BIMCO has announced the launch of an industry-led grouping of key stakeholders in the ship recycling sector to help speed up compliance for the upcoming Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, which comes into force in June 2025.

The new Ship Recycling Alliance comprises BIMCO, vessel recycling associations in the key nations of Bangladesh, India, Pakistan and Türkiye and leading cash buyers GMS and Wirana Shipping. Indian ship recyclers Bansal Group and Guideship have also joined the group.

Former International Maritime Organization head Nikos Mikelis, a key architect of the Hong Kong Convention, will lead the group as chairperson of the alliance.

“It is high time for an initiative like the Ship Recycling Alliance to be launched and put to work. We need an alliance that can formulate and represent the views of the international ship recycling industry and connect that with all other stakeholders involved,” said Mikelis.

The HKC was adopted in 2009 and is to enter into force on June 26, 2025, two years after all conditions were met in June 2023.

BIMCO estimates that in excess of 15,000 ships will need to be recycled over the next 10 years.

The need for compliant yards from main recycling states such as India, Bangladesh and Pakistan is therefore critical, says BIMCO.

It said that an important task of the new alliance will be to liaise with the IMO, the secretariat of the Basel Convention and nation states that are party to these organisations to seek legal clarity on the interaction between both conventions.

This includes assessing, considering and responding to any proposals for future amendments to the HKC. In addition, the alliance will provide support for the implementation and enforcement of the Basel Convention requirements for the management of waste from ship recycling processes.

BIMCO stated earlier this year that conflicting requirements set down in the Basel and Hong Kong conventions for ship recycling could leave shipowners in breach of one or the other set of rules. 

The Basel Convention is a UN treaty that has been in effect since 1992 and governs disposal of all types of hazardous waste.

Only a minority of shipowners have so far chosen voluntary Hong Kong Convention-compliant recycling. Therefore, co-ordinating the voices of the industries is crucial, says BIMCO.

BIMCO secretary-general and chief executive David Loosley said that part of the ship recycling industry was already trying to live up to the standards, ahead of it coming into force.

“To succeed in having our ships recycled responsibly and safely for people and the environment, we need all stakeholders to engage and step up pace. The Ship Recycling Alliance will connect stakeholders, advise regulators and create awareness among the public,” Loosley said. 

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