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

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

 

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

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

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

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

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

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

 

NOTES

 

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

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

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

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

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

 

 

Press Release – European industry, trade unions and NGOs jointly support the EESC’s call for a financial incentive to enhance sustainable ship recycling

Today, the European Economic and Social Committee (EESC) adopted an own initiative opinion that calls on the European Commission to introduce an incentive that will “eliminate the abuses of irresponsible ship dismantling through a system which creates added value in an end-of-life ship”. SEA Europe, IndustriAll Europe and the NGO Shipbreaking Platform join the EESC in supporting an incentive that will make sure ships are recycled in a safe and environmentally sound manner.

"European ship recycling companies are competitive with regards to sustainability and should be encouraged by an enabling public policy that will push ship owners towards the use of these facilities as well as enhance R&D towards more cost effective solutions in Europe."
Christophe Tytgat - Secretary General - SEA Europe

The aim of a financial incentive is to make sure that ship owners use the upcoming EU list of approved ship recycling facilities and do not simply circumvent the EU Ship Recycling Regulation by flagging out to a non-EU ship registry. The EESC opinion supports a financial incentive that recognises the responsibility of the ship owner through the ‘polluter pays principle’ and builds the cost of responsible recycling into ship operating costs.

"The social and environmental impacts of shipbreaking on the beaches of South Asia can no longer be viewed as an externality and should be accounted for in shipping companies’ individual accounts. Introducing a financial incentive at the EU level is feasible and in line with established legal principles. It also brings with it the promise of ensuring compliance with environmental and social standards aimed at improving ship recycling conditions globally."
Ingvild Jenssen - Policy Director - NGO Shipbreaking Platform

Ensuring sustainable ship recycling fits well with the EU’s aim of achieving a truly circular economy where valuable resources are not only reused, but also recycled in a safe and environmentally sound manner. The EU list of ship recycling facilities will function as an important market differentiator for yards that have already invested in proper occupational health, safety and environmental standards.

"Shipbreaking on the beaches of South Asia is considered by the ILO as one of the world’s most dangerous jobs. Incentivising sustainable practices is necessary for the creation of decent jobs in the ship recycling sector."
Luis Colunga - Deputy General Secretary - IndustriALL Europe

 

SEA Europe, the European Ships and Maritime Equipment Association is the voice of the European maritime technology industry. SEA Europe promotes and supports European business enterprises which are involved in the building, construction, maintenance and repair of all types of ships and other relevant maritime structures, including the complete supply chain of systems, equipment and services. www.seaeurope.eu

 

IndustriAll European Trade Union represents 6.9 million working men and women across supply chains in manufacturing, mining and energy sectors across Europe. IndustriAll Europe aims to protect and advance the rights of these workers. www.industriall-europe.eu

 

The NGO Shipbreaking Platform is a global coalition of 19 environmental, human rights and labour rights organisations working to prevent the dangerous pollution and unsafe working conditions caused when end-of-life ships containing toxic materials in their structure are freely traded in the global marketplace. www.shipbreakingplatform.org

 

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

Conditions at beaching yard strongly criticised

 

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

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

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

 

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

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

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

 

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

 

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

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

 

NOTES

 

[1] See Platform press release.

 

 

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

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

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

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

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

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

 

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

 

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

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

 

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

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

Platform News – NGO Shipbreaking Platform demands European Ship Recycling Licence

In a position paper published today, the NGO Shipbreaking Platform calls on the European Commission, the European Parliament and Member States to support the introduction of a financial mechanism that will enhance safe and environmentally sound ship recycling in line with the standard set by the European Ship Recycling Regulation. The NGO Shipbreaking Platform asks the EC to develop a legislative proposal in order to implement the polluter pays principle for ship owners with a European Ship Recycling Licence.

"Ship owners are all up in arms against an EU Ship Recycling License. A surprise? No. The shipping industry has been on the go for the last 15 years trying hard to fight off regulation that would really hold them accountable for dirty and dangerous shipbreaking practices. Now it is finally time to act!"
Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform

The NGO Shipbreaking Platform therefore calls
- on the European Commission, the European Parliament and Member States to support a legislative proposal that introduces an effective financial incentive in line with the polluter pays principle that supports clean and safe ship recycling;
- upon the EU and Member States to ensure that European shipping companies follow EU environmental law and do not resort to end-of-life practices that would never be allowed in Europe, in particular the dismantling of end-of-life ships in the intertidal zone of a beach;
- on Member States to support the transposition of the efforts made at the European level, that is, a quality standard for ship recycling, the EU List of approved ship recycling facilities and a financial incentive similar to the ship recycling licence, to the international level.

 

 

 

Platform News – SAVE THE DATE: “The Circular Economy” on 13 October 2016 in Brussels

The Circular Economy will be high up on the agenda of an event organised by the European Parliament’s S&D Group on Thursday 13 October 2016. The Platform’s Executive Director is speaking on a panel addressing innovations in recycling of cars, aeroplanes and ships.

 

At the event, Environment Commissioner Karmenu Vella will present the state-of-play on the EU Action Plan for the Circular Economy, while rapporteur Simona Bonafé will comment on the discussions taking place in the European Parliament on the waste package. Linkages to the energy and climate agenda, the impact on jobs and investment, as well as the importance of R&D and innovation will be addressed by a number of speakers during the morning session. In the afternoon, the experts will explore the potential of eco-design, reuse and remanufacturing and ways to close the loop for different transport modes.

 

The NGO Shipbreaking Platform will present solutions to the problems of today’s dirty and dangerous shipbreaking practices during the afternoon session. A circular economy strives at zero pollution and zero waste. Compared to cars and aviation, the shipping industry is a real laggard: ships are still being built with hazardous materials; they burn low-quality residual fuels that contain high amounts of black carbon, sulphur, ash and heavy metals; ship paints that are in direct contact with the eco system are still toxic; ship borne wastes continue to be dumped into the ocean; and last but not least, the vast majority of large commercial end-of-life vessels continue to be ramped up on intertidal beaches for breaking under extremely dangerous conditions for the workers and without containment of the pollutants.

"When it comes to recycling, it is so obvious that the shipping industry is still clinging on the old, linear model of ‘take, make, use, dump’. No need to say that ship recycling as such is a highly sustainable and necessary practice for a circular economy; however, the shipping industry is guided by the maximum profit it can obtain when selling their old tonnage to shipbreaking yards on the beaches of South Asia. State-of-the-art ship recycling aiming at zero waste, zero pollution and 100% sustainability is already available – we only need the right incentives to push ship owners towards these yards. This is why the Platform advocates for a strong legal framework without the loopholes created by non-compliant flags of convenience and where accountability clearly lies with the shipping industry."
Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform

Click here to view the full program of our event.

 

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

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

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

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

 

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

 

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

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

 

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

 

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

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

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

 

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

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

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.

"We call on the European Commission to follow-up this report with a legislative proposal. The effective implementation of European environmental policies has been dependent on making the 'polluter pay'. If the EU is serious about its commitment to sustainable ship recycling, all ship owners trading in Europe need to be held financially liable/"
Stephane Arditi - Products & Waste Policy Manager - European Environmental Bureau (EEB)

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].

"EU shipping companies should not circumvent EU environmental laws and not utilise practices that would never be allowed in Europe. EU flag-neutral measures which apply equally to all ships calling at EU ports are necessary to increase environmental protection."
Sotiris Raptis - Shipping and Aviation Officer - Transport and Environment

European ports are not opposing the ‘ship recycling license’ [4] and SeaEurope, Europe's ship yard and maritime equipment association, has expressed enthusiasm towards ensuring better implementation of the Ship Recycling Regulation - last month they called for support to enhance ship recycling capacity and R&D towards more cost effective solutions in Europe [5].

 

"The upcoming EU list of approved ship recycling facilities will function as an important market differentiator for yards that have already invested in proper occupational health & safety and environmental standards. The use of the EU listed facilities will however depend on the introduction of an effective financial incentive that forces irresponsible shipowners towards better practices."
Ingvild Jenssen - Policy Director - NGO Shipbreaking Platform

 

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

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

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

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

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

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

 

Platform News – NGO Shipbreaking Platform presents Annual Report 2015

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.

 

Download the Platform’s Annual Report 2015 here, or send us an email to order a hard copy.