EU Archives - Page 11 of 11 - NGO Shipbreaking Platform

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

Posted on 20/07/201630/08/2018 by admin_ec

"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

Press Release – European Commission report recommends the introduction of a Ship Recycling License

Posted on 06/07/201614/01/2022 by admin_ec

Ships regardless of their flag should not be allowed to call at any EU port without a ship recycling license to incentivise sustainable ship recycling, a European Commission report recommends.

The report written by Ecorys, classification society DNV-GL and the Erasmus University School of Law and published yesterday, looks into the possibility of introducing a financial incentive to enhance safe and environmentally sound ship recycling [1]. Ship recycling license fees would be earmarked to cover the cost-gap between substandard and sustainable end-of-life ship management. The capital amount accumulated during the operational life of the vessel would be set aside for the ship and only paid back to the last owner of the vessel as a premium if the ship is recycled in a sustainable facility approved by the EU.

The 2013 EU Ship Recycling Regulation requires all vessels sailing under an EU flag to use an approved ship recycling facility [2]. A major shortcoming of the Regulation, however, is that shipowners can circumvent the law by simply flagging out to a non-EU flag. At end-of-life, cash-buyers act as intermediaries and sell the vessels to substandard yards in South Asia often using flags of convenience which are grey- or black-listed by European governments under the Paris Memorandum of Understanding. Last year, Bangladesh, where human rights abuses and pollution caused by shipbreaking activities are known to be the worst, was the preferred destination for end-of-life ships. EU owners account for around one third of the end-of-life tonnage beached in substandard yards in Bangladesh, India and Pakistan. Thus, the EU is the single largest market sending end-of-life ships for dirty and dangerous shipbreaking and has a particular responsibility to regulate ship recycling [3].

NOTES

[1] Article 29 of the EU Ship Recycling Regulation asks the European Commission to submit a report on the feasibility of a financial instrument that would facilitate safe and sound ship recycling, and to accompany this report by a legislative proposal if deemed appropriate. For Regulation text see http://ec.europa.eu/environment/waste/ships/ For the report on a possible financial incentive see: http://ec.europa.eu/environment/waste/ships/pdf/financial_instrument_ship_recycling.pdf.

[2] A list of approved ship recycling facilities globally will be published by the end of 2016.

[3] Approximately 40% of the world fleet is controlled by owners based in the EU+EFTA, only 17% of the world fleet, however, sails under an EU+EFTA flag. The vast majority of EU-owned ships are sailing under the flags of states such as Panama, Liberia and the Marshall Islands during operational life. The percentage of EU flags drops to less than 8% at end-of-life.

[4] An earlier proposal for a 'ship recycling fund' was narrowly rejected by the European Parliament in 2013 with industry stakeholders, including the shipping industry and ports, strongly opposing the fund at the time. Whilst ship owners remain unwilling to bear the cost of sustainable recycling, both the public and private European port associations – ESPO and Feport – have now expressed that they are satisfied with the new license proposal. The license scheme will not be administered by the ports. It is also time-based, with the option of a monthly or yearly license, rather than based on the collection of a fee at each individual port call.

[5] See press release from 11 May 2016: http://www.seaeurope.eu/template.asp?f=pressreleases.asp.

For more information see our “What a difference a flag makes” report on why ship owners need to be held accountable for sustainable ship recycling beyond flag state jurisdiction.

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

Posted on 08/06/201623/08/2018 by admin_ec

"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

Platform News – NGO Shipbreaking Platform presents Annual Report 2015

Posted on 31/05/201614/01/2022 by admin_ec

The NGO Shipbreaking Platform presents its Annual Report 2015.

Check the new Annual Report to find out more about:

- our findings about global shipbreaking practices in 2015, including an overview of developments on the ground and statistics on the total number of ships dismantled in 2015;

- our activities and campaigns in 2015, including our policy campaign aimed at creating a legal framework that ensures the growth of clean and safe ship recycling globally; our corporate campaign calling upon ship owners, cargo owners, ship financers and recyclers to commit to sustainable ship recycling; and our work in the shipbreaking countries where there is a need for strengthened regulation and implementation of existing legislation to protect the workers and the environment;

- our wide outreach in the press and on social media;

- latest organisational developments.

Platform News – UN Special Rapporteur concerned about German shipbreaking practices

Posted on 26/05/201623/08/2018 by admin_ec

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

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

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

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

Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform

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

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

More information from the Business & Human Rights Resource Centre.

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

Posted on 12/05/201623/08/2018 by admin_ec

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

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

Ritwick Dutta - Advocate - Legal Initiative for Forest and Environment (LIFE)

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

Satish Sinha - Toxic Links

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

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

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

Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform

Platform News – Shooting and fatal accidents at Kabir shipbreaking: Belgian ship owner CMB, Greek Kanellakis Group and Standard Chartered linked

Posted on 09/05/201625/01/2021 by admin_ec

Standard Chartered Bank, Belgian ship owner CMB / Bocimar as well as the Greek Kanellakis Group are linked to Kabir Steel, a Bangladeshi shipbreaking yard and re-rolling mill with a particularly bad accident record where private security guards shot at locals protesting the death of worker Sumon on 28 March [1]. The leading Flemish daily newspaper De Standaard has analysed CMB’s substandard shipbreaking practices in a two page article published last Friday showing how the Antwerp-based shipping company uses cash buyers to rid itself of financial and legal risks. The Platform calls on these European companies to ensure that their value chain neither contributes to such negative human rights impacts nor to hazardous waste dumping and pollution in Bangladesh.

Whilst NGOs and international trade unions have called upon the police to impartially investigate the circumstances of the recent shooting episode at Kabir Steel, it is no secret that the Chittagong-based firm, which runs shipbreaking yards at two different plots as well as a local steel re-rolling mill, has a particularly bad accident record. In January 2014, three workers suffered severe burn injuries in an explosion on a tanker beached at the yard. Only after Platform members took up their case did the men receive treatment and support. The case received both local and international media attention, and the CEO of the Norwegian ship owner Teekay Corporation, whose vessel was involved in the incident, publicly stated that the company will stop selling ships to substandard yards. Early in 2014, two more workers, Jafar and Lipton, were injured and taken to hospital. In August 2014, worker Afzal died in the hospital after an accident at Kabir, and a second, unidentified man suffered injuries. In September 2014, 20 year old Asad Mia was killed at Kabir’s re-rolling mill to which the scrap steel is taken.

The London-headquartered Standard Chartered bank has, according to local informants, been issuing letters of credit or loans to Kabir Steel for the import of end-of-life vessels. The Platform has sent a letter to Standard Chartered’s management asking why the bank is working with a yard that clearly operates in breach of Standard Chartered’s own ship recycling policy: according to this policy the bank will only work with yards that meet international workers’ rights and environmental protection standards.

"None of the shipbreaking yards in Bangladesh operate in line with international standards for the environmentally sound management of hazardous waste as there are no waste treatment facilities available. Occupational health and safety measures are absent or inadequate as accidents regularly show. Most workers do not receive a living wage and any protest against the conditions can easily lead to losing one’s job. We do not believe that a bank such as Standard Chartered should be associated to such practices. [2]"

Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform

Leading banks, amongst them ABN AMRO, are cooperating with companies to invest in sustainable ship recycling in industrial platforms.

Also major European shipping companies are linked to the dangerous and dirty shipbreaking practices at Kabir Steel. The end-of life vessels currently being scrapped on the beach of Kabir Steel shipbreaking are the ALPHA FRIENDSHIP and the MINERAL WATER. The ALPHA FRIENDSHIP’s was sold to Kabir Steel for scrapping by Greek Kanellakis Group with the help of cash buyer Wirana. The ship owner is part of a group of shipping companies controlled by the influential Kanellakis and Angelicoussis family. The vessel arrived in Bangladesh this January while still registered under the Greek flag.

The MINERAL WATER was sold to Kabir Steel by Belgian ship owner CMB N.V. S.A. and its wholly-owned Belgian subsidiary Bocimar International with the help of cash buyer Western Overseas. CMB is an Antwerp-based company specialised in bulk carriers. It is controlled by the well-known Saverys family who also holds major stakes in other leading Belgian ship-owning companies, Exmar, Euronav and Delphis. The MINERAL WATER swapped its Belgian flag to that of Niue just weeks before hitting the beach in Chittagong mid-February. Niue, a Pacific island with around 2000 inhabitants, is on the European Union’s blacklist of the world’s 30 worst-offending tax havens and has recently come up as a new low-cost flag of convenience for end-of-life vessels.

"The example of the CMB vessel shows how easy it is for ship owners to circumvent any regulation based on flag state jurisdiction. Flag of convenience states such as Niue are not likely to strictly enforce or even ratify international law. The real ship-owning nations such as Belgium cannot continue to rely on tax havens and substandard shipbreaking countries to ensure sustainable ship recycling. At the European level a financial incentive to ensure better practices is being discussed – Belgium and other Member States should support this."

Ingvild Jenssen - Policy Director - NGO Shipbreaking Platform

The Platform is calling upon the European Union, where more than 40% of the world fleet is controlled, to ensure that ship owners cannot further exploit underpaid workers exposed to extremely dangerous working conditions and the absence of properly enforced environmental protection standards.

NOTES

[1] As reported by the NGO Shipbreaking Platform , private security guards employed by Kabir Steel shipbreaking, injured at least seven workers and locals when they gathered at the yard’s gate in protest of the death of Summon. The young man had been killed when he was hit by a truck transporting material from the shipbreaking yard. The yard management had first refused responsibility for the accident as the truck was owned by another company. The Platform and its local member organisations as well as Bangladeshi and international trade unions have strongly criticized the use of violence against protestors. They have both called on Kabir Steel to pay compensation owed to the victim’s family, and on the police and judiciary to properly and independently investigate the case to bring those responsible to justice. Meanwhile, Kabir has paid compensation to the victim’s family and those injured by bullets.

[2] For more information on the conditions at the shipbreaking yards in Chittagong, see short video by National Geographic.

Press Release – European ship owners on promotional tour in Alang – environmental and human rights activists denied access

Posted on 28/04/201625/01/2021 by admin_ec

The delegation will also not meet trade union representatives or workers, and will only visit a selection of very few yards. The visit is organised by industry association ECSA (European Community Shipowners’ Association) that represents the interests of European ship owners. It is an attempt by both ship owners and certain yards in India to convince European policy makers that yards in Alang should be approved for the upcoming EU list of accepted ship recycling facilities. However, under the European Ship Recycling Regulation and the recently published technical guidelines on the requirements for ship recycling facilities, it is clear that beaching facilities do not qualify for the EU list.

With regards to tomorrow’s visit, local environmental groups have raised several concerns related to the deplorable working conditions, poor downstream waste management and continued pollution of the coastal waters in Alang.

Platform News – European Union sets a global standard for sustainable ship recycling: NGOs call on shipping companies to use EU approved yards

Posted on 12/04/201623/08/2018 by admin_ec

Today, the European Commission (EC) publishes technical guidance for ship recycling facilities that want to be approved under the EU Ship Recycling Regulation. The European Union (EU) mirrors with this step the call by environmental and human rights NGOs for a relocation of ship recycling to platforms that can ensure sustainable practices. Facilities that intend to be listed as EU-approved will need to ensure safe working conditions, pollution control including proper downstream waste management and enforcement of international labour rights.

According to the EU, ship recycling is an industrial activity that needs industrial methods, equipment and standards. Workers and the environment anywhere in the world have the same right to protection under the EU Regulation. Attempts by some Member States with strong shipping interests to water down the requirements of the Regulation, more specifically, to accept low-cost beaching facilities in South Asia as environmentally friendly and safe for workers in order to make it on the list, have not been successful.

The EU list of approved ship recycling facilities [1] will become a global reference point for sustainable ship recycling. It rewards the companies that already have or are willing to invest in the necessary infrastructure and the employment of fully trained workers to ensure safe and environmentally sound recycling practices. The yards responsible shipping companies such as Hapag Lloyd, Wilhelmsen, Grieg and Royal Dutch Boskalis work with in Europe, China and Turkey will most likely feature on the EU list after having provided evidence that they comply with the requirements and in some cases also having improved their practices in order to meet the European standard. By promising to clearly distinguishing good from bad practices [2], the EU list has also already prompted the establishment of new facilities that see opportunities for an increased market share.

For ship owners, the EU list will be the only guarantee that their end-of-life vessels are not causing harm to workers and the environment. Backed by ‘independent verifiers with qualifications’ and audits by the EC or agents acting on its behalf, a further important warranty lays in the right NGOs have to submit complaints and concerns to the EC regarding the functioning of a facility and with that prompt an on-site visit to establish whether the facility should be removed from the list.

NOTES

[1] The EU list of approved ship recycling facilities is expected to be published by the end of 2016. Applications from facilities that want to feature on the first batch of the list need to be sent to the EC by 1 July 2016.

[2] Unlike the industry driven International Maritime Organisation (IMO) the EU is not rubberstamping the unnecessarily risky activity of managing reverse logistics of ship material management on a beach.
The EU requirements go beyond the IMO’s Hong Kong Convention (HKC), a piece of law which was adopted in 2009, but so far has only been ratified by four countries and is unlikely to enter into force in due time. More than 100 global environmental and human rights organisations, the UN Special Rapporteur on Human Rights and Toxics and European policy makers have denounced the HKC for merely rubberstamping the status quo.

Press Release – NGO publishes 2015 list of all ships dismantled worldwide

Posted on 04/02/201618/01/2022 by admin_ec

Ignoring industry leaders and human rights and environmental organisations, ship owners continue to profit from dangerous and dirty shipbreaking practices on South Asian beaches in 2015, according to new data released today by the NGO Shipbreaking Platform. 768 large ocean-going vessels were sold to the scrap yards last year. 469 were broken on the beaches of India, Pakistan and Bangladesh where shipbreaking yards do not provide fundamental labour rights, ignore international waste trade law, and fail to respect international environmental protection standards.

One of many accidents that killed or maimed shipbreaking workers last year was a major gas explosion at Shitol Enterprise, a shipbreaking yard in Bangladesh. A gas cylinder burst killed four workers immediately and severely injured another four. The vessel they were breaking was sold to Shitol Enterprise by the Greek shipping company Universal Ship Management Corporation, and sailed under the flag of St. Kitts and Nevis, a typical low-cost, end-of-life flag of convenience. Greek owners by far outstripped ship owners of other nationalities by having sold the most end-of-life vessels to dirty and dangerous shipbreaking sites in South Asia, and for the first time in many years, Bangladesh was the world’s number one destination for scrap ships.

DUMPERS 2015 - examples of particularly bad practices

The worst dumper prize goes to IDAN OFER, son of shipping magnate Sammy Ofer. Idan Ofer owns QUANTUM PACIFIC GROUP and has a controlling stake in Israel's largest publicly traded company, ISRAEL CORPORATION. Combined, these shipping companies sold the highest number of vessels for substandard breaking operations in 2015: nine in total, with six of them going to Bangladesh, where conditions are known to be worst.

GREEK SHIP OWNERS sold the most ships to South Asian shipbreaking yards in 2015, with 87 ships in total. Since the NGO Shipbreaking Platform started to compile data on world-wide ship dismantling practices in 2009, Greek shipping companies have unceasingly topped the list of owners that opt for dirty and dangerous shipbreaking. Backed by the Greek government, they continue to refuse liability for the damage done to workers and the environment in South Asia.

Despite being part of several sustainable shipping initiatives and boosting environmentally friendly technologies on-board operational ships, well-known South Korean shipping companies such as HYUNDAI and HANJIN; Taiwanese container giant EVERGREEN; and Japanese companies including MOL, K-LINE and the TOYOTA owned TOYOFUJI sold vessels for breaking in Bangladesh in clear contradiction of their own company values and standards. SOUTH KOREAN SHIP OWNERS sold 27 ships exclusively to South Asia, mostly to Bangladesh. Also JAPANESE SHIP OWNERS sold exclusively to South Asia, many to Bangladesh.

German shipping company NORDDEUTSCHE VERMÖGEN sold three vessels to the beaches of India and Bangladesh – the Northern Glance, the Northern Diversity and the Northern Vitality. The latter had been arrested in the port of Wilhelmshaven in Germany in 2012 to prevent an imminent illegal export to India. Despite awareness of the poor conditions at the South Asian shipbreaking yards NORDDEUTSCHE VERMÖGEN did not care about their vessels hitting the beaches, one of which went to Bangladesh - no lesson learnt. See our latest blog-post on the case here.

Polish government-owned POLSTEAM sold ships to Bangladesh and Pakistan – and refused to take responsibility for their own actions following an alert sent by the NGO Shipbreaking Platform. Worse, the Polish government has likewise not acted.

"Despite a lot of international attention on the problems of shipbreaking on the beaches of South Asia, the statistics for 2015 show that the vast majority of ship owners have not changed their practice for the better. On the contrary, most have opted for one of the worst shipbreaking destination in the world – Bangladesh, where children are still illegally exploited to break ships manually on tidal mudflats. [1] "

Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform

Ship owners sell their vessels to South Asian yards via cash-buyers, companies that specialise in the trade of end-of-life tonnage. Cash-buyers promise ship owners not only the highest price, but also to rid them of their responsibility to properly deal with the end-of-life management of their ships. [2] Ships contain large amounts of toxic materials such as oil sludge, asbestos and paints laden with heavy metals and would yield less profit at end-of-life if sold to a recycling facility that firmly follows environmental and occupational health and safety standards.

One sign of hope, is a group of leading ship owners that have vowed to take responsibility for clean and safe end-of-life management and demonstrate that alternatives are available. The European Union is also expected to publish a list of approved ship recycling facilities worldwide by the end of 2016. This will satisfy the call from those that demand better practices, including investors such as ABN-Amro and cargo owners such as H&M, Stora Enso and Phillips – none of whom wish to be associated with polluting and harmful end-of-life management of old ships. While, only vessels sailing under an EU flag will be legally obliged to use an EU approved recycling facility, any ship owner can nevertheless opt for an EU approved facility for its non-EU flagged ships on a voluntary basis. The NGO Shipbreaking Platform therefore demands that shipping companies and their investors only allow their vessels to go to yards listed on the EU list. Moreover, governments of the world’s leading maritime nations, such as Greece and Germany, must likewise take steps to ensure national use of the EU list. Introducing a financial incentive based on the polluter pays principle would go a far way in pushing irresponsible ship owners towards sustainable ship recycling. [3]

For detailed figures and analysis on ships dismantled in 2015, click here.
For background information on global ship dismantling practices, click here.

NOTES

[1] Last year, in Bangladesh alone, 16 workers lost their lives in explosions, by falling from heights or by being crushed by falling steel plates. At least 22 workers were seriously injured, and some of them are still awaiting proper medical treatment. Many more workers became ill from inhaling asbestos fibres and toxic fumes such as those released when cutting the ships with blow torches. According to the ILO and leading trade unions, shipbreaking on the beaches of South Asia is one of the most dangerous jobs in the world. Pakistani shipbreaking yards in Gadani also lack proper infrastructure and facilities to protect workers or to properly manage the hazardous wastes found on-board ships. Despite reported improvements in four Indian yards that have received a Statement of Compliance with the requirements of the International Maritime Organisation’s Hong Kong Convention from Japanese classification society ClassNK, concerns persist related to the continued operations in unprotected tidal waters; the lack of proper accommodation and medical facilities for workers; and the lack of proper downstream waste management. Six workers died in accidents at shipbreaking yards in India last year, however, the authorities do not disclose the accident record to the public. Yards in other parts of the world, are not necessarily all operating in line with standards that ensure sustainable ship recycling. While many ship recyclers will seek to have their facility listed on the EU list, only those that comply with the requirements and do not use unprotected beaches and coastal areas causing pollution of the marine environment, will be approved.

[2] Cash-buyers, such as GMS and Wirana, are responsible for almost all sales to substandard yards in South Asia. For more on the role of cash-buyers and especially their use of Flags of Convenience at end-of-life, see our report: What a difference a flag makes. Why ship owners’ responsibility to ensure sustainable ship recycling needs to go beyond flag state jurisdiction (2015).

[3] Possibilities for introducing a financial incentive for safe and clean ship recycling is being discussed at the European level. The idea is that all ships entering European waters will need to hold a ‘ship recycling licence’. Money set aside would only be paid back to the last ship owner upon proof that the ship has been recycled in a safe and environmentally friendly way.

Tag: EU

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

Press Release – European Commission report recommends the introduction of a Ship Recycling License

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

Platform News – NGO Shipbreaking Platform presents Annual Report 2015

Platform News – UN Special Rapporteur concerned about German shipbreaking practices

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

Platform News – Shooting and fatal accidents at Kabir shipbreaking: Belgian ship owner CMB, Greek Kanellakis Group and Standard Chartered linked

Press Release – European ship owners on promotional tour in Alang – environmental and human rights activists denied access

Platform News – European Union sets a global standard for sustainable ship recycling: NGOs call on shipping companies to use EU approved yards

Press Release – NGO publishes 2015 list of all ships dismantled worldwide

Ship owners found to be irresponsible: data on shipbreaking practices in 2015 reveal appalling record