The global ship recycling industry is currently at a crossroads due to conflicting mandates under the Basel and Hong Kong Conventions. At the heart of the issue is a legal paradox: while the Basel Convention aims to curb the export of hazardous wastes, it inadvertently classifies operational ships as waste the moment their owners decide on disposal. In contrast, the Hong Kong Convention is designed to uphold international shipping norms by allowing ships to maintain their operational status until recycling commences.
This regulatory overlap creates significant uncertainties. For instance, discrepancies between the two frameworks could result in a ship being detained in port for failing to meet differing documentation and consent procedures. In some scenarios, a vessel cleared by its flag state under the HKC might still be penalized under Basel’s provisions if found in breach of its waste management rules. Such conflicts not only impede smooth operations but also discourage investments in ship recycling infrastructure in non-OECD states — a critical issue given the forecasted increase in end-of-life vessels over the next decade.
The industry now faces an urgent need for dialogue between regulatory bodies to establish clear, mutually supportive guidelines that secure both environmental safety and operational continuity.
Marex Media