• 2017 August 12 09:18

    EC releases report on the viability of a financial incentive for sustainable ship recycling under the EU Ship Recycling Regulation

    The European Commission released its report on the viability of a financial incentive for sustainable ship recycling under the EU Ship Recycling Regulation this week. Whilst it acknowledges the benefits for clean and safe ship recycling such an incentive would bring, the European Commission has decided to wait with its introduction. NGOs urge the EU to take action now as it is well documented that ship owners will with ease be able to circumvent the EU Ship Recycling Regulation by simply swapping the flag of their vessel to that of a non-EU State.

    The report of the European Commission is based on the study which was conducted by Ecorys, DNV-GL and the University of Rotterdam/Erasmus, and published at the end of 2016. The proposed instrument in the study is in the form of a licence which each ship, regardless of its flag, needs to acquire in order to enter EU ports. This licence can be bought monthly, yearly, or every 5 years, depending on the trading requirements, and will be ship-specific. At the end of the ship’s life, the money spent on buying the licences will have been put aside and can be paid back to the last owner of that ship once it is recycled at a facility which is approved according to the EU Ship Recycling Regulation. Such an incentive will offset the higher profits made when selling to substandard shipbreaking yards and ensure the proper recycling of EU-trading ships regardless of their flags.
     
    In the report published on 8 August, the European Commission sees this system of the Ship Recycling Licence as a workable solution if it is demonstrated that there are many ships that will flag out to circumvent the EU Ship Recycling Regulation, thereby weakening its effectiveness. All EU-flagged vessels will have to be recycled in an EU-approved facility starting from the end of 2018 at the latest. Only once it is clear what the effects of the EU List are on the recycling choices of shipowners, will the Commission consider whether to go ahead with introducing the Ship Recycling Licence. Therefore, if shipowners choose to recycle their vessels responsibly in a facility on the EU List and do not flag out in order to circumvent the Ship Recycling Regulation, the Commission believes that it will not be necessary to introduce a financial mechanism.

    However, flagging out at end-of-life is a practice which is already widespread. Most shipowners sell their obsolete vessels to so-called cash buyers. These scrap-dealers become the new owners of the ships and both re-name and re-flag the vessels for their last voyage to the beaching yards in South Asia. Particularly popular registries amongst the cash buyers are the Paris MoU grey- and black-listed flags of Comoros, Palau and St. Kitts and Nevis – flags that are known for their poor implementation of laws governing labour rights and environmental protection at sea. Maersk also already threatened that it would flag out its fleet from the Danish registry if the Alang beaching yards they have recently chosen to use are not approved by the EU. Swapping the flag of a ship is easy and makes it very simple for cash buyers and shipowners to circumvent the law. The motivation for doing so is also simple: dirty and dangerous shipbreaking brings higher profits due to the lack of investments in infrastructure, illicit handling of hazardous wastes and extremely poor working conditions. For these reasons the NGO Shipbreaking Platform urges the EU Commission to not wait for the effects of the EU List, but instead show that it intends to take all measures possible to change the current deplorable shipping practices and commit now to making a legislative proposal to introduce a financial incentive.

    Legislation based on flag state jurisdiction alone is far too easy to circumvent. That is why more policies aimed at improving the social and environmental performance of shipping is being enforced via port state control. The Ship Recycling Licence is as such in line with international trade law. Taking also into account the widespread acknowledgement that financial incentives are key in ensuring the success of environmental policies, it seems obvious that a return scheme for ships is needed to change the behavior of shipowners that currently earn profits at the detriment of workers’ health and lives and the environment.


2017 August 23

18:36 U-Ming Marine Transport has become the constituent of the FTSE4Good Index
18:27 HMM’s cargo processing at Busan Port hit new record
18:06 IHC America wins a new contract with Weeks Marine
17:54 Steel cutting ceremony of Sirius Shipping’s newbuilding held at AVIC Dingheng shipyard in China
17:36 UK operator SMS Towage buys new tug from Sanmar Shipyards
17:19 Indian Navy commissions second landing craft utility ship MK-IV 'IN LCU L52'
17:06 TOTE Maritime prepares for next phase of LNG operations
17:00 Northwest Seaport Alliance July container volumes show 5 percent increase year to date
16:58 Ukraine’s water transport carried 0.3 mln passengers in Jan-Jul'17, up 37.6%, Y-o-Y
16:57 Panama Canal welcomes largest capacity container vessel to-date through expanded locks
16:55 Konecranes signs contract with Shenzhen Energy Group Environmental Protection Company for thirteen fully automated WtE cranes
16:42 Port of Virginia orders four new cranes
16:36 Cargo transportation by Ukraine’s water transport down 2.1% to 3 mln t in 7M’17
16:17 Van Oord awarded contract to construct Deutsche Bucht offshore wind farm
16:13 CMA CGM announces FAK rates from Asia to North Europe
16:00 Rustam Khalitov appointed as Director General of KNRG Upravleniye, management company of Caspian Energy Group (photo)
15:40 7th Fleet Commander relieved due to loss of confidence
15:14 Russia’s General Board of State Expert Review approved stages of Zvezda Shipyard project (Far East)
14:59 Russia develops digital platform for testing unmanned ship navigation
14:18 CMA CGM invests in the NYSHEX market and accelerates its digital transformation
13:15 KFTC announces decision concerning the violation of south Korean antitrust law by car carriers
12:43 Dmitry Medvedev signed amendments into regulations on delivery of caught and processed aquatic bioresources (document)
12:12 SaR operations continue in Singapore to find missing sailors of USS John McCain
12:00 LNG carrier Christophe de Margerie passed the Northern Sea Route for 6.5 days without assistance of icebreakers (photo)
11:23 MPA and IBM complete pilot trial on new cognitive-based system to improve maritime and port operations
11:04 Sovershenny, newest corvette of RF Navy's Pacific Fleet is open for visitors of the Army 2017 Forum
10:46 USC congratulates UCL Holding on the tenth anniversary!
10:25 Russian Chamber of Shipping congratulates UCL Holding on the first round number anniversary – 10 years in the market!
10:02 Brent Crude futures price down 0.35% to $51.69, Light Sweet Crude – down 0.33% to $47.67
09:44 TOTE Maritime’s LNG supplier gets the green light for LNG facility and barge-to-ship bunkering
09:33 Bunker prices go up at the port of Saint-Petersburg, Russia (graph)
09:14 Baltic Dry Index down to 1,249 points

2017 August 22

17:57 Gazprom Export LLC congratulates UCL Holding with a decade of fruitful activities!
17:28 Gazprom Neft resumes regular bunkering of vessels with marine lubricants at the port of Ust-Luga (photo)
17:05 OOCL celebrated the christening of hull of OOCL Germany
16:36 Reconstruction of Beringovsky Port will let boost coal exports to 2 mln t per year – Beringpromugol
16:05 MAN Diesel & Turbo and AKA win order from federal Russian agency
15:50 Cuxport handles crane parts weighing several tonnes for the NYK Bulk & Projects shipping company
15:34 SGS Group opts for Aqua-tools ballast water test kits
15:04 CMA CGM announces GRI from Asia to Panama, the Caribbean and Cuba on PEX2 service
14:35 First of ten Stan Tug 1907 ICE completed by Great Lakes Shipyard for The Great Lakes Towing Company
14:25 Baker McKenzie and COBALT selected the legal advisers of the IPO of the Port of Tallinn
14:02 ABP’s Scottish ports raise funds for RNLI and Fisherman’s Mission
13:38 IMO and Liberia looking to enhance maritime security
13:14 Bunker prices are still high at the Far East ports of Russia (graph)
12:47 Dredging at two berths of Vladivostok will let the port accommodate large cruise liners from 2018 (photo)
12:23 Sea Port of Saint-Petersburg has increased financing of labour safety actions by 23%
12:15 Port of Los Angeles and GE Transportation build on early success of pilot with commerical agreements worth up to $12 million
11:59 Maritime security code under review
11:36 ABB’s Onboard DC Grid enables integration of energy storage on specialized hybrid wind farm vessel
11:24 Stealth Maritime Corp. comments on collision of Navy vessel and its Liberia flagged tanker
11:12 FESCO launches its first transit train between China and Europe via Mongolia
10:44 About RUB 14 bln spent for construction of Vykhodnoy-Lavna line under MTH project – Murmansk Region Governor (photo)
10:20 Brent Crude futures price up 0.58% to $51.97, Light Sweet Crude – up 0.59% to $47.81
09:57 Association of Commercial Sea Ports congratulates the management and the team of UCL Holding on the group’s 10th anniversary!
09:35 Coal exports via Rosterminalugol terminal hit 15 mln t milestone this year (photo)
09:14 Baltic Dry Index up to 1,099 points

2017 August 21

18:06 Bahri completes registration of ASLAF under Saudi national flag
17:51 BC Ferries releases first quarter results
17:28 Khersones sailing ship takes part in celebrations marking Yalta City Day