Implications of the Hong Kong Convention From the Perspective of Shipping Companies

The way ships are currently scrapped in the Asian subcontinent poses a significant danger to both human health and the environment. As a driver for positive change in the ship recycling industry, the International Maritime Organization adopted the International Convention for the Safe and Environmentally Sound Recycling of Ships in May 2009 where shipping companies plays a vital role. The Thesis aims to identify and analyse the impacts of the convention on the ship recycling industry and to provide recommendations for a better implementation of the convention from the view of shipping companies. This was achieved by analysing the requirements the convention puts on shipping companies, analysing the ship scrapping policies of shipping companies, and analysing the expected implementation challenges of the convention. In order to conduct a comprehensive analysis, key players in the shipping industry was interviewed and information from secondary information sources such as Clarksons World Fleet Register was gathered. It was found that shipping companies generally have a limited view of the requirements the convention puts on them. Further, the ship scrapping policies of the shipping companies are not expected to go through drastic changes in the future, although some shipping companies might have to change their preferred recycling location. The biggest implementation challenge was found to be the entry into force requirements of the convention. The entry into force requirements are currently far from met and the convention is dependent on the signature from at least one major ship scrapping nation and at least one major flag state in order for it to enter into force. Recommendations have been provided based on the analysis and the significance of the research findings has also been highlighted.Faculty of Social Science and Business / Plymouth Business Schoo