BIMCO is calling on the International Maritime Organization (IMO) to solve what they described as legal inconsistencies in ship recycling conventions.

BIMCO — one of the largest of the international shipping associations representing shipowners — said it submitted a paper together with Bangladesh, India, Norway, Pakistan and the ICS (International Chamber of Shipping) ahead of the 81st Marine Environment Protection Committee (MEPC) meeting on 18-22 March 2024.

"The paper highlights the need to solve possible conflicting requirements of the Hong Kong Convention and the Basel Convention, which could have severe consequences for shipowners, ship recycling facilities and ships if unresolved," the announcement said.

It noted that the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (the Hong Kong Convention) will enter into force on June 26, 2025.

"Ahead of its entering into force, BIMCO and the co-signatories of the paper ask the MEPC of the International Maritime Organization (IMO) for more legal certainty," BIMCO said, adding that this includes clarification and assurance that shipowners and parties operating in compliance with the Hong Kong Convention will not be sanctioned as a violation of 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," said David Loosley, secretary general & CEO of BIMCO.

It added that in some jurisdictions, contravention of the Basel Convention, as applied to ship recycling, has resulted in sanctions against shipowners and masters.  

Inconsistencies between Hong Kong, Basel Convention

"One of the inconsistencies the paper asks the IMO to consider is related to hazardous waste," the report said.

"Once a ship has received an International Ready for Recycling Certificate (IRRC) under the Hong Kong Convention, it may, at the same time, be considered a hazardous waste under the provisions of the Basel Convention."

The report noted that during the entire validity period of the IRRC (up to three months), the ship could therefore risk being arrested for breach of the Basel Convention requirements while trading.  

"Since both the Hong Kong Convention and the Basel Convention can apply to end-of-life ships, shipowners risk prosecution in cases when the shipowner has sent the ships for safe and environmentally sound recycling at yards that comply with the Hong Kong Convention in one of the four major recycling states, namely Bangladesh, India, Pakistan and Türkiye," Hong Kong Convention said.

Loosley noted the importance of harmonizing the inconsistencies in both conventions.

"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," Loosley said.