The shipping industry can’t survive without scrapping ships on Asian beaches. The industry isn’t ready for a ban of beaching, says the Secretary General of the Asian shipowners in an interview with WPO.
Photo: IMO

SINGAPORE: In spite of the fact that the conditions on the scrapping beaches in countries such as India, Pakistan, and Bangladesh serve as an embarrassment to the business, the shipping industry depends on beaching.

That message is repeated again and again during the interview with the Secretary General of the Asian Shipowner’s Forum:

“If you closed all the beaching facilities in the world, there simply wouldn’t be enough scrapping capacity for all the ships that need to be scrapped these years,” explains Yuichi Sonoda, who represents shipowners from India in the west to Taiwan in the east – Australia to the south and Japan in the north.

“You have to remember, we represent shipping companies – large and small – with different interests, and many of them simply wouldn’t be able to afford sending their obsolete ships to be scrapped in China,” says the Secretary General.

“The pictures and reports from the beaches are horrible and embarrassment to the industry. We have to act on the critique, because we can’t afford this – not in regards to humans nor the environment.”

Yuichi Sonoda, Secretary General, Asian Shipowners’ Forum

He explains that there are basically two places to scrap today – the expensive, more environmental one in China, and the cheap, heavily criticized one on the beaches of India, Pakistan, and Bangladesh, where shipping companies can sell the remains of their ships at a higher price.

Why EU scrapping rules became a compromise

“Many of our smaller members, in particular, just can’t afford to sell at a lower price – and I’m sure that goes for some of the European shipping companies as well,” says Yuichi Sonoda.

Maersk previously announced that the carrier loses USD 1 million per ship when chosing to scrap in China. That’s why the Asian Shipowners’ Forum (ASF) is relieved that the EU, in its new regulations, approved June 27th this year, opted not to ban the use of beaching:

“I’m very pleased that they decide to remove that part of the original proposal. The consequence of that could have been the closure of beach scrapping facilities, which would have meant we’d be seeing ships dumped at sea instead.”

Need for change

WPO meets the ASF Secretary General at the organization’s humbly decorated offices in downtown Singapore to get a comment on the new EU initiative, and to get a general idea of the asian shipowers’ attitude toward scrapping, as they’re often given a large part of the blame in the European debate about the critical conditions at the scrapping locations.

They said no to more responsible scrapping

“There’s a need for change,” stresses the Japanese Secretary General, adding:

“The pictures and reports from the beaches are horrible and an embarrassment to the industry. We have to act on the critique, because we can’t afford this – not in regards to humans nor the environment.”

Asian Shipowners’ Forum (ASF)

The topic is discussed frequently at ASF meetings, says Yuichi Sonoda, but the members are divided on the matter:

“We’re doing a lot to influence our members to turn them away from beaching, but the plain truth is that a lot of them can’t afford to do so. So we’re pleased with the approved version of the EU regulation and we hope that it might lead to a ratification of the Hong Kong convention,” says Yuichi Sonoda, referring to the fact that ASF was highly committed to the convention that was passed by the IMO in Hong Kong in 2009m but which has so far only resulted in legislation in Norway.

“I hope and believe that the EU will now encourage its member states to support the Hong Kong convention, as that’s the only way to really do anything about this problem,” he says, and refers to the fact that the Hong Kong convention will help countries with scrapping beaches to improve their facilities without losing their business.

“China can’t handle all ships, so we have to encourage India, Pakistan, and Bangladesh and the other countries to maintain some scrapping locations, which we can then help to perform the scrappings in a more humane and environmental manner,” says Yuichi Sonoda.

He admits that no Asian countries have taken initiative to ratify the Hong Kong conventioen either, not to mention signed it, but Yuichi Sonoda hopes that the EU initiative will now push the first domino to get the process going.

“The major countries are always tip-toeing around each other to see who will move first in matters like these. So I hope this EU initiative will add some momentum to the issue,” says the Secretary General.

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“It’s time for the EU to ratify the Hong Kong convention”

EU scrapping agreement is ready