Evergreen Marine Corp is threatening to take legal action against cash buyers found in breach of sales contracts, after a ship sold for demolition ended its life on a beach in Bangladesh rather than in a green facility as contracted.
"Evergreen reiterates that all buyers of its aged vessels should strictly comply with the memorandum of agreement which requires that only a 'green-ship recycling' shipyard, certified by the Hong Kong Convention, should be used for demolition," an Evergreen spokesman said on Friday in a statement to TradeWinds.
"If the recycling of the company’s vessels does not follow its stringent standards, Evergreen will undoubtedly take the necessary legal action to safeguard its values of eco-friendly operation."
Investigations by Evergreen began on 5 December, following a TradeWinds report on the same day that a containership sold for demolition under the Taiwan-based owner's new policy only using green scrapping in India had instead ended up in Chattogram, Bangladesh.
"Upon hearing last week information about the handling of the vessel subsequent to the sale, Evergreen issued an official notice dated on 5 December 2019, warning the buyer of possible legal action that may be taken if it is proved that the buyer is in breach of contract," the spokesman said.
Broker reports in August said Singapore-based cash buyer Somap International had bought the 5,364-teu Ever Unison (built 1996) as one of four vessels Evergreen sold for demolition in August.
Based on shipping databases and a Chattogram port bulletin, the 24,039-ldt ship, which has been renamed One Bridge, brought in $397 per ldt, making it worth $9.5m for scrap.
That is as much as $600,000 more than it would have brought in if the vessel was scrapped in India at a "green" facility under sales terms calling for compliance with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships.
Some three months after the sale, AIS information indicates that the former Ever Unison went dark on about 15 November after staying at anchor off Colombo for two weeks.
The Chattogram bulletin said the ship arrived on 21 November and was beached on 29 November.
Earlier this year, Evergreen began requiring all cash buyers to agree to demolish ships at Indian "green yards". The move followed criticism of several shipowners for allegedly unsound scrapping practices.
"Evergreen is carrying out a thorough investigation to determine if the recycling of this vessel meets the terms demanded by this agreement," the Evergreen spokesman said.
