Norwegian Ship Management Firm Accepts $720,000 Fine for Illegal Shipbreaking in India
In a case highlighting the perils of lax regulations in shipbreaking practices, Norwegian ship management company Altera Infrastructure has agreed to pay an 8 million NOK (approximately $720,048) fine. The penalty, issued by Norway’s National Authority for Investigation and Prosecution of Economic and Environmental Crime (Økokrim), stems from the illegal scrapping of two shuttle tankers, Navion Britannia and Alexita Spirit, at Alang, India.
The Belgium-based NGO Shipbreaking Platform revealed that the tankers, sold for dismantling at a beaching facility in Alang, were disposed of in violation of European Union (EU) laws. These regulations prohibit the export of end-of-life ships from EU waters to non-OECD countries to prevent hazardous waste from causing environmental and human harm in developing nations.
The shipbreaking process at Alang, referred to as “beaching,” involves dismantling vessels in the intertidal zone without proper containment. This practice contributes to severe environmental pollution, including metal contamination of coastal ecosystems, and exposes workers to significant health and safety risks due to inadequate protective measures.
“The consequences of beaching extend far beyond the shores where these ships are scrapped,” said Ingvild Jenssen, Executive Director of NGO Shipbreaking Platform. “The process pollutes ecosystems and puts vulnerable workers in harm’s way.”
The controversy dates back to 2018 when Altera Infrastructure—then known as Teekay Shipping—sold Navion Britannia and Alexita Spirit to a dismantling yard in India. In 2020, Økokrim issued a fine against the company after investigations revealed that the sale breached both European and international laws. Authorities conducted a raid on Altera’s Stavanger offices, seizing potential evidence and interviewing witnesses.
Initially, Altera contested the fine, maintaining that the sale complied with the Hong Kong Convention—a 2009 international treaty aimed at ensuring safe and environmentally sound recycling of ships. However, further investigations proved violations of the treaty, alongside EU and international regulations, which strictly forbid exporting hazardous waste to non-OECD countries.
The company’s defense—that the tankers were intended for retrofitting rather than scrapping—was undermined by evidence showing the vessels were sold to Singapore-based Wirana Shipping. Wirana, a cash buyer known for facilitating transactions with South Asian beaching yards, played a central role in enabling Altera to secure a higher price for the tankers than what sustainable recycling facilities would have offered.
The case against Altera is not an isolated incident. The shipbreaking industry has long been plagued by malpractice. Wirana Shipping itself was fined NOK 7 million in 2019 for attempting to export the barge carrier Harrier to Pakistan for scrapping, in violation of Norwegian waste export laws.
Similar cases have occurred across Europe. Dutch shipowner Seatrade faced fines of up to €750,000 in 2018 for illegal exports of vessels to South Asian beaches. Another Dutch company, Jumbo, was fined €25,000 for its involvement in the export of an end-of-life ship to Turkey.
“Shipowners have long known that exporting vessels to developing countries violates international environmental laws,” Jenssen said. “Yet, the higher profits from scrapping on tidal mudflats in South Asia often outweigh compliance with legal and ethical standards.”
The Altera case comes amid increasing scrutiny of global ship recycling practices. The International Maritime Organization’s Hong Kong Convention, set to take effect on June 25, 2025, aims to address these issues by requiring safer and more sustainable ship recycling methods. However, critics argue that the convention falls short of preventing violations like those committed by Altera, as it lacks robust enforcement mechanisms.
Moreover, EU regulations currently apply only to vessels flagged or disposed of within EU waters. This loophole allows shipowners to reflag their vessels or conduct end-of-life sales through intermediaries, evading stricter oversight. Jenssen urged for broader application of EU laws, asserting that they should extend to all EU companies, regardless of where the vessels are dismantled.
Beyond regulatory breaches, the human and environmental toll of illegal shipbreaking remains a pressing concern. In Bangladesh, the oil tanker MT Suvarna Swarajya exploded at a shipbreaking yard earlier this year, killing six workers and leaving many injured. Such incidents underscore the hazardous conditions faced by workers in the industry, particularly in South Asia, where safety protocols are often disregarded.
Following the Suvarna Swarajya tragedy, Bangladeshi authorities shut down the offending yard indefinitely. However, incidents like these reveal systemic flaws in global ship recycling practices, which continue to prioritize profit over safety and sustainability.
The NGO Shipbreaking Platform has consistently advocated for stricter regulations and better enforcement to curb illegal practices. Among its recommendations is the development of sustainable ship recycling facilities closer to home, which would align with the EU’s circular economy goals. Additionally, the NGO and other groups like Human Rights Watch have called for measures to ensure worker safety and environmental protection in developing nations where shipbreaking is prevalent.
“There’s an urgent need to close regulatory gaps and strengthen enforcement,” Jenssen emphasized. “The EU must handle its hazardous waste responsibly and invest in sustainable solutions for recycling vessels.”
The case against Altera Infrastructure sheds light on the broader challenges facing the shipping industry. While the company’s decision to pay the fine marks a step toward accountability, it also highlights the systemic issues that enable such violations to persist.
As the Hong Kong Convention approaches implementation, stakeholders worldwide must collaborate to ensure that ship recycling practices prioritize environmental protection and human rights. Only through stringent enforcement, increased transparency, and global cooperation can the industry move toward a more sustainable future.
