• Home
  • News
  • BIMCO: EU ship recycling regime improved but gaps remain
  • 2020 December 4 17:46

    BIMCO: EU ship recycling regime improved but gaps remain

    An updated Report on the European list of ship recycling facilities, commissioned by BIMCO, shows progress in increasing the number of active yards on the list, but the rules still don’t reflect commercial realities and lags behind on capacity to scrap large commercial ships, BIMCO said in its release.

    “It is positive that the EU list of approved recycling facilities has been expanded, but the fundamental problem persists: the capacity required for the large EU-flagged fleet simply isn’t there, which is especially evident when it comes to recycling Panamax-size and larger ships in accordance with the EU regulation,” says BIMCO Secretary General David Loosley.

    According to the report, “Turkey is to all intents and purposes, the only country on the list that provides recycling that is targeting ‘panamax’ sized ships.”

    At present, Turkish yards are mainly busy with recycling cruise ships, and therefore not able to handle other ships types.

    Lack of sufficient recycling capability puts shipowners in a situation where they are unable to recycle their ships at yards on the list, leaving them no alternative than to reflag their aging ships to flag states outside the EU.

    “The intention of protection the environment and ensuring worker safety is spot on, but in BIMCO we would wish that the EU instead had aimed the good intentions toward ratifying the Hong Kong Convention,” Loosley says.

    The Hong Kong Convention, which BIMCO fully supports, aims to ensure safe and environmentally friendly recycling globally, which includes certification and enforcement. But the Hong Kong Convention has not yet entered into force.

    On top of the lack of suitable shipyards, the price difference in steel will mean a loss of at least 150 USD per tonne, compared to recycling in an Indian yard, which could for example go to investing in more modern ships.

    The report shows that there are yards, which can comply, and which are commercially viable in India.

    Two Indian yards have been audited (out of 20 applicants). One of those yards was found to be acceptable, although the local infrastructure behind the yard was not. This demonstrates that ship recycling is moving in the right direction in India.

    In addition, BREXIT is a separate issue, where UK-based yards need to re-apply to the EU-list. That said, their inclusion would do little to alleviate the fundamental issues mentioned above.

    To summarize, there are still a number of barriers for ship recycling adhering to the EU ship recycling regulation:
     Lack of capacity, especially for Panamax and larger ships
     Prices for steel at European yards are not competitive and commercially unviable
     Yards in northern Europe are focused on the significantly more profitable offshore decommissioning market
     The addition of Turkish yards is welcome, but ultimately doesn't change the big picture
     Yards in India have improved, and it seems that they can live up to the safety and environmental requirements, but they are still excluded from the list.

    About BIMCO

    BIMCO is the world's largest international shipping association, with around 1,900 members in more than 120 countries, representing 59% of the world’s tonnage.




2021 October 28

18:19 18 MOL-managed vessels earn commendations from Japan Coast Guard
17:58 Frigate Admiral Grigorovich of RF Navy's Black Sea Fleet makes planned transition to far sea zone
17:29 MYCRANE signs MoU with Swiss-based EPCM, PESCO Switzerland AG
17:00 Tersan shipyard (Turkey) hosted flag-raising ceremony for trawler built for Russian customer
16:21 Viking Line provides the best customer experience in the tourism industry
16:12 China ports container volume rises 9.5% from January to September 2021, NCFI slight decrease in October
16:09 OOS Group introduces the SMF
15:46 Shipbuilding Complex “Zvezda” to allocate RUB 2.95 billion for construction of dry dock and outfitting workshops
15:23 Methanex and MOL finalize definitive agreements for a strategic shipping partnership
14:51 Demonstration project begins for commercialization of vessels equipped with domestically produced ammonia-fueled engine
14:29 Top management change in Eidesvik Offshore ASA
14:11 MABUX: Bunker Weekly Outlook, Week 43, 2021
13:54 San Pedro Bay ports announce new measure to clear cargo
13:40 RF Transport Minisry to consider discounts for LNG-powered ships in Far East ports upon request from business
13:29 IMO-Singapore maritime Single Window Project picks Angola port
12:52 Finnlines increases capacity between Finland and Sweden in January 2022
12:24 Ro-Ro/Passenger ferry Baltic Princess returned to Turku – Stockholm route following her DD at Turku Ship Repair Yard
11:38 Tallink Grupp reports the first quarterly profit since the start of the COVID pandemic
11:15 First vessel sails into Lumsden Point
10:53 Sovcomflot expects full-scale competition of ammonia, hydrogen and methanol with LNG not earlier than in 4-8 years
10:11 MABUX: Bunker prices may decline on Oct 28
10:07 ABS My Digital Fleet™ expands maritime IoT capabilities with the PI System from AVEVA
09:49 Net profit of PAO NOVATEK for 9M’2021 increased 11.5 times
09:30 Oil prices continue decreasing
09:14 Baltic Dry Index as of October 27
09:03 ‘Shanghai-Express’ reaches Port of Hamburg
08:56 NEDO selects Methane Slip Reduction Project for next generation ship development

2021 October 27

18:22 IMC Shipping appoints Mingfa Liu as managing director for ship services
18:07 TotalEnergies and MOL hold naming ceremony of France’s first LNG bunker vessel
17:51 Damen built LNG bunkering vessel enters service in the Gulf of Finland
17:42 Rosmorport takes delivery of LNG-powered Ro-Ro ship Marshal Rokossovsky
17:40 DEME Offshore installs final foundation at Hornsea Two offshore wind farm
17:34 Port of Zeebrugge posts a strong growth in nine months of 2021
15:40 Dublin Port volumes down by 3.3% after nine months of 2021
14:33 IMO considers midterm-measures for GHG reduction from ships
14:12 BIO-UV Group adds 3d scanning to turnkey BIO-SEA BWTS retrofit services
13:50 Ocean Yield agrees to invest in six VLCCs with 10-year bareboat charters to International Seaways
13:02 WinGD invests in training as gas-fuelled fleet grows
12:52 Vyborg Shipyard contracted to build an 18 MW icebreaker for Rosmorport
12:38 Zero emissions by 2050 is not enough for most developed countries if planetary warming is to be limited to 1.5 degrees - DNV
12:37 The LNG Fleet, LNG Bunkering and Other Alternatives Conference kicks off in Moscow
12:06 FESCO to supply Indian stations in Antarctica for another 5 years
11:51 Constructora Vale Verde places a repeat order for a cutter suction dredger with Damen Shipyards
11:19 MarineMax reports record fourth quarter and fiscal year results
11:18 FSRU Marshal Vasilevskiy completes maiden voyage with LNG cargo on the Northern Sea Route
10:09 Siemens Gamesa solidifies offshore presence in U.S. with Virginia blade facility
09:55 MABUX: No firm trend on Bunker market on Oct 27
09:33 Baltic Dry Index as of Oct 26
09:25 Aquadrill announces sale of a semisubmersible drilling unit
08:57 Oil prices edge lower

2021 October 26

18:06 FarSounder and NAVTOR announce a new partnership
17:49 Russian State Duma approves a bill on wrecks removal in the first reading
17:36 FuelEU can do more for the decarbonisation of shipping – World Shipping Council
17:08 First global hydrographic innovation and technology laboratory established in Singapore
16:31 BIO-UV Group adds 3D scanning to turnkey BIO-SEA BWTS retrofit services
16:24 Wärtsilä commits to carbon neutrality by 2030
16:05 CSL Americas takes delivery of second converted self-unloading ship
15:27 Damen Maaskant Shipyards Stellendam delivers 38-metre Beam Trawler to Rederij Long Ships
15:17 Vard Electro dual-battery pack to reduce emissions for Siem Offshore subsea vessel
15:01 Baltic Shipyard marks successful loading of shield tank duo onto the 22220 nuclear icebreaker Yakutia