NGO Shipbreaking Platform: 446 Ships Sold for Scrap in 2023

According to new data released today by the NGO Shipbreaking Platform, 446 ocean-going commercial ships and offshore units were scrapped in 2023. The vast majority, 325 ships in total, were taken apart on a beach in Bangladesh, India or Pakistan. Most vessels scrapped originally belonged to shipping companies in East Asia and Europe.

“There is no possibility to take apart a ship on a beach in a way that is environmentally sustainable and safe for workers,”says Ingvild Jenssen, Executive Director of the NGO Shipbreaking Platform. “Shipping companies are dodging their responsibility to make sure their toxic waste does not harm workers’ health and sensitive coastal environments,” she adds.

In South Asia, workers are exposed to explosions, falling steel plates and toxic fumes and substances that can be found within the ships’ structures. Toxic waste leaks into the ocean and affects marine life, while also making its way into ground water and agricultural fields. The air is polluted far beyond internationally accepted levels, also as a result of the low-cost method used in the region to re-roll contaminated ship scrap steel.

In 2023, at least 6 workers lost their lives when breaking apart vessels on the beach of Chattogram, Bangladesh, and another 19 were severely injured. Some of these accidents took place onboard vessels owned by well-known shipping companies, such as Greek Polys Haji-Ioannou Group.

“It is expected that many accidents go unreported due to lack of transparency. There is furthermore no official monitoring and recording of occupational diseases, including cancer, of which many more workers suffer,” says Sara Costa, Project Officer at the NGO Shipbreaking Platform.

DUMPERS 2023 – Worst practices
China tops the list of country dumper in 2023. Despite the existence of state-of-the-art ship recycling facilities at national level, Chinese owners sold 71 vessels for scrapping in South Asia, 59 of which were beached in Bangladesh. While China has banned the import of waste as part of its efforts to clean its own environment and improve the quality of life of its citizens, the Chinese shipping industry is getting away with dumping its toxic waste on some of the most vulnerable communities and environments in the world.

Hong Kong, UAE, Thailand, Greece, Russia and South Korea follow as worst dumpers in 2023 with more than a dozen ships beached each.

Swiss containership giant Mediterranean Shipping Company (MSC) is the 2023 worst corporate dumper. Despite having been repeatedly and strongly criticised for its dumping of more than one hundred ships in the last decade, MSC scrapped no less than 14 of its old container ships in Alang, India, in 2023. The MSC FLORIANA and MSC GIOVANNA respectively left from Spanish and Turkish waters for scrap in clear breach of European and international law that bans the export of hazardous waste from OECD to non-OECD countries. Illegal exports of end-of-life ships is a criminal offence.

“It is beyond shameful for a company that makes billions of yearly profit to knowingly persist exploiting workers while turning a blind eye to the environmental degradation caused by beaching,” denounces Nicola Mulinaris, Senior Communication and Policy Advisor of the NGO Shipbreaking Platform. “Ironically, MSC recently committed to prevent known illegal exporters of waste use their ships to facilitate illegal waste trade. We call on MSC to make the same commitment with regards to their own toxic waste,” Mulinaris adds.

Evergreen, Gearbulk, Green Reefers, Maersk, Sinokor and Zodiac Group Monaco are other well-known companies that sold their toxic assets for scrapping on South Asian beaches in 2023.

Conditions at the ship recycling yards in Aliaga, Turkey, have also come under the spotlight in a new report. Pollution and poor occupational health and safety conditions occur at all stages of the ship recycling process, including the management of waste water and disposal of the hazardous materials originating from ships. Recent audits and unannounced inspections of the facilities by the European Commission furthermore revealed that actual day-to-day practices do not comply with the standard required for EU approval.

“While regulatory gaps need to be closed in Turkey to ensure proper permitting and monitoring of the sector, the European Union can play an important role by sustaining unannounced inspections and reviewing their standard for ship recycling to include clear requirements for waste management and the use of safer and cleaner technologies, such as cold cutting and dry docks,” says Ekin Sakin, Policy Officer at the NGO Shipbreaking Platform.

Environmental and labour laws that regulate ship recycling exist, but they are ignored and easily circumvented by ship owners. In a report on the conditions at the shipbreaking yards in Bangladesh, it is revealed how middle men scrap dealers, known as cash buyers, re-name, re-register and re-flag end-of-life ships prior to their last voyage to the beaching yards in an attempt to conceal original ownership. Almost half of the ships beached in 2023 changed their original flag to a grey- or black-listed flag registry just weeks before hitting the beach. The flags of Cameroon, Comoros, Mongolia, Palau, St Kitts & Nevis and Tanzania were particularly popular with cash buyers. At least two of these flag changes enabled Greek companies Danaos Shipping and Ilios Shipping to circumvent the EU Ship Recycling Regulation which requires EU flagged vessels to only be dismantled in EU approved ship recycling facilities.

“The EU shipping sector is not being held accountable for safe and environmentally sound ship recycling. The number of ships with an EU flag at end-of-life is dwarfed by the amount of European tonnage beached in South Asia, and begs for the extension of the scope of the EU Ship Recycling Regulation to include ownership, not only flag,” says Benedetta Mantoan, Policy Officer at the NGO Shipbreaking Platform.

Looking ahead, the number of ships that will need to be dismantled is expected to surge. At the same time, the growing focus on circularity and demand for low-carbon scrap steel provides opportunities to transform the ship recycling sector. EU legislation on ship recycling will be reviewed, providing an opportunity to close existing loopholes and enhance corporate accountability.

“We applaud the forward-looking governments and companies that are developing laws, policies and technologies to encourage the expansion of sustainable ship recycling capacity. The new regulation issued by the UAE Government and the new policy adopted by Brazilian Petrobras considerably raise the bar for ship recycling, and showcase that it is possible for both governments and companies to say no to beaching”, says Jenssen.
Source: NGO Shipbreaking Platform