Explosion on MT Suvarna Swarajya Highlights Regulatory Failures and Labor Rights Abuses in Bangladesh’s Shipbreaking Industry
The explosion on the oil tanker MT Suvarna Swarajya on September 7, 2024, at a shipbreaking yard in Bangladesh has shed light on the dangerous conditions workers face in the industry. Six workers lost their lives, and four others remain in critical condition. The incident has reignited concerns over the lack of effective international and national regulations and oversight, and the severe labor rights violations common in the shipbreaking sector.
Weak Government Oversight
Following the explosion, the Bangladeshi government shut down the S.N. Corporation yard indefinitely and launched an investigation. The Department of Environment suspended the yard’s environmental clearance, and authorities demanded that S.N. Corporation provide reasons why it should not be permanently shut down. While these steps are commendable, they are reactive rather than preventive. Bangladesh has long struggled with enforcing its own regulations in the shipbreaking industry.
In 2019, the Bangladesh High Court issued an order banning ships flying “gray- and black-listed” flags, which have been involved in persistent safety violations, from being imported for dismantling. Despite this, over 100 ships with these flags were imported into Bangladesh last year alone, highlighting the government’s inability or unwillingness to enforce the court’s ruling.
To import a ship for dismantling, a “No Objection Certificate” from the Bangladesh Ship Recycling Board is required, along with environmental clearance and certificates from the Department of Explosives. However, a 2023 Human Rights Watch report revealed that many of these certificates were pro forma and often duplicated language, indicating that inspections of hazardous materials on board the ships were not being adequately conducted. This lack of oversight only increases the risk of accidents like the explosion on the MT Suvarna Swarajya.
Shipbreaking: A Global Issue
Shipbreaking, the process of dismantling ships for scrap metal and reusable parts, is a hazardous business. It is often outsourced to countries like Bangladesh, where regulations are weak and labour is cheap. The MT Suvarna Swarajya, originally owned by the Shipping Corporation of India, had changed hands several times before being sent to S.N. Corporation’s yard in Bangladesh for dismantling.
S.N. Corporation, which has a history of accidents and fatalities, has long been criticized for its poor health and safety practices. Since 2010, at least 14 workers have died and 22 have been injured in incidents at their shipbreaking yards. Despite this, the company continues to operate, and the recent tragedy at its Unit-2 yard underlines the dangers of this industry, where profit often takes precedence over worker safety.
Regulatory Loopholes and Certification Failures
One of the key issues highlighted by the explosion is the failure of international regulatory mechanisms to provide adequate protection. The yard where the explosion took place had been certified by Nippon Kaiji Kyokai (ClassNK), one of the largest ship classification societies, under the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships. The Hong Kong Convention, set to enter into force in June 2025, aims to regulate ship recycling to ensure the safety of workers and protect the environment. However, human rights organizations like Human Rights Watch and the NGO Shipbreaking Platform argue that the convention has weak environmental and safety standards, and creates a false sense of security that these shipbreaking yards are safe.
The explosion has cast doubt on the effectiveness of these certifications. Despite the yard being certified, unsafe conditions prevailed, leading to a deadly explosion. Nippon Kaiji Kyokai responded to inquiries about the incident by stating that they had conducted their audit according to International Maritime Organization (IMO) guidelines. However, the certification alone clearly did not prevent the tragedy, raising concerns about the reliability of such audits and the real level of safety in certified yards.
The Role of Cash Buyers and Loopholes
Cash buyers play a crucial role in the global shipbreaking industry. These companies purchase end-of-life ships, often from large shipping companies, and sell them to shipbreaking yards in countries like Bangladesh, India, and Pakistan. By acting as intermediaries, cash buyers help shield the original shipowners from accountability. Shipping companies can offload their vessels to cash buyers and avoid responsibility for what happens next, whether it’s unsafe working conditions or environmental damage.
The use of shell companies and shipping registries with lax regulatory requirements further obscures accountability. Many shipping companies, including those in Europe and North America, use cash buyers to circumvent regulations that would otherwise prevent them from selling ships to substandard shipbreaking yards. This system of middlemen and regulatory loopholes allows shipowners to maximize profits while avoiding responsibility for the dangerous conditions in which their ships are dismantled.
Dangerous Conditions for Workers
The shipbreaking industry in Bangladesh is notorious for its dangerous working conditions. Workers face numerous hazards, including exposure to toxic materials, heavy machinery, and the risk of explosions, as tragically seen with the MT Suvarna Swarajya. Despite these dangers, many workers receive little or no safety training and lack proper protective equipment.
A 27-year-old worker at S.N. Corporation’s yard told Human Rights Watch in 2022, “I face risk every day that I work in the shipbreaking yard. Nobody wants to work here because they know there is a risk and accidents may occur at every step. The owners do not provide us with any safety measures. They overlook these things.” While he had been given a helmet and gloves, he had to buy his own boots, goggles, and protective clothing, despite earning less than $1.50 per hour, well below the minimum wage for shipbreaking workers in Bangladesh.
The recent explosion is not an isolated incident. Earlier in 2024, two workers were injured on the MT Suvarna Swarajya, one with a broken leg from a falling pipe and another with hand injuries from a steel rope. These recurring incidents demonstrate the chronic failure of shipbreaking yards like S.N. Corporation to ensure worker safety, even on ships that are certified for recycling.
The Need for Reform
Human Rights Watch, the NGO Shipbreaking Platform, and other advocacy groups have long called for stronger regulations to protect workers and the environment in the shipbreaking industry. They argue that the Hong Kong Convention is insufficient and that it should not replace the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes, which offers a higher level of control and protection. The Hong Kong Convention, with its weak standards, allows dangerous practices like beaching, where ships are dismantled directly on tidal mudflats, causing harm to both workers and ecosystems.
The organizations also demand that shipping companies stop using cash buyers to dump their ships in unsafe yards. They call on the Bangladesh government to enforce the 2009 High Court orders, which require safety measures and labour rights protections, and to shut down any yards employing children or violating workers’ rights. In addition, shipbreaking should be moved off beaches to industrial platforms that meet the safety and environmental guidelines set by the Basel Convention.
Conclusion: A Call for Accountability
The explosion on the MT Suvarna Swarajya is a grim reminder of the failures in the shipbreaking industry, from regulatory loopholes to dangerous working conditions. While Bangladesh has taken some steps to address the issue, much more needs to be done both nationally and internationally to protect workers and the environment. The shipping industry, cash buyers, and governments all share responsibility for ensuring that ships are dismantled safely and sustainably. Without comprehensive reforms, the shipbreaking industry will continue to exploit vulnerable workers and damage fragile ecosystems in countries like Bangladesh.
