Ship Recycling

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Shipping industry criticized for shipbreaking practices

One of the issues that the shipping industry has been criticized is for allowing vessels to be broken up on beaches. Campaigners say that this method risks workers’ safety and is the sea. Now, the industry’s financial backers are also criticizing it, as many of them are reconsidering their investments over ethical and green considerations.

Recycling age for tankers reduced but increased for bulk carriers

As Vessels Value informed, the average age of tankers going for recycling has decreased below 25 years of age, as a result of lower earnings. Tankers are now being scrapped at a younger age than they were during a similar rate weakness in 2013. For bulk carriers, only ships that are way passed their service life are being recycled

China bans scrapping of foreign ships at its yards

Starting from the beginning of 2019, China will stop permitting foreign-flagged vessels to be dismantled at its shipyards, according to an official announcement by the government last week. Chinese-flagged ships will still be allowed to be recycled internally at its local shipyards.

ISRA appoints new director

The International Ship Recycling Association (ISRA) announced the appointment of Dutchman Reinoud Pijpers as its new Director. Mr. Pijpers’s appointment will be effective from May 1. Mr. Pijpers has previously held positions with the Dutch Ministry of Maritime Affairs, and is now taking over from current ISRA director Arjen Uytendaal.

Death toll remains high in Southeast Asian shipbreaking yards

Death rate in Southeast Asian shipbreaking yards for 2018 has so far seen an upsurge, with 10 fatalities and 2 serious injuries in Chittagong alone, according to figures published by NGO Shipbreaking Platform for the first quarter of the year. There was a total of 206 ships broken in Q1 2018, 152 of which were sold to the beaches of South Asia for dirty and dangerous breaking.

KfW joins ship recycling initiative

KfW IPEX-Bank became the first German bank to join the initiative “Responsible Ship Recycling Standards”. This initiative aims to include scrapping clauses in accordance with international standards into loan agreements, and wants shipping companies to provide at least the minimum standards of occupational safety and environmental protection when scrapping their ships

Criminal liability risks for shipowners over illegal scrapping

Following Seatrade’s conviction of illegally selling vessels for demolition in South Asian yards, in breach of the EU Waste Shipment Regulation, the Swedish P&I Club recommended shipowners to take greater notice of the regulations when considering demolition. This was the first time an EU shipowner has been held criminally liable for such case.

Brexit implications on ship recycling

The Commission highlighted that Brexit implementation means that all EU primary and secondary law will cease to apply to the UK from 30 March 2019, unless a ratified withdrawal agreement establishes another date. The UK will then become a ‘third country’, which affects, among others, the EU Regulation on ship recycling. 

OSV scrapping rates reach 150% increase in 2017

Offshore Support Vessels scrapping has been increased by 153%, because of the large downturn that the offshore industry has seen since 2014-2015. This made more and more companies to scrap their OSVs, rather than keep them. So far in 2018, 43 OSV vessels have been sold for scrap. In the first three months of 2017 only 17 vessels were sold.

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