Ship recycling turns to regulatory alignment as Hong Kong Convention takes effect

Shipowners may still need to navigate overlapping international and regional recycling rules.

The global ship recycling industry is expected to focus on aligning international regulations and maintaining consistent standards following the entry into force of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC). 

Wirana Shipping said in a statement that the HKC has established a common international framework for safer and more environmentally sound ship recycling.

The company said the convention strengthened requirements for worker training, hazardous material management, health and safety procedures, environmental protection, and operational oversight. It added that many recycling facilities invested to meet the standards.

Wirana said that more than 100 ship recycling facilities across the Indian subcontinent had achieved HKC compliance before the convention entered into force, whilst some facilities in other recycling markets continue to work towards certification.

The next challenge is improving alignment between the international and regional regulations governing end-of-life vessels.

Depending on a ship's flag, ownership, location, and intended recycling destination, shipowners may need to comply with the HKC, the EU Ship Recycling Regulation, the Basel Convention and related waste shipment rules.

Wirana said commercial pressure in the recycling market reflects competition for a limited supply of end-of-life vessels rather than compliance costs.

Strong demand has led some recyclers to bid aggressively for available ships, reducing margins across the sector.

"The Hong Kong Convention has provided the industry with a much stronger framework for safe and environmentally sound ship recycling, and it is encouraging to see so many facilities investing to meet those standards," said Hitesh Vyas, Vice President Middle East and Green Recycling Coordinator at Wirana Shipping.

Vyas said the next priority is greater alignment between international and regional regulations so shipowners have "greater clarity throughout the recycling process."

"Consistent implementation, effective enforcement, and a level playing field will be essential to ensuring that high standards continue to be maintained across the global recycling sector," Vyas said.