Ship Recycling
Berge Bulk has rigorous maintenance and repair processes to ensure that our vessels are used as efficiently as possible, for as long as possible. As we add newer, more efficient vessels to our fleet, we consciously retire those that are older, less efficient, and have reached the end of their economic life.
Ship recycling is the process of dismantling a ship at the end of its life. The process results in minimal waste as more than 90% of the ship’s material is either reused or reconstructed.
- Achieved in 2022…
- ACHIEVED — all end-of-life vessels are recycled at yards that adhere to the Hong Kong Convention.
- ACHIEVED — 100% of fleet certified with IHM Hong Kong Convention standards.
- ACHIEVED — 100% of EU-calling vessels certified with IHM EU Ship Recycling Regulation standard.
- ACHIEVED — all vessels recycled are audited by a Recognised Organisation (RO) throughout the recycling process: we’ve contracted Lloyds Register (LR) to audit shipyards at the beginning, middle and end of the recycling process.
Berge Bulk’s ships recycling policy involves carefully selecting ship recycling yards that meet international standards for safety and environmental responsibility.
In 2022, we sent three of our ships to be recycled at recycling facilities that comply with the Hong Kong International Convention for the Safe and Environmental Sound Recycling of Ships (HKC). The ship recycling facilities underwent external auditing by a Recognised Organisation (RO), to ensure compliance with the convention throughout the recycling process.
2022 Ship Recycling Activity
| SHIP | HKC Certified? | # Recycling audits/ship | # Man hours | # Injuries | # Fatalities | % of LDT† recycled/reused |
|---|---|---|---|---|---|---|
| Berge Aoraki | YES | 3 | 71,630 | 0 | 0 | 100% |
| Berge Arctic | YES | 3 | 69,850 | 0 | 0 | 100% |
| Berge Apo* | YES | TBC | TBC | TBC | TBC | TBC |
| TOTAL | 3 | 6 | 141,480 | 0 | 0 | 100% |
Commenced in December 2022, data will be available in 2023 responsible business report.
Our Approach
Berge Bulk has mapped criteria and activities to comply with conventions and regulations.
Criteria for Yard Selection
Our ship recycling policy has always been stringent, requiring that any shipyards involved in recycling Berge Bulk’s vessels must be authorised by competent authorities in accordance with national laws and regulations, as well as certified to international standards of environmental management (e.g. ISO 14001) and health and safety (e.g. OHSAS 18001, ISO 30000, ILO) standards. We ensure that proper documentation is provided by the shipyards before initiating recycling activities. Furthermore, a statement of completion is obtained at the end of the dismantling process to confirm that the recycling was carried out in accordance with our policy and standards.
Our sales contracts include requirements that obligate buyers and shipyards to conduct safe and environmentally responsible recycling. The contracts stipulate the use of ship recycling facilities that have obtained certifications under ISO standards, and that have been recognised by Classification Societies.
In 2022, we completed the recycling of Berge Aoraki and Berge Arctic at shipyards that meet the international standards listed above and adhere to the Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships (HKC). The shipyards provided monthly reports assuring that the recycling process was conducted safely and with environmental responsibility. Upon completion of the recycling process, it was confirmed that no injuries or fatalities occurred, and that all hazardous materials were appropriately recycled or disposed of for both ships. We also began the recycling of Berge Apo in December 2022 at a HKC approved shipyard — this will be completed in 2023 and details will be disclosed in our 2023 Responsible Business report.
Inventory of Hazardous Materials Certification Status
| 2022 STATUS | |
|---|---|
| IHM Hong Kong Convention: | 100% of fleet certified |
| IHM EU Ship Recycling Regulations: | 100% of EU-calling vessels certified |
Certifying our Inventory of Hazardous Materials
Berge Bulk ships have been maintaining an approved Inventory of Hazardous Materials (IHM) since 2012, and we require all our vendors to provide Material Declarations and Supplier’s Declaration of Conformity.
The IHM is essentially an inventory of all the materials present in a ship’s structure that may pose a risk to human health or the environment. This inventory is kept up-to-date throughout the ship’s operational life, and its compliance with relevant regulations is confirmed by a classification society through certification.
Berge Bulk obtained certification for all its fleet vessels in 2022 in accordance with the IHM Hong Kong Convention standards. For vessels trading on European Union routes, Berge Bulk ensured that their IHMs were also certified under the IHM EU Ship Recycling Regulation (SRR) standards. The certifications are issued by the respective classification society of each vessel. Inventory records are regularly verified to ensure they are up-to-date and accurate.
When a ship is about to be recycled, any additional hazards in stores and waste are included in the records. The document is then used by authorised recycling facilities to create a safer and more environmentally friendly decommissioning plan for the ship.
Audit by a Recognised Organisation
The process of recycling a ship can be complex, requiring careful attention to ensure that it is done in an environmentally friendly and responsible manner. To accomplish this, we have contracted Lloyds Register, a Recognised Organisation, to carry out audits at shipyards during each stage of the ship recycling process.
These audits are conducted at the start, middle, and end of the process — ensuring that every stage of the recycling process meets our standards for responsible recycling practices. The auditors work closely with the shipyards to establish a collaborative relationship, where they receive ongoing updates throughout the process, not just during the audits.
As part of the audits, the auditors conduct a thorough assessment of the shipyards’ processes and procedures to ensure that they are adhering to the recommendations outlined in the IMO Resolution MEPC.210(63) Guidelines for Safety and Environmentally Sound Ship Recycling. Additionally, the auditors provide guidance to the shipyards on how to adopt and implement the best practices from HKC, ISO, and relevant local environmental and safety laws. Furthermore, the auditors assist the shipyards in developing and implementing Ship Recycling Facility Plans to ensure that they have a comprehensive and effective plan in place for the recycling of the ships.
Through this process, we ensure that our shipyards are operating in a manner that is safe, environmentally friendly, and compliant with all relevant laws and regulations. The involvement of auditors in the process ensures that our standards for responsible ship recycling are consistently met, and that our ships are recycled in a manner that is sustainable for the environment and the communities surrounding the recycling yards.
“What happens to ships at the end of their lifetime is an important global issue, with major consequences for safety and the environment.”Kitak Lim
Secretary General, IMO