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Tuesday, June 19, 2018

Maritime Logistics Professional

March 7, 2018

Germany and Greece: Worst Vessel Dumpers

Image: NGO Shipbreaking Platform

Image: NGO Shipbreaking Platform

As in 2016, Germany and Greece top the list of country dumpers in 2017, according to new data released today by the NGO Shipbreaking Platform. 

German owners, including banks and ship funds, beached 50 vessels out of a total of 53 sold for demolition. Greek owners were responsible for the highest absolute number of ships sold to South Asian shipbreaking yards in 2017: 51 ships in total. 
 
Since the Platform’s first compilation of data in 2009, Greek shipping companies have unceasingly topped the list of owners that opt for dirty and dangerous shipbreaking.
 
Despite increased pressure for safe and clean ship recycling from Norwegian investors and authorities, in 2017, the number of Norwegian-owned ships scrapped on the beach was on the rise: 18 ended up in Alang, Gadani and Chittagong. The attempted illegal export of the TIDE CARRIER to Pakistan was stopped by Norwegian authorities following an alert by the Platform.
 
“In light of increased pressure from Scandinavian banks and investors, including Norwegian pension funds KLP and NBIM, and ongoing criminal investigations against the owners of TIDE CARRIER, Norwegian ship owners will have to ask themselves whether dirty profits are worth the reputational and financial risk that using beaching facilities now entails. Also, Danish container-giant Maersk will have an increasingly hard time justifying its U-turn back to the beach in Alang, as the yards there will not make it on the EU list of approved ship recycling facilities ”, comments Ingvild Jenssen.
 
The worst corporate dumper prize goes to Continental Investment Holdings (CIH), the Singapore-headquartered shipowning arm of Myanmar shipowner Captain U Ko Ko Htoo and parent company of Continental Shipping Line. 
 
The company, which is currently changing the composition of its fleet, sold 9 ships for breaking on the beaches in 2017. Four vessels ended up in Bangladesh, where in late December, during the demolition of CIH’s TAUNG GYI STAR, a worker died hit by a falling iron plate.
 
Ranked at second place, the container shipping giant Mediterranean Shipping Company (MSC) sold 7 vessels to Indian breakers. In the last nine years, MSC has profited from the sale of more than seventy ships for dirty and dangerous scrapping in Alang.
 
The Japanese owner Mitsui OSK Lines and the UK-based Zodiac Group follow closely with respectively 6 and 5 ships sold to South Asian yards. 
 
Zodiac received the worst dumper award in 2016 and sold 4 vessels to the yards in Chittagong despite being under scrutiny after a Bangladeshi worker sought compensation from the company for injuries incurred when breaking the EURUS LONDON.
 
Other known companies that in 2017 opted for substandard yards, rather than recycling their ships in a safe and clean manner, include: Hanjin Shipping, Hansa Mare Reederei, Peter Dohle Schiffahrts, Rickmers Reederei, Hansa Treuhand, Berge Bulk, Costamare, Quantum Pacific Group and Teekay. 
 
Teekay had promised to never sell to beaching yards again after a worker died breaking the ASPIRE in 2014 in Chittagong. That Berge Bulk was under the spotlight in December 2016, when it was feared that the Berge Stahl would end up on a beach, did not prevent the company from selling another 5 ships for dirty and dangerous breaking in 2017.
 
According to new data released today by the NGO Shipbreaking Platform, 835 large ocean-going commercial vessels were sold to the scrap yards in 2017. 543 were broken down – by hand – on the tidal beaches of Bangladesh, India and Pakistan: amounting to 80,3% of all tonnage dismantled globally.
 
TeekayCostamareHanjin Shipping