The International Chamber of Shipping has welcomed the Bangladesh government’s ratification of an international recycling convention as it paves the way for its worldwide enforcement.
A Bangladesh government cabinet meeting this week adopted the Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships (HKC) into the country's law.
It now means that, with the earlier backing of India, countries representing enough recycling capacity have acceded to the HKC for it to enter into force.
It only requires one more major flag state to sign up to complete the entry into force requirement.
The ICS’s John Stawpert, senior manager of environment and trade, said Bangladesh had shown leadership by signing up to the convention. He said shipping required a global rather than regional recycling regulation.
“Our industry is international and ship recycling can only be effectively governed through a global system,” he said.
“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, the International Maritime Organization.”
The enforcement of the convention will require shipowners to recycle tonnage at yards which are compliant with the convention’s standards.
It also comes as the move toward decarbonisation is set to accelerate the renewal of the world fleet, sending an increasing amount of tonnage to the scrap yard in the coming years.
Stawpert said the HKC had increasingly become the standard in the ship recycling market.
“Ratification by a major ship recycler such as Bangladesh further confirms this trend, and the entry into force of the convention will create the global level playing field that has been evolving for a generation. Compliance with the requirements of the convention will therefore be essential for ship recyclers to secure their market share in the future,” Stawpert said.
Cash buyer GMS said that Bangladesh yards are now improving to meet the standards of the convention.
It said the country had an “impressive capacity and infrastructure for ship recycling.”
GMS said three yards have received ClassNK HKC accreditation in Chittagong. “These developments signify the growing recognition and compliance with the HKC in the region,” GMS said.
