European ship owners top the list of global
dumpers: The EU must do more to reverse this scandal
Brussels, 1 February 2017 - The list of all
ships dismantled around the world in 2016, which the NGO Shipbreaking Platform
has compiled and analysed, shows no improvements of the shipping industry’s
management of its end-of-life vessels. Far from it: the Platform today releases
data that indicate an increase in the number of ships sold for polluting and
unsafe shipbreaking on the beaches of South Asia. In 2016, a total of 668
vessels were broken on tidal beaches, that is as much as 87% of all tonnage
dismantled globally.
“The shipping industry is nowhere close to
ensuring sustainable ship recycling practices. Last year, we saw not only an
increase in the market share for dangerous and dirty shipbreaking, but also a
record-breaking number of EU-owned vessels on the South Asian beaches. A
jaw-dropping 84% of all European end-of-life ships ended up in either India,
Pakistan or Bangladesh. Beaching yards are not only well known for their
failure to respect international environmental protection standards, but also
for their disrespect of fundamental labour rights and international waste trade
law,” says Patrizia Heidegger, Executive Director of the Platform.
A higher number of ships beached means that
workers, the environment and local communities in South Asia are exposed to
ever increased hardship. 2016 saw the worst catastrophe in the history of the
industry: on 1 November, at least 28 workers were killed instantly and more
than 50 injured when an explosion and a massive fire shook a tanker beached in
Gadani, Pakistan. The death toll in the Bangladeshi yards, which the Platform
was able to document, reached 22 in 2016, with another 29 workers having
suffered serious injuries. Whilst accident records in Indian shipbreaking yards
are kept a secret, the Platform was informed of at least two fatal deaths in
Alang.
DUMPERS 2016 - Worst practices
It may seem a big surprise for a country
whose industry is proud of green technology and engineering solutions, but GERMANY
is responsible for the worst shipbreaking practices amongst all shipping
nations when one compares the size of its fleet to the number of ships broken
irresponsibly. German owners, banks and ship funds had a staggering 98 ships
rammed up on the beaches of South Asia out of a total of 100 vessels sold for
demolition: 98% of all obsolete German ships ended up on a beach! That not
being enough, close to 40% were broken in Bangladesh, where conditions are
known to be the worst. Amongst the most irresponsible owners are Hansa Mare
with 12 ships, Alpha Ship, F. Laeisz and Peter Doehle with 7 each, and Dr.
Peters, König & Cie, Norddeutsche Vermögen and Rickmers with 6 each. Even
Dr Oetker, a famous food brand, shamefully sold its old container ship CAP STEWARD
to the Bangladesh breakers.
The German shipbreaking practices come with a
high death toll. During the breaking period of the RENATE N. at Seiko
shipbreaking in Chittagong, Bangladesh, three workers were killed and three
more injured (see “Accidents” in the Platform’s South Asia Quarterly Update).
The vessel owned by Neu Seeschifffahrt had been traded through cash buyer
Wirana. Even the UN Special Rapporteur on Toxics and Human Rights expressed
serious concerns in a submission to the German Government, criticizing the
substandard practices of German owners. In November, another Bangladeshi worker
was killed during the demolition of the only 10 year-old, loss-making container
ship VIKOTRIA WULFF.
“It is not the first time that shipbreaking
workers pay with their lives for the failed business practices of German ship
owners and their ship funds. Due to numerous bankruptcies resulting from
short-sighted and high-risk investment, insolvency administrators appointed by
the courts quickly trade the unprofitable ships to the beaches of South Asia,
and the bill for the shipping industry’s greed is paid by people and the
environment”, comments Patrizia Heidegger.
GREECE was responsible for the highest
absolute number of ships sold to South Asian shipbreaking yards in 2016: 104
ships in total. Since the Platform has started to compile data in 2009, Greek
shipping companies have unceasingly topped the list of owners that opt for
dirty and dangerous shipbreaking. Backed by the Greek government, they continue
to refuse liability for the damage done to workers and the environment. A Greek
ship beached in Pakistan in December 2016 caused the death of five workers in
January when a fire broke out on the GAZ FOUNTAIN owned by Athens-based
Naftomar.
The worst corporate dumper prize goes to the
UK-based ZODIAC. The company is operated out of London and owned by Eyal Ofer,
son of late shipping magnate Sammy Ofer. Zodiac alone has sold 12 ships for
breaking on the beaches in 2016, mostly to Bangladesh, and the company has been
linked to severe accidents. During the demolition of Ofer’s ship SNOWDON,
beached in Pakistan in October, a worker was killed in January this year.
Eyal’s brother Idan, owner of the QUANTUM PACIFIC GROUP and holder of a
controlling stake in the ISRAEL CORPORATION, received the worst dumper award in
2015 for selling most of his end-of-life vessels to Bangladesh breakers – a
more than dubious practice for a family that wants to be known for its
philanthropy.
“It is scandalous that the burden to deal
with Europe’s profit-greedy shipbuilding boom is shifted to communities and
workers in South Asia: first the shipping industry creates a large overcapacity
on the market, and then it fails to find responsible solutions for its obsolete
ships,” says Heidegger. In 2016, also Maersk decided to take a U-turn on its
previously progressive ship recycling policy: the Danish container ship giant
decided to go back to the shipbreaking beaches of India where it is offered higher
prices for its unwanted ships. Being one of the catalysts of the overcapacity
on the shipping market itself, Maersk has to get rid of 75 – 100 ships in the
coming years. “This move to boost profits does not only help to rubberstamp the
beaching method, but, very regrettably, it is also stalling real progress and
innovation in India to move ship recycling to the next level – off the beach –
to modern ship recycling facilities,” says Heidegger.
The data compiled by the Platform also show
that ship owners continue to shield themselves from responsibility through the
use of cash buyers such as GMS and Wirana. These scrap dealers reflag
end-of-life vessels to last-voyage flags of convenience, such as Palau, Comoros
and St Kitts and Nevis, and sell them off for the highest price offered by the
worst yards. “Looking at the flags used at end-of-life, it is clear that
legislation based on flag state jurisdiction will not be able to bring
substantial change to the current practices: who believes that a non-compliant
flag and a cash buyer benefitting from the worst conditions will enforce
improvements in shipbreaking yards?,” says Ingvild Jenssen, Policy Director and
founder of the Platform. “The global shipbreaking crisis can only be solved
through measures that go beyond flag state jurisdiction. That is why we call on
the EU to demand a ship recycling licence from all vessels visiting EU ports.”
In 2017, the EU will publish a list of ship
recycling facilities around the world that comply with high standards for environmental
protection and workers’ safety. The list will be the first of its kind and an
important reference point for sustainable ship recycling. German container line
Hapag-Lloyd has already committed its end-of-life ships off the beach, and has
announced that it will only use EU listed facilities. A financial incentive
affecting ships trading with the EU is however needed to ensure that
irresponsible ship owners are directed towards the facilities listed as
approved by the EU. A proposed Ship Recycling Licence scheme is now being
discussed. The many scandals involving European shipping companies are also a
driver behind the strong interest that various financial institutions have
started to show in ship recycling: to ensure responsible business practices
some are now setting criteria for shipping companies they finance while looking
at the EU Ship Recycling Regulation for guidance.
Source:
ship
breaking platform. 01 February 2017
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