BIMCO Ship Recycling Alliance one year on: Fighting misconceptions

One year on, the alliance is still working towards these goals. And one year on, end-of-life ships that are in full compliance with the HKC still risk being detained in ports for violating the Basel Convention (BC). While the entry into force of the HKC on 26 June this year marked the beginning of a new era for the ship recycling industry, change will not happen overnight.  

One year on, we are also fighting another increasingly important battle: a rise in misconceptions and misinformation about the industry and about the two global conventions that govern it. Some stakeholders embrace the Basel Convention to govern ship recycling and others advocate strongly for the Hong Kong Convention. Others believe the two in combination would offer the best solution. But when it comes to misinformation, this is beside the point.  

After all, whether people, organisations or NGOs are advocating for one convention or the other, we share the same goal: working towards a ship recycling industry that is safe for workers and sustainable for the environment. We believe that if we are to have a meaningful dialogue, misconceptions and misinformation must be addressed.  

We can argue for the next decade about whether the Hong Kong Convention or the Basel Convention is better suited to provide the basis for a safer and sustainable ship recycling industry but right here and now, legal conflicts between the two are an obstacle to achieving the end goal. So is misinformation. 

Legal disputes risk slowing progress for the yards that are already committed to providing safe jobs and environmentally sound recycling of ships. We have repeatedly called for these inconsistencies to be solved and are still working hard towards that. 

Ignoring progress 

One of the misconceptions often shared is that the ship recycling industry has not seen progress. This is a tough statement to swallow for the yards that have spent years investing in being Hong Kong Convention compliant even years before its entering into force. 

Across India and Bangladesh, ship recycling yards have invested heavily in certified facilities, modern safety systems and robust environmental management. Before the HKC entered into force this summer, around 115 of India’s 130 ship recycling yards were already HKC compliant. Now that the convention has entered into force, we believe these yards must not be ignored on EU lists, nor in the public debate: these yards represent what safe and sustainable ship recycling looks like. The improvements have been audited and verified by leading classification societies and international authorities. With the HKC entering into force, the industry finally has a practically implementable, verifiable, and enforceable legal framework, setting out transparent global rules that ensure the protection of workers, the environment, and all stakeholders involved. 

Claiming a lack of progress, or that the HKC is unfit to improve and govern the ship recycling industry is a misconception. 

Lack of transparency, enforcement and oversight? 

Another misconception is the claim that shipping and ship recycling lack regulation. The HKC enforces a global legal framework with clear rules, compliance checks, and audits to ensure transparency and accountability. 

In contrast to the BC, the HKC relies on the consent being agreed between the ship’s flag state and the recycling state. The overall process of sending ships for recycling under the HKC starts from the moment a ship is being built and requires that the shipowner holds a certificate of Inventory of Hazardous Materials during its entire lifespan. When the ship ultimately goes for recycling, the shipowner needs to ensure it is issued a valid International Ready for Recycling Certificate (IRRC) by the flag state. All steps above require extensive communication between the shipowner, the flag State, the ship recycler and the recycling State. 

Additionally, like all IMO conventions, compliance with the HKC will be verified through the IMO Member State Audit Scheme, an IMO approach that is unique in the UN. This approach is tried and tested globally and ensures a very high level of compliance across all IMO conventions. Audits are carried out regularly to evaluate how well a HKC Party State fulfils its responsibilities as a flag, port or coastal state.  

The process is methodical, unbiased and documented to ensure that IMO rules are applied consistently across all member states. Therefore, claims that the convention lacks transparency, enforcement and oversight is incorrect. 

Defining the next chapter 

One year after the launch of the Ship Recycling Alliance, our shipping market analysts now estimate that more than 16,000 ocean-going ships will require recycling over the next decade. This is more than double the number of ships recycled globally in the 10 years leading up to 2025. 

Whether you are rooting for the HKC or the BC it will continue taking tremendous efforts across the South Asia region to further improve conditions for the workers and protection of the environment. It will also require a commitment from the shipping industry to recycle ships only at HKC-compliant yards. In doing so, the maritime community can continue advancing safe and sustainable recycling practices that align with international law and global climate goals.  

One year on, we are as committed to this mission as ever and we remain confident that progress, transparency, verified compliance and cooperation will define the next chapter of responsible ship recycling.  

It is no secret that at BIMCO, we believe the HKC has the potential to change the face of ship recycling, support the circular economy and provide safe jobs to the people that need them.  

But regardless of our conviction, we ask that governments and NGOs – indeed all stakeholders – engaging in the dialogue of how to change this industry for the better, do so through constructive engagement, factual dialogue and collaboration. We share the same goal: working towards a ship recycling industry that is safe for workers and sustainable for the environment.