Posted on June 19, 2023
Bangladesh has finally approved the Hong Kong Convention for the safe recycling of ships and offshore assets, bringing the Convention a step closer towards enforcement
Readers will recall last month, the Bangladesh government confirmed its intent to ratify the Hong Kong Convention, when an industry association of major shipowners including the European Community Shipowners’ Association, the International Chamber of Shipping and BIMCO travelled to the nation to meet with officials.
The Indian subcontinent is the epicentre of the ship breaking business and Bangladesh is the second major recycling location in the region after India to ratify the convention. A Bangladesh cabinet meeting this week adopted the recycling convention and is expected to place its instrument of accession with IMO in the coming weeks.
The International Chamber of Shipping welcomed the move. Senior manager for environment and trade John Stawpert commented, “Bangladesh shows leadership by committing to ratify the Convention. Our industry is international and ship recycling can only be effectively governed through a global system. Regional systems that ignore the economic realities of the industry are easily circumvented and this positive development will guarantee sufficient compliant recycling capacity under the oversight of national authorities and the United Nations regulator, IMO.”
Adopted in 2009, the Convention aims to reduce risks to health, safety and the environment and stipulates ships sent for recycling carry an inventory of all hazardous materials on board. Recycling facilities are required to provide a Ship Recycling Plan, specifying how each vessel will be recycled, based on its particular characteristics and its inventory of hazardous materials.
But uptake has been slow. The major nations in the Indian subcontinent didn’t ratify it until India and Turkey acceded in 2019.
The Hong Kong Convention’s conditions require recycling countries representing a percentage of the tonnage of the ratifying flags to adopt it before it can enter into force.
At least 15 nations, accounting for 40% of global commercial shipping by gross tonnage must ratify the convention, with a combined maximum annual ship recycling volume of not less than 3% of their total tonnage.
Bangladeshi accession brings this a step closer. The nation represents about 32% of vessels recycled.
BIMCO believes a ship recycling boom could be coming this decade with as many as 15,000 ships heading for scrap as a result of stringent emissions requirements that will force shipowners into fleet renewal.
