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Lloyd's Shipping & Trade Law

The Hong Kong Convention on the recycling of ships

The management of wastes and in particular that of hazardous wastes is a pressing environmental issue. Following several decades during which developed states have used developing states as dumping grounds, a number of international policy and legal arrangements have been put in place to ensure that hazardous wastes are not simply dumped wherever it is cheaper or more convenient but that they are handled in a suitable manner.

The ship-breaking industry is predominately located in developing states. India, Bangladesh, Pakistan, China and Turkey are some of the most important ship-breaking countries. The existence of ship-breaking operations is essential for the livelihoods of thousands of families from the most deprived parts of these countries. Notwithstanding the physical risks the industry poses to workers, it remains attractive to them because employers can afford higher daily rates than other sectors due to better profit margins. Ship-breaking yards in developing states offer better prices than operations in developed states for a number of reasons, among which the lack of environmental regulation is one. However, this comes at a price: one study suggests a range between one death of a worker per day to official estimates of 50 deaths of workers per year. 1 It is also well documented that ship-breaking operations in non-OECD countries do not constitute environmentally sound management. 2 Accidents, damage to workers’ long-term health as well as long-term contamination of the environment are the normal consequences of the industry. The issues can broadly be divided in three categories:

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