018: eight vessels ended up in Bangladesh and three in India, where in April, during the demolition of Sinokor’s PLATA GLORY at Leela Ship Recycling Yard [1], a worker died hit by a falling iron plate. 

 

Norwegian Nordic American Tankers (NAT) - incorporated in Bermuda and stock-listed in New York - is runner-up for the ‘worst dumper’ prize. Last year, NAT reported having earned USD 80 million for the sale of eight vessels for breaking. Three were sold to Alang for breaking and five were sold to breakers in Chittagong. According to local sources in Bangladesh, the cutting operations of these ships started without required government authorisations. The sale of two additional vessels to yards in Bangladesh with particularly poor track records and where two workers were killed in 2018, prompted Norwegian pension fund KLP to blacklist the company. 

 

Seven vessels were sold to beaching yards for dirty and dangerous scrapping by German owner Dr Peters GmbH & Co KG. According to local sources, fitter Md Samiul lost his life while scrapping Dr Peters’ DS WARRIOR in December 2018.

 

Other known shipping companies that in 2018 sold their vessels for the highest price to the worst breaking yards include: Chevron, Costamare, H-Line, Louis plc, Seabulk, SOVCOMFLOT, Teekay, Zodiac Group and CMB. Belgian CMB is still under investigation for the export of the MINERAL WATER to Bangladesh in 2016.


With the oil and gas sector seeing a downturn in the last couple of years, the Platform has documented an increase in offshore units that have gone for scrap. Out of the 138 oil and gas units which have been identified as demolished in 2018 alone, 96 ended up on the beaches of South Asia. Figures include 81 small-sized tug/supply ships and 33 semi-submersible platforms. Noble Corp, ENSCO, Tidewater, Diamond Offshore and Petrobras are amongst the biggest offshore players that dump their assets on the South Asian beaches. While most assets were exported from either East Asia or America, Diamond Offshore and cash buyer GMS are under investigation in Scotland for having attempted to illegally export three platforms that had operated in the North Sea and were cold-stacked in Cromarty Firth. The platforms have been under arrest in Scotland since January 2018.

 

Ship owners are facing increased pressure from investors and credit providers to stop selling their ships to beaching yards. In early 2018, Scandinavian pension funds KLP and GPFG were the first to divest from four shipping companies due to their beaching practices. 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.

 

Losing financing and clients, however, should not be the only concern of ship owners who continue to use dirty and dangerous scrap yards. In 2018, and for the first time ever, a ship owner was held criminally liable for having illegally traded four end-of-life ships to Indian beaching yards. Several other cases of illegal traffic are under investigation. These cases focus not only on the liability of the ship owner, but also on the responsibility of insurers, brokers and maritime warranty surveyors. By unravelling the murky practices of shipbreaking, which involve the use of middle men, or cash buyers, and flags of convenience such as Comoros, Palau and St. Kitts & Nevis, these cases highlight the importance of conducting due diligence when choosing business partners.

"Clean and safe solutions are already available. Responsible ship owners, such as Dutch Boskalis, German Hapag Lloyd, and Scandinavian companies Wallenius-Wilhelmsen and Grieg, recycle their vessels off the beach. The EU maintains a list of clean and safe ship recycling facilities [2]. More ships need to be diverted towards these sites."
Nicola Mulinaris - Communication and Policy Officer - NGO Shipbreaking Platform

For the list of all ships dismantled worldwide in 2018, click here. *

For detailed figures and analysis on ships dismantled in 2018, 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 Plata Glory was beached in December 2017 at Leela Ship Recycling yard. Leela holds a so-called Statement of Compliance with the Hong Kong Convention issued by ClassNK and claims to be offering “green recycling”.   

 

[2] The EU has published a list of ship recycling facilities around the world that comply with high standards for environmental protection and workers’ safety. The EU list of approved ship recycling facilities is the first of its kind and an important reference point for sustainable ship recycling.