Vessel Recycling Policy
SMT are committed to safer and more accountable ship recycling practices through the adoption of responsible ship recycling policies.
We require all Buyers of our vessels to strictly adhere to the International Maritime Organisation’s (IMO) Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships 2009 (HKC), when recycling vessels at the end of their operational life. HKC is widely accepted as the benchmark for responsible vessel recycling.
It is our policy to ensure that when any of our vessels are disposed of recycling does not pose any unnecessary risks to human health, safety and to the environment.
Vessel recycling has always played an important part in SMT’s strategic and operational planning. With older vessels included in the fleet, SMT has, by prioritizing maintenance and with a system of good operating conditions, extended the useful economic life of many vessels.
The decision to send a vessel for recycling is based on its obsolescence. We consider many factors other than just the value of the vessel, in order to ensure that the dismantling does not endanger people and the environment and is always in full compliance with the regulatory landscape.
When our vessels are ready for recycling, SMT exercises due diligence by specifying in the MOA that the Buyers select a yard that has a Statement of Compliance with HKC, and by preparing all vessels for recycling in a sustainable way. This way, we seek to ensure that only facilities that comply with the best international industry practice are used.
Where possible we salvage and re-use equipment from ships to be recycled.
In order to limit the environmental impact of a ship on her last voyage SMT make an effort to ensure an efficient final voyage to the destination of the recycling, avoiding vessels travelling empty over long distances.
Even when recycling is not the intended purpose of the sale, we include provisions in our MOAs to regulate how the vessel should be disposed of, providing that Buyers must adhere to responsible recycling practices and/or that the vessel must be recycled in accordance with HKC or equivalent.
Regardless of where they are flagged, all our vessels carry on-board an inventory of hazardous materials (IHM) that form part of the ship’s structure and equipment, operationally generated hazardous wastes and stores on board This is a requirement under The European Union Ship Recycling Regulation (EU) No 1257/2013 (EU SSR) which is the only legal framework currently in force dedicated to regulating ship recycling. It is mirrored in HKC which is yet to be ratified.
SMT welcome the news that HKC will be in force in two years’ time and share the expectation in the industry that this will bring a review of EU SSR and an alignment of the two regimes.