BIMCO warns of potential ship recycling regulatory inconsistencies

The signatories are asking the MEPC of the International Maritime Organization (IMO) to offer more legal certainty that shipowners and parties operating in compliance with the Hong Kong Convention will not be sanctioned as a violation of the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal (the Basel Convention). The signatories are concerned that a failure to do so could have severe consequences for shipowners, ship recycling facilities and ships.

The letter notes that contravention of the Basel Convention, as applied to ship recycling, has resulted in sanctions against shipowners and masters. The Motorship notes that there is concern that the EU may seek to tighten restrictions on the export of vessels, in line with other moves to increase recycling within the bloc affecting end of life vehicles, waste electronic devices and white goods.

“The ratification of the Hong Kong Convention marks the beginning of a new era for the ship recycling industry. We must make sure that legal obstacles and conflicts between the two conventions governing the safe and sound recycling of ships do not limit the scope of this historic opportunity,” BIMCO’s Secretary General & CEO, David Loosley says.
 
One of the inconsistencies the paper asks the IMO to consider is related to hazardous waste. Once a ship has received an International Ready for Recycling Certificate (IRRC) under the Hong Kong Convention, it may at the same time be considered a hazardous waste under the provisions of the Basel Convention. During the entire validity period of the IRRC (up to three months), the ship could therefore risk being arrested for breach of the Basel Convention requirements while trading.  
 
Since both the Hong Kong Convention and the Basel Convention can apply to end-of-life ships, shipowners risk prosecution in cases when the shipowner has sent the ships for safe and environmentally sound recycling at yards that comply with the Hong Kong Convention in one of the four major recycling states, namely Bangladesh, India, Pakistan and Türkiye.