11 November 2011

Grieg Green AS: Green Ship Recycling Service Provider

Ship Recycling Industry:

The ship recycling industry has an infamous reputation – mostly due to a total lack of safety and environmental standards. Traditionally vessels have been sold, often through middle men, to the highest bidders – normally the yards who have invested the least in training, equipment and facilities. More than 80% of vessels demolished today still end their lives on polluted beaches somewhere in South East Asia.

Normal practice among ship owners has been to conceal the identity of their vessels before they reach the demolition yard in an attempt to protect their reputation from disreputable recycling methods. The last days of a ship can be in stark contrast to its operating life during which it receives the best care and maintenance whilst upholding all safety standards. We believe, with a little effort and the right choices, the situation can be very different.

There are currently some 300 demolition yards world-wide serving international shipping clients. Less than 10% of these yards are of a standard considered acceptable according to modern regulations for safety and environmental standards. There are vast differences amongst the recycling yards in the most active countries.

India, Pakistan and Bangladesh have scattered and fragmented markets with a few large recycling yards and an array of smaller facilities. Most, if not all, of these yards use the beaching method when demolishing vessels.

Government-approved yards in China use quay-side demolition methods combined with the use of heavy cranes and floating or dry docks in the process. This is a method which Grieg Green finds to be both more environmentally friendly and adheres to international safety standards, hence is our main focus.

The recycling industry has changed dramatically over the last few years. It has developed from being a shameful part of our business to be an area the most modern owners want to be proud of – in the same way they are proud of the standard of their ships in operation. This change has come in part due to the constant focus from environmental groups and the media and has been made possible with a will to change the international legislation governing this area. In a competitive world, the responsibility we have towards our environment cannot be shouldered by some ship owners alone – it must be a common effort from all players in the industry.

The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships was adopted by the International Maritime Organization (IMO) in May 2009.

The Convention will regulate the design, construction, operation and preparation of ships to allow for safe and environmentally sound recycling. It will also provide strict guidelines for the operation of ship-recycling yards. The Convention dictates that vessels must carry an Inventory of Hazardous Materials (IHM)* on-board. Ship-recycling yards will be required to provide a detailed ship recycling plan before work can commence. Member-states will be asked to ensure that facilities under their jurisdiction comply with the Convention. The Convention will enter into force as soon as the ratification process has been fulfilled as per defined criterion.

The *Inventory of Hazardous Materials provides relevant information to recycling facilities about hazardous materials contained in parts or systems of a ship. These are materials that the recycling facilities may encounter during dismantling of the vessel. The inventory also provides valuable safety, health and environmental information for seafarers onboard and for ship yards undertaking repairs or conversions.

Who is Grieg Green?

Grieg Green is a part of the Grieg Shipping Group, a fully integrated Norwegian shipping company with more than 125 years of experience in the maritime industry. The company has always maintained a strong focus on the environmental and sustainability aspects of our industry and is committed to the UN Global Compact’s principles.

Grieg Green builds on the knowledge and experience of the Grieg Shipping Group to offer a new and innovative way to handle the complex ship recycling process that is still financially viable and attractive to ship owners.

The media and social furore over to-date unsavory maritime practices in the recycling industry can be a thing of the past. We are committed to ensure an early implementation of the new IMO Convention for Ship Recycling while maintaining value maximization for our customers.

Grieg Green hand-picks from what we consider to be among the world’s top recycling yards – by using our own “score-card” rating method. We will follow up and obtain reports from regular inspections. We, further more, monitor our portfolio of yards regularly and do our best to bring our clients to the most competitive and environmentally-friendly yards in the market at any given time.

Complicated and financially unrewarding green ship recycling now belongs in the history books with the commitment and dedication from Grieg Green to make the ship recycling industry environmentally friendly and financially viable.

Why Was Green
Ship Recycling Challenging?
How Has Grieg Green Made It Attractive?
It’s too expensive
We form valuable alliances with yards that make the price point far more palatable to our customers. We encourage healthy competition among the yards in our portfolio in order that our customers get the best possible price for their vessels. Grieg Green does not rely on one yard alone to ensure that this competition thrives.
It’s too complicated to bother with
We manage the process on behalf of the owner, minimizing the need for in-house knowledge and resource allocation.
The global standards keep changing
We stay on top of the latest regulations for you and update our recycling yards accordingly with minimal changes or disruption to our customers.
There’s no tangible benefit          
The legislation in this field is changing so rapidly that what used to be a “recommendation” might soon become “law” and staying ahead of the curve is the best way to ensure minimal operational disruption.
The positive publicity and “environmentally-conscious” label also gains importance every day in this global green movement we are experiencing.
It’s too difficult to assess the suitability of the recycling yards and maintain contact with them.
Grieg Green’s experts on the ground have in-depth knowledge and experience on assessing yards and maintaining the relationships with them.
Ship recycling methods can often appear out-dated 
We use new and innovative methods to keep costs low whilst ensuring maximum residual value of our customers’ ships.

Environmental Profile:

Along with keeping tabs on the changing legislation on ship recycling and staying on top of the latest trends and prices in the industry, Grieg Green is committed to finding the best recycling yards there are available at our customers’ disposal. These will form the cornerstone of our business and our minimum requirements for yard partners include:
  • Adherence to the upcoming IMO Convention on ship recycling
  • Non-usage of the beaching method
  • Accordance with Grieg Group’s existing safety standards for training and equipment
  • Adherence to international standards on waste treatment (internal & external)
  • IHM Certification
  • Making a ship recycling plan available before transfer of ownership
  • Adherence to Grieg Group’s “Supplier Code of Conduct”
  • In addition to the above, our highly competent, environmentally-conscious and experienced personnel in Norway and China bring a broad range of diverse skills and knowledge to Grieg Green’s operations, promising our customers top of the line service unparalleled in the industry.

Products & Services:

Grieg Green offers ship-owners an environmentally advanced one-stop-shop covering the entire process of the recycling of a vessel that has reached its maturity. The scope is to manage all steps of the process from the planning of when a vessel should be recycled to the end-reporting and certificates that are issued when the job is completed. The aim is to minimize cost and the ship-owners’ use of internal resources during the planning and execution phase whilst maximizing the residual value of their ships.
We Start Earlier: With our vast experience in ship-owning, technical and crew management, we are able to start working with our clients at a much earlier time in the process than what is normal today. This enables us to carefully plan the last few months of the vessel’s operation, making the last voyages more optimal, manage residual fuel and ensure that the crew are appropriately handled.
Get More Out of Your Vessel: When required, we also assist in making detailed plans for the exclusion list to ensure that all parts of high value that can be used on other vessels in your fleet, or sold, are carefully removed and shipped to the right destinations. We are also able to facilitate the sale of these high value items.

Take Out the Hidden Cost: Grieg Green rids our customers of unnecessary and time-consuming intermediaries who add little but cost to the green recycling of vessels.

Shipyard Portfolio: Grieg Green prides itself on an established portfolio of pre-approved shipyards in strategic markets. We are in constant dialog with these partners to communicate our ideas and requirements.

Negotiation: On behalf of the ship-owner, we negotiate directly with the best recycling yards in the market – to secure a competitive offer for the vessel.

IHM: Grieg Green will arrange for your Green Passport / IHM in the most cost-effective and time-sensitive manner.

Document Management: Grieg Green facilitates and advise our customers on complying with documentation related to the vessel and the recycling of it.

Logistic Management: Grieg Green supports our customers (the ship owners) with logistics services like last voyage optimisation, last port assistance, equipment and spare-parts recovery.

Shipyard Supervision: Our experienced surveyors follow the recycling process at the yard to monitor that environmental and safety are followed the best way possible. We report on a weekly basis to the ship-owner and prepare an extensive final report upon completion.

Process of Ship Recycling:


The cost of environmentally conscious ship recycling is exaggerated. The price difference between the low and the high end yards is dynamic and varies with several market drivers such as steel demand and tax incentives, but is normally not nearly as high as most owners think. The service customers receive offers a significantly lower risk of environmental and safety issues, not to mention to your brand and reputation. By letting Grieg Green do a valuation of potential items aboard your vessel that can be sold or reused, this price difference can easily be absorbed and even add a positive margin from your choice of going green.

Grieg Green is a flexible service provider. Our customers can choose between a package solution that includes all of our services or decide to pick individual solutions from our products list. We are committed to ensure that our services are of the highest quality, following all the principals of the Grieg Group when it comes to environmental, safety and transparency standards while always making sure that our cost levels are very competitive in the market. We strive to eliminate intermediaries in the sales transaction so that you, as a customer, can be certain to get 100% value from any fees or commissions paid in the process.

Get a Quote From Grieg Green:

Grieg Green will, as your advisor, negotiate with what we believe are among the best shipyards in the recycling industry to provide our clients with a very competitive offer for your vessel. We encourage healthy competition between the yards in our portfolio and will not accept any unreasonable drop in prices from the yards just to have the “Green” label on their services. Grieg Green does not act as a cash buyer or a broker and does not charge any kind of commission to negotiate the sale for our customers. We base our income solely on fixed fees that are carefully explained to you before you decided to do business with us.

Quick & Effective:

To provide you with a quote for your vessel, we need to receive some information about the ship.  By following the below link you can download a form where you can fill out the information we will need to give you an accurate quote. Try to fill out the vessel information sheet as complete as possible, but if you are missing some of the requested information, don’t worry about it. Send us what you have. Further more, if you have any items/parts from the vessel that you, at this time, know want to keep, please mention these in the exclusion list, as found in a separate tab in the form.


Norway: Grieg Green AS
P.O. Box 513 Skøyen. Karenslyst allé 2. 0214 Oslo. Norway
Tel: +47 23274100. Fax: +47 23274101

China: Grieg Green AS
Unit 2904-2917, Shanghai Central Plaza. No. 381, Huai Hai Zhong Road
Shanghai 200020. P.R.China.
Tel: +8621 6171 1100. Fax: +8621 6171 1102

Contact email: green@grieg.no.

Source: Grieg Green

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