ICS has issued a guide including transitional measures for ship recycling to help shipowners ensure to the greatest extent possible that their end of life ships will be recycled at facilities that are compliant with the standards enshrined in the IMO Hong Kong Convention, in advance of the global regime entering into legal force.
Until the Hong Kong Convention enters into force and legally defines what constitutes an acceptable ship recycling facility (or the European List of approved yards is sufficiently populated to provide a viable market) the ability of shipowners to identify acceptable yards and fulfil their obligations will be determined by how quickly States ratify the Convention, and how rapidly detailed information about recycling capacity that meets IMO standards can be disseminated throughout the industry. However, if shipowners apply the measures recommended below, they should be able to obtain some guarantee that a facility is competent and has sufficient capacity to handle a vessel in a safe and environmentally sound manner.
The mechanism described below applies certain practical provisions in the context of a contract of sale – with either a cash buyer or yard – thereby placing liabilities on the responsible parties at the appropriate point in the proceedings. This should give a legal weight to proceedings and encourage parties to live up to their responsibilities. This mechanism covers the most basic provisions required to ensure safe ship recycling.
It is recommended that in cases where recycling facilities refuse to accept these responsibilities then an alternative buyer should be sought.
Methods of Sale: Cash Buyer Versus Direct to Yard
The method of sale chosen by a shipowner will affect how the measures described below are applied. In cases where a shipowner contacts a facility directly, the contractual obligations will normally be shared by the yard and shipowner, as appropriate, without an intermediary.
Where a cash buyer is used, it is likely that the contract will require them to accept certain liabilities based on the accuracy of information about the yard they select in accordance with the shipowner’s demands. The extent of this liability will vary from case to case.
Ship Recycling Plan (SRP)
The principal requirement which a shipowner should include within the contract of sale is that the recycling yard to which the ship is to be sold should develop a Ship Recycling Plan (SRP) for the specific vessel in question. Where yards will not develop an SRP for the specific vessel an alternative buyer should be sought.
In order to assist with the development of such plans, shipowners should provide a completed IHM, including estimates of stores and operationally generated wastes that will be present at the time of delivery (see Section 1 above). Where available, copies of plans and ships drawings, and other appropriate records of alterations to the structure of the ship relevant to its present condition, should also be provided in order to ensure that the resulting SRP is as accurate and comprehensive as possible.
Ship recyclers should develop an SRP taking into account the information provided by the shipowner and detail procedures and measures relating to:
• Preparatory work to be carried out at a location other than the recycling facility, e.g. pre-treatment, identification of potential hazards and removal of stores;
• Procedures that will be followed in an on board check of the vessel on arrival, to identify any potential environmental or safety issues;
• Information on how the type and amount of hazardous materials will be managed;
• How the facility will establish, maintain and monitor ‘safe for entry’ and ‘safe for hot work’ procedures;
• The dismantling sequence of the ship, taking into account cutting operations and locations of hazardous materials;
• Other ship specific processes and/or procedures that will be necessary to recycle the ship which are not covered in the Ship Recycling Facility Plan (SRFP) and
• A copy of the Declaration of Authorisation for Ship Recycling where the State has ratified the Hong Kong Convention; or the relevant authorisation under the EU Regulation where applicable; or an equivalent approval by the Competent Authority.
When a shipowner has received a completed plan from the ship recycling facility, it should be checked to ensure that the details of the hazardous materials which the facility can manage properly match those described in the IHM. If any discrepancies are found between the SRP and the IHM, the shipowner should identify these for action by the recycling facility
Certification and Flag State Reporting
The Hong Kong Convention and the EU Regulation enforce a survey and certification process under the oversight of State authorities to ensure compliance and transparency throughout the sale and recycling of a ship.
The extent to which a shipowner can fulfil these requirements may depend on when the Hong Kong Convention enters into force or if it is registered with a flag State that has ratified the Convention and is pre-empting its entry into force. For EU flag ships, the process is likely to come into effect on a shorter timescale, with owners reporting to their flag States and being required only to use facilities on the ‘European List’.
Despite this uncertainty, there are clear benefits for shipowners who obtain confirmation that they have acted in accordance with the applicable terms of the Convention or EU Regulation and who receive an acknowledgment of this from their flag State. To facilitate such an acknowledgement, shipowners should consider requesting classification societies to confirm – to the extent they will be required to do so under the Convention – that the recommendations of these Transitional Measures have been followed to the furthest extent possible.
This confirmation should be deposited with the flag State. This will not only demonstrate goodwill on the part of the shipping company, but will also assist in the resolution of any disputes.
Learn more details by reading ICS report
Source & Image Credit : ICS
Very interesting!
The weak point may be the intermediate – the cash buyer – as he might promise green recycling but may choose a different facility than the one agreed with the owner. The capacity and timing is important and should be properly considered when selling a ship for recycling. Spontaneous Recycling will become more difficult and owners should properly plan the recycling as well.
However, there are intermediates / experts with proper and neutral understanding which are not guided by economical pros and cons of the facility chosen.
However, a good Approach by ICS and hopefully these measurers will be used extensivel!