29 March 2018

Workers' safety must come first - Deaths at shipbreaking yard


We are shocked at the recent deaths of two workers at the shipbreaking yards in Sitakunda. According to our report, one worker was killed at Premium Trade Corporation Shipbreaking Yard after being hit by an iron plate and the other one, a worker of RA Shipbreaking Yard, was killed after inhaling poisonous gas. But as usual, the owners of the yards claimed that these deaths were due to other reasons, which is outrageous.


Deaths and injuries at shipbreaking yards are a regular phenomenon in Bangladesh. According to Shipbreaking Platform, an international organisation working for safety at shipbreaking yards, at least 16 workers were killed and more than a hundred others were injured in accidents at different shipbreaking yards in Sitakunda last year and a staggering number of 181 workers died between 2005 and 2016.

Needless to say, shipbreaking is a hazardous job and workers at the yards are exposed to all kinds of toxins which can cause serious damage to their health. Toxic materials such as asbestos, mercury and lead have serious health hazards and regular exposure to such toxins can lead to severe illnesses and even death.

While the shipbreaking industry is booming in our country, the safety of the workers has not been given a priority by the owners of the scrap yards. We believe that these two deaths could have been avoided, if the workers had protective gear which their employers should have ensured. Thus we demand that the authorities take proper precautionary measures for the workers' safety. Also, the relevant laws must be implemented by the government so that workers' rights are protected in the industry

Source: the daily star. 31 January 2018

25 March 2018

Platform publishes list of ships dismantled worldwide in 2017


According to new data released today by the NGO Shipbreaking Platform, 835 large ocean-going commercial vessels were sold to the scrap yards in 2017. 543 were broken down – by hand – on the tidal beaches of Bangladesh, India and Pakistan: amounting to 80,3% of all tonnage dismantled globally.

“The figures of 2017 are a sad testimony of the shipping industry’s unwillingness to act responsibly. The reality is that yards with infrastructure fit for the heavy and hazardous industry that ship recycling is, and that can ensure safe working conditions and containment of pollutants, are not being used by ship owners”, says Ingvild Jenssen, Founder and Director of the NGO Shipbreaking Platform. “It is particularly shameful that so many European shipping companies scrap their vessels on beaches. Their obvious lack of interest to ensure that shipbreaking workers around the world enjoy best available technologies, and that the environment is equally protected everywhere, clearly calls for additional pressure from authorities, shipping clients and financers”, she adds.

The negative consequences of shipbreaking are real and felt by many. On the one hand, workers – often exploited migrants and some of them children – lose their life, suffer from injuries caused by fires, falling steel plates and the general unsafe working conditions, as well as from occupational diseases due to exposure to toxic fumes and materials. On the other hand, coastal ecosystems, and the local communities depending on them, are devastated by toxic spills and various pollutants leaking into the environment as a result of breaking vessels on beaches.

Despite the terrible accident that shook the international shipbreaking community in 2016, no lesson has been learned in Pakistan. In 2017, at least 10 workers lost their lives at the shipbreaking yards on the beach of Gadani. The Platform documented 15 deaths in the Bangladeshi yards last year, where also at least another 22 workers were seriously injured. Whilst international and local NGOs were repeatedly denied access to the Indian shipbreaking yards, the Platform was informed of at least eight fatal accidents in Alang in 2017.

Source: hellenic shipping news. 21 February 2018

Ship Recycling: The Relevance of the Basel Convention


The Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal, also known as the Basel Convention was adopted in 1989 and came into force in 1992. The Convention was aimed at controlling the movement and disposal of hazardous wastes from the developed countries to the developing countries, so that the illegal dumping of wastes by the operating companies could be prevented. The Convention does not prohibit the export of hazardous waste within the member states. However, it requires parties to follow a notice and consent system known as “prior informed consent.”

PHP yard

An amendment to the Convention was subsequently agreed, known as the Basel Ban Amendment, which prohibits the transportation of hazardous wastes from an OECD country to a non-OECD country.

Although the Ban Amendment isn’t in force yet, the provisions of both the Basel Convention and the Basel Ban Amendment are effectively applicable at a European level by means of the European Waste Shipment Regulation. Effectively, in absence of a legally-binding instrument applicable to end-of-life ships and offshore assets, European Waste Shipment Regulation is considered to be applicable to ships and offshore assets. This assertion means ships (and offshore structures) cannot be exported from an E.U. country to any of the major ship recycling countries (India, Pakistan, Bangladesh, China) except Turkey because it is a member of the OECD group.

The Hong Kong International Convention, adopted by the IMO in 2009 in response to the demands for a legally-binding instrument regulating the global ship recycling industry isn’t in force yet. However, it has managed to propel the developments in the industry. Several ship recycling yards in India, China and Turkey have developed their infrastructure in line with the Hong Kong Convention to obtain Statements of Compliance with Hong Kong Convention awarded by IACS-member classification societies.

These Statements of Compliance refute the claims that safe and environmentally sound ship recycling is not possible on yards in South Asia due to the use of the beaching method to dock end-of-life ships. These Statements of Compliance have brought the improvements made by yards in South Asia (in particular India) into the limelight, and now these yards are equivalent to others in terms of health, safety and environmental standards.

Presently, 50 percent of India’s active yards have obtained Statements of Compliance with the Hong Kong Convention, Bangladesh has one, China has six and Turkey has seven such yards. In such a scenario, when safe and environmentally sound recycling of ships is possible outside the OECD member countries whilst India and China have enough capacity, a logical question to ask is: are the Basel Convention, the Basel Ban Amendment and the European Waste Shipment Regulation still relevant?

The European Waste Shipment Regulation forces shipowners who want to export a ship from a E.U. port to sell their end-of-life ships for recycling only to Turkey (and to other OECD countries) despite the fact that same standards of recycling are now available in other countries where ship owners can get a better deal in economic sense.

Although the above mentioned regulations were not drafted for intended application to the shipping industry, they continue to be applied to bring the shipping industry under its purview. The main aim of these regulations was to safeguard the interests of the developing countries against the dumping of hazardous wastes as these countries weren’t equipped to deal with such wastes. However, now with the availability of yards in India equipped to recycle end-of-life ships in a way as safe and environmentally friendly as in yards in Turkey or elsewhere in the world, sending ships only to Turkey from the E.U. under the purview of European Waste Shipment Regulation sounds rather illogical. An important point to consider here is the fact that even in Turkey, only a few yards are HKC-compliant which effectively means it is difficult to ensure safe and environmentally friendly recycling even if a ship is transported to Turkey.

Another important point to support the idea of allowing ships and offshore structures from the E.U. to recycle in India on Hong Kong Convention-compliant yards is the fact that the recycling facilities in the E.U. do not have enough recycling capacity to dismantle large ocean-going vessels. Interestingly, some yards listed in the so-called E.U.-list that has been approved by the European Commission, weren’t even operational in the recent past. However, the list will soon be updated by the European Commission to add more capacity.

Moreover, the fact that the yards in E.U. and Turkey are in no position to offer more than the yards in India for buying end-of-life ships due to the strong downstream market for second-hand goods and re-rollable scrap is also critical. This not only makes economic sense for the shipowners, but it is also environmentally friendlier than melting steel scrap and discarding reusable goods as waste – a practice followed in the Turkish ship recycling industry for instance.

In conclusion, more than eight years after the Hong Kong Convention was adopted, several yards in India have voluntarily upgraded themselves to undertake safe and environmentally sound recycling of ships. Such developments have led to question the rationale behind the sendover of end-of-life ships and offshore structures from the E.U. just to Turkey under the purview of the European Waste Shipment Regulation.

Now is the time to review these regulations which do not augur well for the ship owner’s finances and sustainability in the shipping industry. Although the new European Regulation on Ship Recycling is due to replace the European Waste Shipment Regulation in 2018, there has not been a decision made on the future of the Basel Convention. One complication is that, in the E.U. after the full implementation of the new regulation, the European Waste Shipment Regulation will still apply to ships of non-EU flag departing from the E.U. for recycling.

Despite the fact that the European Regulation on Ship Recycling may approve yards from China and even India, the European Waste Shipment Regulation will still allow ships to be sent only to OECD countries. The extent of confusion and complexity in the existing regulations is such that requires immediate reviewing, to the best interest of the industry.

Source: maritime-executive. 20 February 2018

India’s huge ship-breaking industry is destroying its workers’ health


For the fifth year in a row, India is the top destination for ship-breaking or decommissioning ships. But there's a huge cost to workers and their families.

Alang-Sosiya is the largest ship-breaking yard in India, where on average between 30 percent to 40 percent of the world's ships are sent to be dismantled every year. The sprawling ship yard brings in nearly a billion dollars a year for India.

But the industry has been criticized as a form of "toxic colonialism" for taking a huge toll on the environment and exploiting unskilled workers. Decommissioned ships are rife with hazardous compounds like asbestos and diseases like tuberculosis.

"Water is the most important change. If the water is good, all is good. There will be less sickness," ship-breaker Sri Ram Yadav told VICE News. "After working for six months here, I thought my health was ruined."

https://video.vice.com/en_us/embed/5a90cf12f1cdb3177f55e2e1?ref=https%3A%2F%2Fnews.vice.com%2Fen_us%2Farticle%2Fqveav5%2Findias-huge-ship-breaking-industry-is-destroying-its-workers-health

Source: news vice. 04 March 2018

2 labourers die of suffocation


Rajkot: Two labourers were asphyxiated to death due to gas leakage in Alang ship-breaking yard in Bhavnagar district on Wednesday morning.Police identified the deceased as Balram Dhulia (40) and Ramnayan Rajbhar (42), natives of Madhya Pradesh.“The incident occurred at plot number 32 where the duo had gone into an empty tank of the ship that was anchored for breaking,” a fire brigade official said.Fire brigade officials took the duo’s bodies out and took them to Talaja Civil Hospital, where they were declared brought dead.

Source: nyoooz. 15 March 2018

Seatrade fined for export of ships for scrapping in substandard yards

MARCH 15, 2018 — Groningen, Netherlands, headquartered shipping company Seatrade has been fined for breaking the EU Waste Shipment Regulation by the illegal export of vessels sent for scrapping on the beaches of South Asia.

Newspaper FD reports that the penalties consist of fines ranging from EUR 50,000 to EUR 750,000 and two Seatrade directors have been banned from acting as director, commissioner, advisor or employee of a shipping company for one year. A third director was acquitted.

The newspaper says that the prosecution had asked for prison terms to be imposed but that the court rejected this as this was the first case of its kind

The NGO Shipbreaking Platform says that this is the first time, a European shipping company has been held criminally liable for having sold vessels for scrap to substandard shipbreaking yards in India and Bangladesh, where, according to the Prosecutor, "current ship dismantling methods endanger the lives and health of workers and pollute the environment.

NGO Shipbreaking platform says that the judgement sets a European-wide precedent for holding shipowners accountable for "knowingly selling vessels, via shady cash-buyers, for dirty and dangerous breaking in order to maximize profits.

"We strongly welcome the judgement of the Rotterdam Court. The ruling sends a clear-cut message that dirty and dangerous scrapping will no longer be tolerated," says Ingvild Jenssen, Founder and Director of the NGO Shipbreaking Platform.

Source: marine log. 15 March 2018

Former state ferry, in service for 50 years, leaves Alaska


A former state ferry has departed from Alaska after serving in the Alaska Marine Highway System since 1963.

The Taku left Ward Cove in southeast Alaska Tuesday morning and is headed for Singapore, the Ketchikan Daily News reported .

The Alaska Department of Transportation transferred ownership of the vessel to Jabal Al Lawz Trading Est., a Dubai-based company, in January.

It was sold for $171,000.

Some people gathered to say goodbye the vessel on Tuesday including Bill and Wynn Hopkin, who both worked aboard the Taku.

Bill Hopkins began working on the ship in 1977 and took on various roles during his time with the ferry system such as chief mate and captain.

He took some photos as the ship left and cried as he saw it getting farther away.

"It's inevitable — I understand that," he said. "It's just a piece of steel that floats, with an engine in it. A ship is a floating engine. But these ships, when you work them, you get a feel of them. They all have a different character. . In that sense, they're alive to us."

Wynn Hopkins agrees.

She worked on the ship as a U.S. Forest Service interpretive specialist in 1981. Her job was to inform passengers about southeast Alaska's cultural and natural resources, she said.

She considers the vessel an old friend.

"They have a real human quality," she said, referring to AMHS ferries.

The Taku was pulled out of the transportation system in 2015 due to budgetary concerns.

Since purchasing it in January, Jabal al Lawz Trading has been preparing the ferry for its trans-Pacific voyage.

The company is known for buying ships and scrapping them in India, but after spending time on the ship, co-owner Ben Evans thinks it could be sold to be repurposed as a superyacht, an ultra-luxurious yacht.

"So whoever bought it off us would be spending millions on it to upgrade the accommodations and the amenities," he said.

The trip to Singapore is expected to take about a month, he said.

If the vessel is not sold there, it will continue to India for scrapping.

Source: the sacramento bee14 March 2018

Seatrade convicted for trafficking toxic ships


NGOs welcome groundbreaking judgment


Brussels/Rotterdam, 15 March 2018 - Today, a Rotterdam District Court sentenced, on the basis of the EU Waste Shipment Regulation, shipping company Seatrade for the illegal export of vessels sent for scrapping on the beaches of South Asia. The Seatrade company has been heavily fined, and two of its executives have also been banned from exercising the profession as director, commissioner, advisor or employee of a shipping company for one year.

For the first time, a European shipping company has been held criminally liable for having sold vessels for scrap to substandard shipbreaking yards in India and Bangladesh, where, as widely acknowledged and according to the Prosecutor, “current ship dismantling methods endanger the lives and health of workers and pollute the environment”. The Prosecutor’s request that the Seatrade executives face prison was only waived in light of this being the first time such criminal charges had been pressed.

This groundbreaking judgement sets a European-wide precedent for holding ship owners accountable for knowingly selling vessels, via shady cash-buyers, for dirty and dangerous breaking in order to maximize profits.

“We strongly welcome the judgement of the Rotterdam Court. The ruling sends a clear-cut message that dirty and dangerous scrapping will no longer be tolerated”, says Ingvild Jenssen, Founder and Director of the NGO Shipbreaking Platform.

(© Studio Fasching - 2017)


CONTACT

Ingvild JENSSEN
NGO Shipbreaking Platform
Executive Director and Founder
Tel.: +32 (0)2 6094 419

Source: NGO shipbreaking platform.

Shipowners Face Risk of Criminal Liability for Illegal Demolition of End-of-Life Vessels


A Rotterdam court has found Dutch reefer operator Seatrade and two of its directors criminally liable last week for illegally selling vessels for demolition in South Asian yards in breach of the EU Waste Shipment Regulation.

The decision appears to be the first time an EU shipowner has been held criminally liable for the illegal export of vessels for demolition to South Asian yards.[1] The Dutch public prosecutor brought the cases against Seatrade over historic sales of vessels for demolition in India, Bangladesh and Turkey in 2012. The sales of the vessels took place via cash buyers. All vessels departed from Rotterdam and Hamburg on their last voyage to the South Asian yards.

Seatrade and its directors were fined up to 750,000 euros and the directors have been banned from working in the shipping industry for a year. The public prosecutor also sought prison sentences for the directors, but the court did not impose these.

The decision sets a precedent in the Netherlands. It makes it clear that shipowners who sell vessels for demolition in South Asian scrap yards in breach of the EU Waste Shipment Regulation risk facing criminal liability. It is the first successful prosecution of a shipowner for non-compliance with the EU Waste Shipment Regulation, which prohibits the export of hazardous waste to non-OECD countries, and bans the export of waste for disposal.

Importantly, the case reflects the political climate and the greater interest shown by European countries in environmental issues and may be followed by other European countries.  Cases of illegal demolition of vessels are currently being investigated by national authorities, such as the UK and Norway. In Norway for example, the vessel the MV “Tide Carrier” was arrested by the Norwegian environmental authorities, and these have been investigating its owners for illegally selling the vessel to a South Asian yard for demolition.

Shipowners should therefore take greater notice of the regulations when considering demolition.

International law and the demolition of end-of-life vessels
Any shipowner considering selling an end-of-life vessel for demolition should first consider whether the sale complies with the Basel Convention. An end-of-life vessel will likely be considered as “waste” under the Basel Convention, since waste is defined broadly to include ‘substances or objects which are disposed of or are intended to be disposed of or are required to be disposed of by the provisions of national law’. Therefore, a sale of a vessel for demolition is likely to be considered a ‘transboundary movement of waste’ under the Basel Convention.

Shipowners should be aware that if there is anything onboard the vessel that could be considered ‘hazardous’ waste under the Basel Convention or under the national laws of the destination country of the vessel being scrapped, the country of import and any countries of transit will need to be notified of the movement of waste. In addition, the countries of import and transit will need to give their consent for the movement of waste.

The Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships was adopted in 2009, but has still not been ratified by enough shipowning and scrapping countries so the Basel Convention remains  the main international regulation.While an increasing number of demolition yards have been obtaining certificates and statements of compliance with the Hong Kong Convention, shipowners should be mindful that the Hong Kong Convention is not yet in force.  There may be different certification providers and their standards of issuing the certification may not be entirely clear. Shipowners should therefore not decide on demolition yards solely based on a yard’s statement of compliance with the Hong Kong Convention.

EU rules and the demolition of end-of-life vessels
The Dutch case brought against Seatrade concerned the illegal sale of a vessel in breach of the EU Waste Shipment Regulation (the “Regulation”) that applies to ship demolition.

EU Shipowners with vessels trading in EU waters are advised to consider whether the sale of the end-of-life vessel for demolition complies with the Regulation. Importantly, the Regulation applies also to vessels of all flags that trade within EU waters – not just EU-flagged vessels.

Under the Regulation ship demolition of end-of-life vessels moving in EU waters is likely to be considered as ‘waste’, which is defined as ‘any substance or object which the holder discards or intends or is required to discard’. Shipowners should note that it is enough for an intention to discard the end-of-life vessel to arise for the vessel to be considered ‘waste’ under the Regulation.

If the intention to discard arises when the vessel is in EU waters, it is possible that the intention to scrap the vessel will make it ‘waste’ for the purposes of the Regulation. If the end-of-life vessel leaves an EU port destined for demolition in another country, the sale of the vessel is likely to be considered a shipment of waste; whether within the EU, exported from the EU to a third country, in transit through the EU to a third country, or imported into an EU state from a third country.

Shipowners should note that under the Regulation, the shipment of waste for disposal is prohibited from EU countries to non-EU, and non-OECD countries. The shipment of hazardous waste for recovery from the EU to non-EU and non-OECD countries is also prohibited.

There may be the possibility that the end-of-life vessel is a ‘green-listed’ vessel destined for recovery. If it is destined for recovery in an OECD country, it will be subject to the written notification and consent procedure under the Regulation. If the vessel is ‘green-listed’ waste destined for recovery to a non-OECD country, such as India, Pakistan or Bangladesh, it is important to check whether such countries have notified their position with the EU authorities as to the requirements of the import of such waste.

EU Shipowners with vessels trading in EU waters should therefore be aware that sales of vessels for demolition in a non-OECD country may be considered as shipment of waste for disposal, and therefore be prohibited by the Regulation. The decision of the Rotterdam court makes it clear that if a vessel is sold for demolition in a non-OECD country in breach of the Regulation criminal liability including fines and possible imprisonment for the directors making those decisions may follow.

Ship Recycling Regulation
While the Hong Kong Convention is not yet in force, the EU has adopted the “Ship Recycling Regulation”, which effectively implements the Hong Kong Convention.

The Ship Recycling Regulation is effective, but at the time of writing is not yet applicable. The Ship Recycling Regulation applies to vessels flying the flag of an EU Member State. Vessels flying the flag of an EU Member State may be recycled only in safe and sound ship recycling facilities included in the European List of ship recycling facilities, which currently contains 18 shipyards, all located within the EU. The EU has also seen applications from yards in India, Turkey, China and the US hoping to be approved and included on the European List.

Conclusion
Recent increased national investigations into sales of end-of-life vessels for demolition in South Asian yards, and in particular the retrospective criminal charges brought against Seatrade emphasise the need for shipowners to be extremely careful when selling ships for demolition. In addition, a voluntary alliance of banks in northern Europe and Scandinavia has been encouraging their shipowner clients to declare their policies on scrapping to encourage best practice of demolition of end-of-life vessels. Given banks’ reputational risks, this may become an even more important consideration in future financings for shipowners.It is advisable for shipowners to seek legal guidance on the laws applicable to their particular proposed sale before executing the same or face the consequences.

[1] Seatrade Convicted for Trafficking Toxic Ships, 15 March 2018, http://www.shipbreakingplatform.org/press-release-seatrade-convicted-for-trafficking-toxic-ships/

Source: jd supra. 22 March 2018

Gujarat high court notice over ship-breaking at Dandi coast:


AHMEDABAD: The Gujarat high court has issued notices to concerned state authorities and a ship-breaking firm for starting to dismantle a cargo vessel at Dandi shore in Valsad.

The 180-metre long cargo vessel MV Infinity washed ashore at Dandi coast in September 2016 after it was to supposed to be anchored at the Alang Ship-breaking Yard for recycling.

A PIL in the high court has taken exception to the ship-breaking activity at the Dandi coast without environment clearance and without following any labour laws. The petitioner submitted before the court that after the bulk carrier was anchored on Dandi coast, it was auctioned for recycling. One M/s Chaudhary & Sons bought the ship for dismantling and the recycling activities began also.

The petitioner contended that for breaking a ship, nod is necessary under environment laws and factory laws so that the surrounding environment does not get affected and the welfare of the workers is taken care of. Certain permissions are required under the Ship Breaking Code, 2013, which were not obtained before the ship-breaking began. Hence, ship-breaking activity without any environment clearance should not be permitted outside the ship-breaking yard.

Further hearing on the issue is posted on April 4.

Source: times of india. 22 March 2018

Shipowners face risk of criminal liability for illegal demolition of end-of-life vessels

A Rotterdam court has found Dutch reefer operator Seatrade and two of its directors criminally liable last week for illegally selling vessels for demolition in South Asian yards in breach of the EU Waste Shipment Regulation.

The decision appears to be the first time an EU shipowner has been held criminally liable for the illegal export of vessels for demolition to South Asian yards.[1] The Dutch public prosecutor brought the cases against Seatrade over historic sales of vessels for demolition in India, Bangladesh and Turkey in 2012. The sales of the vessels took place via cash buyers. All vessels departed from Rotterdam and Hamburg on their last voyage to the South Asian yards.

Seatrade and its directors were fined up to 750,000 euros and the directors have been banned from working in the shipping industry for a year. The public prosecutor also sought prison sentences for the directors, but the court did not impose these.

The decision sets a precedent in the Netherlands. It makes it clear that shipowners who sell vessels for demolition in South Asian scrap yards in breach of the EU Waste Shipment Regulation risk facing criminal liability. It is the first successful prosecution of a shipowner for non-compliance with the EU Waste Shipment Regulation, which prohibits the export of hazardous waste to non-OECD countries, and bans the export of waste for disposal.

Importantly, the case reflects the political climate and the greater interest shown by European countries in environmental issues and may be followed by other European countries.  Cases of illegal demolition of vessels are currently being investigated by national authorities, such as the UK and Norway. In Norway for example, the vessel the MV “Tide Carrier” was arrested by the Norwegian environmental authorities, and these have been investigating its owners for illegally selling the vessel to a South Asian yard for demolition.

Shipowners should therefore take greater notice of the regulations when considering demolition.

International law and the demolition of end-of-life vessels
Any shipowner considering selling an end-of-life vessel for demolition should first consider whether the sale complies with the Basel Convention. An end-of-life vessel will likely be considered as “waste” under the Basel Convention, since waste is defined broadly to include ‘substances or objects which are disposed of or are intended to be disposed of or are required to be disposed of by the provisions of national law’. Therefore, a sale of a vessel for demolition is likely to be considered a ‘transboundary movement of waste’ under the Basel Convention.

Shipowners should be aware that if there is anything onboard the vessel that could be considered ‘hazardous’ waste under the Basel Convention or under the national laws of the destination country of the vessel being scrapped, the country of import and any countries of transit will need to be notified of the movement of waste. In addition, the countries of import and transit will need to give their consent for the movement of waste.

The Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships was adopted in 2009, but has still not been ratified by enough shipowning and scrapping countries so the Basel Convention remains  the main international regulation.While an increasing number of demolition yards have been obtaining certificates and statements of compliance with the Hong Kong Convention, shipowners should be mindful that the Hong Kong Convention is not yet in force.  There may be different certification providers and their standards of issuing the certification may not be entirely clear. Shipowners should therefore not decide on demolition yards solely based on a yard’s statement of compliance with the Hong Kong Convention.

EU rules and the demolition of end-of-life vessels
The Dutch case brought against Seatrade concerned the illegal sale of a vessel in breach of the EU Waste Shipment Regulation (the “Regulation”) that applies to ship demolition.

EU Shipowners with vessels trading in EU waters are advised to consider whether the sale of the end-of-life vessel for demolition complies with the Regulation. Importantly, the Regulation applies also to vessels of all flags that trade within EU waters – not just EU-flagged vessels.

Under the Regulation ship demolition of end-of-life vessels moving in EU waters is likely to be considered as ‘waste’, which is defined as ‘any substance or object which the holder discards or intends or is required to discard’. Shipowners should note that it is enough for an intention to discard the end-of-life vessel to arise for the vessel to be considered ‘waste’ under the Regulation.

If the intention to discard arises when the vessel is in EU waters, it is possible that the intention to scrap the vessel will make it ‘waste’ for the purposes of the Regulation. If the end-of-life vessel leaves an EU port destined for demolition in another country, the sale of the vessel is likely to be considered a shipment of waste; whether within the EU, exported from the EU to a third country, in transit through the EU to a third country, or imported into an EU state from a third country.

Shipowners should note that under the Regulation, the shipment of waste for disposal is prohibited from EU countries to non-EU, and non-OECD countries. The shipment of hazardous waste for recovery from the EU to non-EU and non-OECD countries is also prohibited.

There may be the possibility that the end-of-life vessel is a ‘green-listed’ vessel destined for recovery. If it is destined for recovery in an OECD country, it will be subject to the written notification and consent procedure under the Regulation. If the vessel is ‘green-listed’ waste destined for recovery to a non-OECD country, such as India, Pakistan or Bangladesh, it is important to check whether such countries have notified their position with the EU authorities as to the requirements of the import of such waste.

EU Shipowners with vessels trading in EU waters should therefore be aware that sales of vessels for demolition in a non-OECD country may be considered as shipment of waste for disposal, and therefore be prohibited by the Regulation. The decision of the Rotterdam court makes it clear that if a vessel is sold for demolition in a non-OECD country in breach of the Regulation criminal liability including fines and possible imprisonment for the directors making those decisions may follow.

Ship Recycling Regulation
While the Hong Kong Convention is not yet in force, the EU has adopted the “Ship Recycling Regulation”, which effectively implements the Hong Kong Convention.

The Ship Recycling Regulation is effective, but at the time of writing is not yet applicable. The Ship Recycling Regulation applies to vessels flying the flag of an EU Member State. Vessels flying the flag of an EU Member State may be recycled only in safe and sound ship recycling facilities included in the European List of ship recycling facilities, which currently contains 18 shipyards, all located within the EU. The EU has also seen applications from yards in India, Turkey, China and the US hoping to be approved and included on the European List.

Conclusion
Recent increased national investigations into sales of end-of-life vessels for demolition in South Asian yards, and in particular the retrospective criminal charges brought against Seatrade emphasise the need for shipowners to be extremely careful when selling ships for demolition. In addition, a voluntary alliance of banks in northern Europe and Scandinavia has been encouraging their shipowner clients to declare their policies on scrapping to encourage best practice of demolition of end-of-life vessels. Given banks’ reputational risks, this may become an even more important consideration in future financings for shipowners.It is advisable for shipowners to seek legal guidance on the laws applicable to their particular proposed sale before executing the same or face the consequences.

[1] Seatrade Convicted for Trafficking Toxic Ships, 15 March 2018, http://www.shipbreakingplatform.org/press-release-seatrade-convicted-for-trafficking-toxic-ships/

Source: ship law log. 22 March 2018
https://www.shiplawlog.com/2018/03/22/shipowners-face-risk-of-criminal-liability-for-illegal-demolition-of-end-of-life-vessels/?utm_source=Mondaq&utm_medium=syndication&utm_campaign=View-Original

19 March 2018

Seatrade faces criminal charges for illegal scrapping of ship:


The Netherlands-based shipowner Seatrade has faced criminal charges from a local public prosecutor as part of a case alleging that the company has been engaging in illegal scrapping practices.

Seatrade has allegedly sold vessels to scrap yards in countries that undertake ship breaking practices that endanger the lives and health of workers, as well as pollute the environment.

After hearing the case, a Rotterdam Court has imposed a fine of €2.35m and ordered the confiscation of profits made by Seatrade on the illegal sale of four ships, including Spring Bear, Spring Bob, Spring Panda and Spring Deli.

Three of Seatrade’s top executives could also face a six-month prison sentence.

According to NGO Shipbreaking Platform, Spring Bear and Spring Bob were sold to Indian and Bangladeshi breakers respectively.

Seatrade also sold the Spring Panda and Spring Deli vessels in Turkey without following the international laws governing the export of hazardous waste or the European Union (EU) Waste Shipment Regulation, among other regulations, the Shipbreaking Platform alleges.

All four vessels made their last voyage to the breaking yards from the ports of Rotterdam in the Netherlands and Germany’s Hamburg in 2012.

NGO Shipbreaking Platform founder and director Ingvild Jenssen said: “Despite ongoing criminal investigations, Seatrade sold two more ships, the Sina and Ellan, for dirty and dangerous breaking on the beach in Alang, India, in August 2017.

“This case adds itself to the growing demand, including from investors and major shipping banks, for better ship-recycling practices.”

In addition, authorities in Norway, Belgium, and the UK are investigating similar cases of illegal ship breaking practices involving companies such as Maersk and CMB, as well as GMS and Wirana.

Source: ship-technology. 15 February 2018

New law for ship-breaking industry:


The piece of legislation that the Jatiya Sangsad late last week adopted to discipline the country's ship-breaking industry has been long overdue. Notwithstanding its importance in the economy and the risks that it poses, when unregulated, to the environment, the governmental efforts were too scanty for streamlining the ship recycling industry that has flourished along the coastline of Chittagong since early 1980s. The industry that now employs hundreds of workers and makes available more than half of the basic raw materials to the re-rolling mills, is one of the largest in the world.

However, the industry did not originate locally and grow spontaneously. When the cost of ship-breaking had gone abnormally high in the developed countries, ship owners chose the developing countries like China, Vietnam, the Philippines and Bangladesh to scrap their vessels because of low cost of labour and lack of concern about environment and safety issues in these countries. In Bangladesh, the local entrepreneurs took the advantage of the situation. They started importing increasing number of old vessels for dismantling along the coastline. However, the relevant agencies, from time to time, issued a few rules to help contain environmental damage and ensure safety requirements. But the enforcement of such rules, whatever these were, was very lax.

Almost everything recovered from the scrapping of a ship, including hull, engine, machinery, generators, furniture, etc., is recycled and reused in Bangladesh. But the very method used in scrapping of ships, lack of concern among the ship-breakers about the safety of poor workers and disposal of environmentally hazardous goods and chemicals turned out to be serious problems. Questions started pouring in from different directions about environmental and safety issues. But such concerns had largely fallen on deaf ears of the relevant authorities. Thus, all the pleadings for taking appropriate measures to control the harmful activities were virtually ignored. Under such circumstances, the industry continued to expand and the steel manufacturing units, dependent on scrapped metal, witnessed an unabated growth.

But environmental degradation apart, what emerged as the most serious concern, is the physical safety of workers engaged in dismantling of scrapped vessels. Hundreds of workers have died so far and a few thousand more received serious injuries in accidents in ship-breaking yards. The law passed by the parliament on ship-breaking contains certain provisions to mete out punishment to individuals/organizations that violate its provisions. The issue of workers' safety has also been taken care of. The operators in the industry will now have to extend life insurance coverage to each and every worker. More importantly, the law provides for establishment of a separate zone for the ship-breaking industry that has been growing haphazardly along the coastline in different shipyards.

The ship-breaking industry has been fetching a handsome amount of revenues for the government. So, the industry deserves fair treatment in all matters. But what should get top-most priority is the country's environmental interests and workers' safety and security. The industries ministry has fulfilled the first requirement by adopting the law in question. But equally important will be its proper enforcement. Hopefully, the government will not fail on this account.

Source: the financial express. 29 January 2017