Tag Archives: shipbreaking

Bangladesh and the HKC: Standards for Ship Recycling

Shipbreaking has always been dirty and dangerous work. For years it was performed under inhospitable working conditions, in countries where legal protection for workers was not strong. Then the Hong Kong Convention (HKC) for the Safe and Environmentally Sound Recycling of Ships became effective in June of 2025. That changed things. Now there is clear international law marking how recycling yards must operate if they want to handle the world’s discarded ships.

Bangladesh is the largest ship-recycling state, with many facilities, and much tonnage recycled into scrap steel and other by-products. The government has drafted new Ship Recycling Rules 2025, to assure that their recycling yards are compliant with both Bangladesh law and with the HKC. And these rules have been receiving some criticism.

The opinion piece linked below, by a prominent Bangladeshi professor and ship-recycling expert, debunks that criticism. It seems that Bangladesh has managed to thread the needle, creating a legal structure that will support compliant shipbreakers, while giving noncompliant facilities a chance and a time window to become compliant. And it’s done in a way that will not allow the noncompliant yards to persist in a rogue fashion.

The law should be welcomed by the shipping community. Bangladesh is a preferred location for shipbreaking because of its ideal geographical setting and better cost profile. A rising tide of scrapping is coming, because of the need to improve environmental characteristics of ships, and an oversupply created by a newbuilding splurge. Bangladesh needs to be included in the roster of decent places to recycle ships.

Published Jan 11, 2026 2:30 PM by Prof. Dr. Ishtiaque Ahmed

https://maritime-executive.com/editorials/op-ed-bangladesh-s-phased-hkc-rollout-makes-sense-if-enforced

More than 80% of box and bulk ships to fall in lowest CII ratings

According to this consultant, many ships will need to be recycled as a result of the International Maritime Organization (IMO)’s new carbon intensity indicator (CII) rule.

And there isn’t enough recycling capacity to handle them all. Far East recyclers have the most capacity, as we know. But these yards are not certified to recycle EU ships, that must be recycled at a yard following the Waste Shipment Regulation of the EU. There are only six such yards in the EU; Turkey, an OECD state may also be used.

Recycling ships has been fraught with problems for years, mostly of the social kind; but now yards will be held accountable environmentally also.

It’s a good thing for the long run, but planning is essential if you are wanting to recycle a ship.

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Paul Bartlett | Jan 25, 2023

More than 80% of box and bulk ships to fall in lowest CII ratings

Managing the decline – in container shipping

A good summary as of the beginning of October 2022. Drewry research is well executed and they have thoughtful analysis.

There is an oversupply of container shipping capacity coming. There are so many newbuilds coming. And the amount of container freight seems to be leveling off, if not declining. And congestion seems to be declining, in at least the places that were bad over the past two years. Currently port congestion is responsible for only about 7% of effective capacity loss, down from as high as 17%.

Drewry’s position is that liner firms have the ability to control the supply of shipping, but they need to be careful to do it right. But the thinking is that the firms themselves cannot completely bridge the gap between supply and demand. Missed sailings can help, and so can phasing out old ships faster. that would also be a benefit for the climate change issues we face.

Drewry – Weekly Feature Articles – Managing the decline

Drewry – Weekly Feature Articles – Managing the decline