GMS, the world’s leading buyer of ships for recycling, concludes its first-ever Hong Kong Convention compliant recycling deal with a Korean shipowner
The 149,322–dwt bulk carrier Keoyang Orient (built 1997) has been sold by its owner H-Line Shipping Co. Ltd on the condition the vessel was recycled according to the standards set out in IMO’s Hong Kong Convention. A spokesperson for H-Line Shipping said, “It was not an easy decision to consider green recycling for the first time as Korean shipowner but this is the only right way since shipping needs to become greener as part of ESG/CSR to support sustainable shipping.”
Commenting on the deal, GMS trader Gyungbae Gil says, "GMS is delighted to help H-line Shipping recycle their vessel Keoyang Orient in a safe, clean and sustainable way. We believe H-Line is the first Korean owner to have opted for Hong Kong Convention (HKC) compliance and both welcome and anticipate more transactions of this nature in the months and years to follow.”
The move by H-Line Shipping is being seen in the wider context of a shift towards raising recycling standards across the whole of South Asia. At India’s recycling hub of Alang, 95 recycling yards are now HKC compliant and a further 10 Bangladesh yards are in the process of application. A call for even more green recycling yards has been made recently by the Asian Shipowners Association in anticipation of scrap volumes almost doubling next year to around 45.5m dwt, according to figures from leading brokers.
“This sale represents another important milestone in the transition to cleaner, safer ship recycling,” says Mr Gil. “We applaud H-Line Shipping for embracing the HKC and are honoured to have played a role.”