'A New Era for the Ship Recycling Industry'

June 26, 2023

The International Maritime Organization (IMO), Bangladesh and Liberia have announced the ratification of the Hong Kong Convention by both nations, marking what shipping trade organization BIMCO said is the beginning of a new era for the ship recycling industry.

The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, commonly known as the Hong Kong Convention, is a multilateral convention adopted in 2009, designed to improve the health and safety of current ship breaking practices.

© Sved Oliver / Adobe Stock
© Sved Oliver / Adobe Stock

The ratification comes at a time when the need for compliant facilities from the main recycling states such as India, Bangladesh and Pakistan is critical, as more than 15,000 ships will be recycled over the next 10 years, according to BIMCO estimates. During the two-year interim period, ahead of the entry in force, BIMCO is calling on shipowners to choose globally compliant yards for the benefit of the industry’s workers and the environment.  

“14 years ago, 63 nations adopted the Hong Kong Convention. Today, Bangladesh and Liberia have paved the way for the convention to enter into force. This commitment from Bangladesh and Liberia is more than just a step in the right direction, it is a leap that will benefit the environment and workers in the ship recycling industry. The Hong Kong Convention entering into force means that a fully sustainable ship-recycling industry is possible and within reach,” said BIMCO Secretary General & CEO, David Loosley.

“We commend Bangladesh’s and Liberia’s commitment to making ship recycling safe. Today is the real beginning, the work starts now. We will continue to call on shipowners to commit to choosing globally compliant yards when their ships reach the end of their life cycle,” Loosley said.

Another maritime trade group, the International Chamber of Shipping, has been advocating for the convection to be ratified and praises the move for it to come into force.

“It is overwhelmingly positive for the shipping and recycling industries, and the environment that the Hong Kong Convention has now entered into force following the most recent confirmation of ratification from Bangladesh and the Liberian Registry, a move that the International Chamber of Shipping have championed for 14 years,” said John Stawpert, Senior Manager (Environment and Trade) of the International Chamber of Shipping. “This marks a sea change for this global industry and confirms that in the near future shipowners will be confident that their vessels will find a safe and environmentally sound destination for recycling. The importance of the Convention entering into force, and what it means for ship recycling worldwide cannot be underestimated.”

Stawpert added, “Entry into force confirms the huge progress made in safe and environmentally sound ship recycling that has been driven by the Convention since its adoption in 2009 and realizes the globally compliant market into which ships must now be sold, giving shipowners confidence and legal certainty that end-of-life vessels will be recycled properly.”

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