There’s just over six weeks to go until the enacting of one of this year’s most significant shipping regulations, and one key country is ill-prepared for the imminent changes coming to the ship recycling sector.
June 26 sees the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships enter into force ensuring that ships, when recycled after reaching the end of their operational lives, do not pose unnecessary risks to human health, safety, or the environment, a global regulation that will require many recycling sites to upgrade facilities to be compliant.
In Bangladesh, one of the world’s top three demo nations, local ship recyclers are facing challenges.
According to Clarksons Research, recyclers have requested an extension to meet Hong Kong Convention compliance requirements, though getting import clearances remains challenging, with local authorities continuing to process vessel approvals on a case-by-case basis, creating additional delays and complications for potential deliveries to recycling yards.
GMS, the world’s largest cash buyer for ships to be recycled, notes that there are currently seven Bangladeshi yards that have been approved, with another 20 waiting for accreditation.
Wirana, another cash buyer, counts up to 10 vessels waiting for a long time in Bangladeshi waters ahead of recycling. Some recycling candidates that could have been sold for Bangladesh have been instead sold to India.