Asian Shipowners’ Association rejects EU proposal on paying ship recycling licenses

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The proposal by the European Commission (EC) to compel ships, regardless of flag, to pay for European Union (EU) ship recycling licenses when calling at EU ports would “embarrass shipowners worldwide”, Asian Shipowners’ Association (ASA) has criticised.

ASA, in a statement released on Thursday, supports the recent comments of International Chamber of Shipping (ICS) and European Community Shipowners’ Association (ECSA) against any establishment of a ship recycling fund.

“ASA will further engage in positive dialogue and cooperation with both organisations,” ASA stated.

The EC has proposed the money that visiting ships would have to pay into a proposed EU Fund, including those flying a flag of non-EU nations, would only be returned at the end of the vessel’s working life and only on condition that the ship is recycled at a yard approved by the EC.

“ASA believes that any charges without specific services rendered to the ship would not be allowable on international law,” ASA commented.

The technical guidance note under the EU regulation shows that a recycling yard located in Southeast Asia where about 70% of world demolition is conducted will not be allowed to be included in the EU approved yard list.

“This is neither a realistic nor a practical approach. ASA is concerned about recyclers losing positive mind for improving their facilities and practices, and sincerely hopes the EU list to be utilised effectively to encourage their activities for improvements,” ASA said.

The association added that the EU should concentrate its efforts on getting EU member states to ratify the Hong Kong Convention, and to recognise the efforts being made by scrapyards in Asia to gain certification in compliance with IMO standards.

Posted 14 July 2016

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Lee Hong Liang

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Asia Correspondent Lee Hong Liang has joined Seatrade as its Asia Correspondent. Based in Singapore, he will provide a significant boost to daily coverage of the Asian shipping markets, as well as bring with him an indepth, specialist knowledge of the bunkering markets. Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and the ability to write hard news and feature stories.

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