BIMCO Launches Ship Recycling Alliance to Propel Safe and Sustainable Ship Disposal
In a significant push towards environmental and safety improvements in the ship recycling industry, BIMCO, the world’s largest international shipping association, has launched the Ship Recycling Alliance. This new coalition aims to unify industry voices and streamline global standards for the safe and environmentally sound disposal of ships. By bringing together key players, BIMCO’s initiative seeks to facilitate the global implementation of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC). This framework will come into force in June 2025.
The Ship Recycling Alliance is an urgent response to current industry demands, especially as projections indicate that over 15,000 ships are expected to be recycled over the next decade. As these vessels end their operational lives, the demand for compliant and responsible recycling yards—particularly in prominent shipbreaking countries like India, Bangladesh, and Pakistan—intensifies.
Why a Ship Recycling Alliance?
Traditionally, only a small percentage of shipowners have opted for recycling processes that meet HKC standards voluntarily, often due to added costs and logistical challenges. Many ship recycling facilities have historically been notorious for their poor safety records and environmental impact, especially in areas where outdated and hazardous methods are still used. By creating the Ship Recycling Alliance, BIMCO seeks to drive a shift in this trend, encouraging more industry players to adopt HKC-compliant recycling practices that safeguard both workers and the environment.
David Loosley, BIMCO’s Secretary General and CEO, emphasized the need for collaboration in achieving this shift. “Part of the ship recycling industry is already trying to live up to the HKC standards ahead of its entry into force,” he stated. “To succeed in having our ships recycled responsibly and safely for people and the environment, we need all stakeholders to engage and step up pace. The Ship Recycling Alliance will connect stakeholders, advise regulators, and create awareness among the public.”
The Hong Kong International Convention: A Blueprint for Safe Recycling
The Hong Kong Convention (HKC), adopted in 2009 by the International Maritime Organization (IMO), lays out specific guidelines to ensure safe and environmentally responsible ship recycling. The convention mandates that ships be decommissioned in facilities designed to minimize risks to both human health and the environment. Standards cover a wide range of issues, from the prevention of hazardous waste release to worker safety practices and pollution control measures.
The convention’s entry into force in June 2025 is a landmark development, but implementing it will require substantial cooperation from shipowners, recycling facilities, and regulatory bodies. Currently, a small fraction of the world’s ship recycling yards meet these standards, leaving a critical gap in infrastructure. Many yards in South Asia—the heart of the ship recycling industry—are under pressure to upgrade their facilities to comply with HKC requirements.
Bridging Global Standards: The Role of the Ship Recycling Alliance
One of the primary objectives of the Ship Recycling Alliance is to facilitate open dialogues with the IMO, the Secretariat of the Basel Convention (BC), and other relevant authorities to ensure alignment and legal clarity. The Basel Convention, which governs the cross-border movement of hazardous waste, plays a vital role in ship recycling as the disposal of ships often involves significant amounts of toxic waste. Aligning the Basel Convention’s requirements with those of the HKC is critical to establishing a coherent regulatory framework.
To address these challenges, the Ship Recycling Alliance will work on assessing and responding to any proposed amendments to the HKC and providing support for the implementation and enforcement of Basel Convention guidelines. This collaborative effort will aim to ensure that waste management practices within ship recycling align with both HKC and Basel standards, ultimately leading to safer and more sustainable disposal methods.
Dr. Nikos Mikelis, a non-executive director of GMS, a global cash buyer of end-of-life ships, and former Head of Marine Pollution Prevention and Ship Recycling at IMO, chairs the alliance. He remarked on the timeliness of the initiative: “It is high time for an initiative like the Ship Recycling Alliance to be launched and put to work. We need an alliance that can formulate and represent the views of the international ship recycling industry and connect that with all other stakeholders involved. Doing so, we strongly believe we can move forward and fuel progress.”
Founding Members and Stakeholders of the Alliance
The Ship Recycling Alliance is bolstered by a coalition of founding members representing various sectors of the ship recycling industry. The initial group includes:
- Bangladesh Ship Breakers and Recyclers Association (BSBRA)
- Turkish Ship Recycling Industry Association (GEMISANDER)
- GMS and Wirana, both global cash buyers specializing in end-of-life vessels
- Guideship, a ship recycling services company
- Pakistan Ship Breakers and Recyclers Association (PSBRA)
- Ship Recycling Industries Association of India (SRIA)
- Bansal Group, a prominent ship recycling company in India
This diverse membership brings together cash buyers, recyclers, and industry associations from key ship recycling countries. These stakeholders are tasked with promoting industry best practices, fostering innovation in recycling techniques, and advocating for policy changes to make the HKC a practical and effective tool in global ship recycling.
The Challenges Ahead: Compliance and Awareness
The path to responsible ship recycling is not without challenges. For shipowners, the decision to recycle a vessel in a facility that meets HKC standards often comes with additional costs, as HKC-compliant yards usually invest heavily in safety protocols and environmental protection measures. Consequently, many shipowners have been hesitant to use these yards, leading to a reliance on cheaper, non-compliant options.
However, as Loosley highlighted, a shift towards HKC-compliant practices will benefit the industry in the long run. Not only will it reduce environmental degradation and improve worker safety, but it will also foster a positive public image for shipping companies that prioritize sustainable practices. By engaging stakeholders and creating greater public awareness, the Ship Recycling Alliance hopes to encourage a mindset shift across the industry, making compliance a matter of pride and corporate responsibility.
A Roadmap for the Future of Ship Recycling
With its launch, the Ship Recycling Alliance sets a new course for the ship recycling industry, one that aligns with the standards and ideals enshrined in the HKC. As more vessels reach the end of their lifespan in the coming years, the alliance will play an essential role in helping the industry manage this influx responsibly and sustainably.
The alliance’s formation is a pivotal step in meeting the challenges posed by global ship recycling needs. By creating a unified voice for the ship recycling industry and working closely with international regulatory bodies, BIMCO and its partners hope to make HKC-compliant recycling the new industry norm. As the deadline for the HKC’s enforcement draws near, the alliance’s efforts will be critical to preparing the industry for a safer, more sustainable future.
In 2025 and beyond, the Ship Recycling Alliance aims to lead by example, proving that economic growth and environmental responsibility can—and should—go hand in hand in the global shipping industry.
