The global ship recycling industry must now focus on ensuring that responsible recycling standards are implemented consistently across all markets while creating a clearer and more aligned regulatory framework for shipowners, according to Wirana Shipping, one of the world’s oldest and largest cash buyers of vessels for recycling.

The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC) has established a common international framework for safer and more environmentally responsible recycling. It has strengthened requirements around worker training, hazardous material management, health and safety procedures, environmental protection and operational oversight, with many recycling facilities investing significantly to meet these standards.

More than 100 facilities across the Indian subcontinent had already achieved HKC compliance before the Convention entered into force, demonstrating that much of the industry had voluntarily embraced higher standards. Progress has not been uniform across all recycling markets, however, with some facilities still working towards certification.

While compliant facilities continue to invest in maintaining these standards, current commercial pressures across the recycling market are being driven less by compliance costs and more by fierce competition for a limited supply of end-of-life vessels. Strong demand has led some recyclers to bid aggressively for available ships, squeezing margins across the sector.

The next challenge is improving alignment between the international and regional regulations governing end-of-life vessels, says Wirana. Depending on a ship’s flag, ownership, location and intended recycling destination, owners may need to navigate the Hong Kong Convention, the EU Ship Recycling Regulation, the Basel Convention and related waste shipment rules.

Hitesh Vyas, Vice President Middle East and Green Recycling Coordinator at Wirana Shipping, said: “The Hong Kong Convention has provided the industry with a much stronger framework for safe and environmentally sound ship recycling, and it is encouraging to see so many facilities investing to meet those standards. The commercial challenges the market is experiencing today are largely the result of aggressive bidding for a limited number of vessels rather than the standards themselves. As market conditions change, it is important that the industry continues to uphold the progress that has already been made.”

He added: “The industry broadly agrees on what responsible ship recycling should look like. The next priority is creating greater alignment between international and regional regulations so owners have greater clarity throughout the recycling process. Consistent implementation, effective enforcement and a level playing field will be essential to ensuring that high standards continue to be maintained across the global recycling sector.”