06 February 2015

South Asia's ship recyclers unite in face of possible EU beaching ban:

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The inaugural meeting of the Federation of Ship Recycling Associations (FSRA), a collective of the ship recycling associations of India, Pakistan and Bangladesh will take place at the TradeWinds Ship Recycling Forum in Singapore on 10-11th March.

Although traditionally competitors, the group is coming together in the face of a possible ban on EU flag vessels being sent to South Asia for demolition.

Representatives of the European Commission presented their position to attendees during a private meeting of ship recycling stakeholders organised by the European Community Shipowners’ Association (ECSA) recently to discuss the interpretation of the new European Regulation (ER).

According to insiders, Emilien Gasc of the EC Directorate-General for Environment was pressed to clarify the EC position but declined to concede that the wording of the ER implied an outright ban on beaching despite apparently unambiguous references to approved recycling yards requiring ‘built structures’ and ‘impermeable flooring’.

A more clear-cut position was taken by Greece’s permanent representative to the EU, Petros Varelidis, who had been instrumental in drafting the regulation wording. He argued that the ER does not ban beaching and that its purpose is to support the IMO's Hong Kong Convention and stimulate improvements in safety and environmental practices in South Asian yards.

Delegates at TradeWinds Ship Recycling Forum 2015 in Singapore will be looking for clarity on the topic from a keynote presentation by EC Director for Green Economy, Kęstutis Sadauskas.

Shiprecyclers from India, Pakistan and Bangladesh are now wondering whether current and planned investments to improve their facilities will ever pay dividends now that winning a place on the EU-approved list of recycling facilities appears remote.

Speaking about the FRSA gathering in Singapore, Ship Recycling Industries Association India (SRIA India) Hon. Secretary, Nitin Kanakiya said, “The FSRA was initially conceived in 2010 and has informally played important role in uniting recyclers from India, Pakistan and Bangladesh. We feel that now is the time to come together on a more formal basis in the face of persistent and unjust treatment by pressure groups and officials at the European Commission.”

He added, “The FSRA will be represented in full strength at the TradeWinds Forum by recyclers from India, Pakistan and Bangladesh, Singapore offering easy access to all three countries. Our focus this year will be on the common issues which unite us in protest against the potential ban on beaching.”

Forum organiser Jon Chaplin commented, ‘Ship recyclers from South Asia have supported the Forum since its inception in 2009 and we are excited to see this initiative developing.’

Underlining the importance of the Forum to the industry, principal sponsor Rakesh 'Billu' Khetan, CEO of WIRANA SHIPPING is on record saying, "This is the premier ship recycling event globally and it plays a pivotal role in shaping the future of the entire ship recycling industry and is not to be missed. We are delighted to be supporting the Forum once again and look forward to welcoming everyone to Singapore."

The TradeWinds Ship Recycling Forum is an annual event and sponsored by WIRANA SHIPPING, Class NK, Al Salam Insurance, St Kitts & Nevis, Lucion Marine, the International Hazmat Association and Wilhelmsen Ship Management. It has the official support of VDR German Shipowners’ Association, Norges Rederiforbund Norwegian Shipowners’ Association and the Asian Shipowners’ Forum. The event is supported locally by Singapore’s MPA backed MCF Training Grant.

Source: My News Desk. 03 February 2015

02 February 2015

More than 70 percent of the world’s obsolete tonnage ends up polluting the Indian sub-continent and putting workers’ life at risk:

The NGO Shipbreaking Platform, a global coalition of environmental and human rights organisations seeking to prevent dirty and dangerous shipbreaking worldwide, today releases a complete list of all ship owners and their ships sold for breaking last year. Out of a total of 1026 ships dismantled globally in 2014, 641 – representing 74% of the total gross tonnage (GT) scrapped – were sold to substandard facilities in India, Pakistan and Bangladesh where ships are dismantled directly on tidal beaches . None of the South Asian yards comply with international standards for safe and environmentally sound ship recycling .

End-of-life ships contain toxic materials such as asbestos, heavy metals, PCBs, oil residues and organic waste within their structures – these pollutants can not be contained or safely removed on a tidal beach. The demolition of the largest movable man-made structures is hazardous and must be conducted in a controlled manner using adequate infrastructure such as cranes as well as necessary health and safety provisions – in 2014 the Platform reported 23 deaths and 66 severe injuries due to accidents such as explosions, workers crushed under steel plates and falling from heights on the South Asian beaches.

“South Asia is still the preferred dumping ground for most ship owners as environmental, safety and labour rights standards are poorly enforced there,” said Patrizia Heidegger, Executive Director of the NGO Shipbreaking Platform. “Ship owners sell their ships to the beaching yards for considerably greater profit than the price they could obtain by cooperating with modern ship recycling facilities. It is shameful for the shipping industry that so many ship owners choose to close their eyes to the realities on-the-ground in South Asia and do not to face up to their responsibility and demand clean, safe and just ship recycling.”

German ship owner Ernst Komrowski tops the list of the worst global dumpers with 14 end-of-life vessels sold to the beaches – all of these were formerly part of the Maersk fleet and had been on a long-term charter with the Danish container ship giant, which oppositely to Komrowski has a strict ship recycling policy for its own vessels. Second ranks South Korea’s largest container ship owner Hanjin Shipping with 11 ships. Being based in a leading ship building country and with a strong environmental profile, Hanjin should also be aware of issues related to safe and clean recycling, still, they chose profit over people and the environment. Third ranks repeat offender Swiss-based Mediterranean Shipping Company (MSC) – the second largest container ship operator in the world whose shipbreaking activities in India have already cost the life of six workers in 2009 when a fire broke out on the MSC Jessica. Despite recurrent public criticism of MSC’s deplorable management of their end-of-life fleet, MSC has not developed a ship recycling policy that can prevent such tragic accidents. Hanjin and MSC’s bad practice stands in sharp contrast to that of their competitors Maersk and Hapag-Lloyd, two leading containership companies that have committed themselves to the recycling of their end-of-life vessels in modern facilities off the beach. Number four amongst the worst dumpers is Petrobras with six end-of-life vessels sold to South Asia: the Brazilian oil giant is the largest company of the Southern Hemisphere, but in contrast to other major oil and gas companies unwilling to recycle its old tankers properly.

Komrowski, Hanjin, MSC and Petrobras are followed by a range of companies which have all sold five end-of-life vessels to the beaches, amongst them well-know dumpers such as Conti, one of the largest German ship owners offering private investment in ships, G-Bulk and Danaos from Greece and Ignazio Messina from Italy. Also American TBS International, Singapore-based Pacific International and Taiwanese owner Yang Ming each sold five ships to the beaches in South Asia.

In 2014, the Platform investigated upon which vessels accidents have occurred and informed the owners, who had unscrupulously sold these ships to a substandard yard, about the deaths and severe injuries. Whilst most of these owners, including German Johann M.K. Blumenthal and Singapore-based Neptune Orient Lines (NOL) have ignored the Platform and seemingly feel no responsibility, Norwegian Teekay expressed gratitude for having been made aware of an explosion on one of their beached tankers in Bangladesh and committed to setting much higher standards when choosing future end-of-life destinations.

“It is time for the global leaders in shipping to commit to clean and safe ship recycling,” says Patrizia Heidegger. “Every single ship owner can do something: instead of selling to intermediaries and losing leverage on the fate of their vessel, ship owners can talk to ship recycling experts and negotiate directly with modern ship recycling facilities. Teekay and Hapag-Lloyd’s decision last year to adopt responsible ship recycling policies shows that ship owners can make alternative choices”, says Heidegger.

The Platform advises ship owners on what they can do to ensure sustainable end-of-life policies for their fleet and currently counts 13 major ship owners which practice clean and safe ship recycling in modern facilities off the beach.

The European Union has a particular responsibility to act – 34% of the gross tonnage broken in South Asia last year was European. Amongst the ships dismantled in 2014, 285 were either owned by a European company or flying the flag of an EU Member State. Two thirds of these European ships – 182 ships, including many having primarily operated in European waters – were beached. Whilst large European shipping nations such as Greece and Germany unsurprisingly top the list of 2014 worst dumping countries, selling respectively 70 and 41 large oceangoing vessels to South Asian breakers, they also top the list of ship-owning countries which sell almost exclusively to South Asian breakers, rather than to modern recyclers. Cyprus owners sold a record high 92% of their old ships to substandard yards in South Asia, German owners as much as 87% and Greek owners 76%. Comparatively, Chinese owners, including those based in Hong Kong, only sold 39% of their end-of-life vessels to beaching facilities in South Asia. China is the only major shipping nation in the world building up domestic capacity and working towards self-sufficiency in the management of its end-of-life fleet.

Despite the new EU Ship Recycling Regulation, which entered into force on 30 December 2013 and which out-rules the use of the beaching method to dismantle EU-flagged vessels, 41 ships registered under the flags of EU Member states Malta, Italy, Cyprus, UK and Greece hit the beaches in 2014. 15 additional ships changed their flag from an EU to a non-EU flag just weeks before reaching South Asia. As in previous years, particular flags of convenience such as Saint Kitts and Nevis (64 ships), Comoros (39 ships), Tuvalu (24 ships), Tanzania (20 ships) and Togo (20 ships) that are less favoured during operational use, were excessively popular flags for the end-of-life ships broken in South Asia. Any attempt to regulate ship recycling based only on flag state responsibility will have little impact due to the extensive use of non-compliant flags. Unless an economic incentive is added to the EU’s Ship Recycling Regulation, the registration of EU ships under flags of convenience such as Saint Kitts and Nevis, Tuvalu and Comoros is likely to increase, and will allow ship owners to sail around the law once it enters into force, and to continue dumping their ships in substandard facilities.

Source: Hellenic shipping news. 28 January 2015

NGO Shipbreaking highlights ship beachers

German, Korean and Swiss shipowners top the list of those sending their ships to South Asian beaches for recycling in a study by presure group NGO Shipbreaking in 2014.

According to NGO Shipbreaking Platform's annual list of demolished ships, 1,026 ships are said to have been dismantled in 2014, with 641 ending up in what it says are substandard facilities on the beaches of South Asia.

In 2014, 23 deaths and 66 severe injuries were reported on South Asian beaches as the result of explosions, crushing and falls from height while dismantling ships.

Ernst Komrowski, a German shipowner, sold the most ships to the beaches in 2014. All 14 of the vessels it scrapped were previously in the Maersk fleet or chartered to Maersk.

The second-highest number of ships beached was from South Korea's Hanjin Shipping. The report highlighted South Korea's prominence as a shipbuilder and its strong environmental profile, Hanjin sent 11 ships to meet their end on South Asian beaches.

Third place Mediterranean Shipping Company sent seven ships to the beaches, even though it had suffered the death of six workers in 2009 when a fire broke out on the MSC Jessica as it was being dismantled in India.

European ships accounted for 285 of the total ships scrapped worldwide, with1 82 of those making their way to beaching facilities that lack any compliance with international standards for ship recycling. The New EU Ship Recycling Regulation came into force at the end of 2013, but has either been ignored or ships have re-flagged to non-EU flags ahead of beaching to dodge jurisdiction.

The use of tidal beaches means that pollutants cannot be contained, and the use of heavy lift machinery is impossible, putting both worker's lives and the environment at significant risk. China was identified by NGO Shipbreaking as the only major shipping nation building up capacity to recycle its end-of-life fleet. 163 ships were recycled in China, with 93 of those vessels under the Chinese flag.

Source: seatrade-global. 26 January 2015

Harvey Gulf to outsource IHM documentation management

Harvey Gulf to outsource IHM documentation management

JANUARY 26, 2015 — Harvey Gulf International Marine, LLC, New Orleans, LA, and and Metizoft AS, FosnavÃ¥g, Norway, have signed a framework agreement on maintenance and quality assurance of vessel Inventory of Hazardous Materials (IHM) documentation.

IMO Guidelines - Ship Recycling; MEPC 197 (62) requirements call for ships to have on board an inventory of hazardous materials (IHM) contained in the ship's structure or fittings, together with details of their location and quantities. More and more countries have ratified or are at least getting closer to ratifying the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, which makes the requirements for IHM mandatory.

The IHM, essentially is the documentation required for classification society "Green Passport" notations.

"A lot has happened in a short time, and this future requirement  will include all of the world's seagoing vessels above 500 tons deadweight at an earlier stage than some anticipated," , says Metizoft's Chief Marketing Officer Øyvind Sundgot. "The European Union formally adopted the requirement on December 30, 2013, with some adjustments based on IMO - Hong Kong Convention. The new EU Ship Recycling Regulation means that EU-flagged vessels of 500 GT and over will be required to carry an Inventory of Hazardous Materials (IHM). When calling at EU ports, vessels from non-EU countries will also be required to carry an IHM identifying all hazardous materials on board. This means that the maintenance and quality assurance of the documentation is strengthened and it will therefore be very important for owners to have control of this."

"This agreement is one of several benefits of Harvey Gulf's focus on Health, Safety and Environment, which also form the basis for system solutions to the company's vessels," says Corby Autin, Harvey Gulf's Executive Vice President of QHSSE / HR. "The agreement initially includes 10 vessels in operation, and future newbuildings will be subject to continuous maintenance and quality assurance of documentation at Metizoft.

""Through the agreement with Metizoft," says Mr. Autin, "IHM documentation is maintained according to the current regulations and Metizoft is helping to ensure that we comply with the requirements at all times."

Source: marine log. 26 January 2015
http://www.marinelog.com/index.php?option=com_k2&view=item&id=8632:harvey-gulf-to-outsource-ihm-documentation-management&Itemid=230

01 February 2015

GMS weekly report on China ship breaking industry for WEEK 4th 2015

With levels stranded in the low USD 200s/LT LDT, it was no surprise to see no new vessels committed into the Chinese market for another week.

It will remain a quiet year on this front as the government subsidies that are artificially keeping prices low, are set to run until the end of 2015.

State owners with Chinese flagged tonnage will continue to sell their older vessels for sale within China and this will keep yards busy (on the scrapping as well as new building front) whilst ensuring Sellers receive the generous subsidy for recycling their units within China.

Source: steel guru. 29 Jan 2015