Ship Recycling – Understanding the Hong Kong Convention

Figure 1: Applicability for ships and recycling facilities

There is an expectation that non-party flagged ships apply the requirements of the Convention, as such ships would be liable for inspection when calling at ports within the jurisdiction of party states to ensure the principle of “no more favourable treatment” remains satisfied.

Non-party flagged ships must have a Statement of Compliance on Inventory of Hazardous Materials (SoC IHM) from their Flag Administration or RO before sailing to a State which is party to the Convention.

2. Requirements for ships 

Ships flying the flag of a State which is party to the Convention are required to maintain control over hazardous materials during the design, construction, operation and maintenance of the ship. The installation or use of hazardous materials is prohibited and/or restricted throughout the operational lifecycle of the ship.

1. Inventory of Hazardous Materials (IHM)

   Ships will be required to carry an Inventory of Hazardous Materials (IHM) guided by MEPC 269(68) identifying the location and approximate quantities of the hazardous materials held on board.

   The IHM consists of three parts, with Part I developed and maintained over the life of the ship, while Part II and Part III are developed before the ship is recycled. IHM Part I, II and III will be verified by the Flag administration and/or a Recognised Organisation.

   The successful completion of an initial survey to verify IHM Part I would result in the issuance of the International Certificate on Inventory of Hazardous Materials (ICIHM), valid for a period not exceeding 5 years.

2. Preparation for recycling of the ship

   Shipowners have a responsibility to notify their Flag State of the intention to recycle a ship in order to initiate the survey and certification requirements.

   In preparation for recycling a ship, in addition to a properly maintained and updated IHM Part I, IHM Part II and Part III would have to be developed and verified by the Flag State and/or designated Recognised Organisation.

The successful completion of final survey involving the verification of IHM Part I, II and III would result in the issuance of the International Ready for Recycling Certificate (IRRC), valid for a period not exceeding 3 months.

In selecting the ship recycling facility, the members will have to exercise due diligence to ensure that the facility is authorised by its competent authority and that it holds a valid Document of Authorisation for Ship Recycling (DASR).

3. Requirements for Ship Recycling Facilities 

Ship recycling facilities should be designed, constructed and operated in a safe and environmentally sound manner in accordance with the regulations of the Convention. The authorisation of ship recycling facilities is undertaken by a Competent Authority designated by the Flag Administration.

1. Authorisation of Ship Recycling Facility 

   To obtain authorisation, the ship recycling company should develop and submit to the designated Competent Authority a Ship Recycling Facility Plan (SRFP). The competent authorities would be guided by MEPC.211(63) when issuing a Document of Authorisation for Ship Recycling (DASR).

2. Preparation of a Ship Recycling Plan (SRP)

   Prior to the intended recycling of a ship, the ship recycling facility is required to prepare a ship specific Ship Recycling Plan (SRP) that takes into account the guidelines set out within MEPC.196(62) and obtain approval of the SRP from the designated Competent Authority.

3. Reporting requirements 

   The recycling facility has a responsibility to notify the Competent Authority within their jurisdiction as below:

   • Initial notification of the intent to recycle a ship together with a draft SRP.

   • Follow up notification of the planned start of recycling after the ship is in receipt of the International Ready for Recycling Certificate (IRRC).

   • On completion of recycling, compile and report the Statement of Completion.

While the Convention will be the guiding instrument for the maritime industry regulating the recycling of ships, the Basel Convention, regulating the transboundary movement of hazardous waste, deems an end-of-life ship as hazardous waste. As it stands today the interplay between the HKC and Basel Convention is a cause of uncertainty for the maritime stakeholders, prompting the IMO to issue a provisional guidance HKSRC.2/Circ.1 on the implementation of the Hong Kong and Basel Conventions.

It should also be noted that the European Union has its own regulations related to ship recycling and waste. EU flagged ships will also have to take the requirements of Regulation (EU) 1257/2013, on ship recycling (EU SRR) and Regulation (EU) 2024/1157, on the shipment of waste (EU WSR) into account, during the operational, as well as end-of-life periods of the ship.

As regulated ship recycling gains momentum, some countries may introduce their own additional regulations and requirements that must also be considered. It is therefore recommended that members seek advice from the relevant Flag administration, and/or designated Recognised Organisation, for further understanding on the expectations and obligations in relation to the recycling of their ships.