BIMCO, one of the world’s largest international shipping associations, in collaboration with Bangladesh, India, Norway, Pakistan, and the International Chamber of Shipping (ICS), has submitted a proposal for the 81st Marine Environment Protection Committee (MEPC) meeting scheduled for 18-22 March 2024.
The proposal underscores the critical need to address potential conflicts between the requirements of the Hong Kong Convention and the Basel Convention, which could pose significant challenges for ship owners, ship recycling facilities, and vessels.
The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (the Hong Kong Convention) is set to effect on 26 June 2025.
Before its implementation, BIMCO and the co-signatories of the proposal urge the MEPC of the International Maritime Organization (IMO) to provide greater legal clarity.
This involves seeking clarification and assurances that ship owners and relevant parties adhering to the Hong Kong Convention will not face penalties for purportedly violating the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal (the Basel Convention).
“The ratification of the Hong Kong Convention marks the beginning of a new era for the ship recycling industry. We must make sure that legal obstacles and conflicts between the two conventions governing the safe and sound recycling of ships do not limit the scope of this historic opportunity,” stated David Loosley, secretary general of BIMCO.
In certain jurisdictions, violations of the Basel Convention concerning ship recycling have led to penalties imposed on ship owners and masters.
According to a statement, one of the inconsistencies the paper asks the IMO to consider is related to hazardous waste. Under the Hong Kong Convention, a ship that has obtained an International Ready for Recycling Certificate (IRRC) may simultaneously be classified as hazardous waste under the Basel Convention.
Throughout the entire validity period of the IRRC (which can extend up to three months), the ship could be at risk of being detained for non-compliance with Basel Convention regulations while engaged in trading activities.
Given that both the Hong Kong Convention and the Basel Convention apply to end-of-life vessels, ship owners face potential legal action in scenarios where they have sent vessels for safe and environmentally sound recycling at yards compliant with the Hong Kong Convention in one of the four major recycling states—Bangladesh, India, Pakistan, and Türkiye.
“We and the co-sponsors of this paper welcome and support the increased transparency and rising standards brought about by the Hong Kong Convention finally entering into force. It is therefore crucial for the consistent implementation of the convention to ensure that compliance does not result in sanctions under the Basel Convention,” stated Loosley.
