China Bans Scrapping of Foreign Ships at its Yards

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In an unexpected turn of events, China has decided to ban foreign-flagged vessels to be dismantled at its shipyards from the beginning of 2019.

What happened?

According to an official government announcement, from the beginning of 2019, China has decided to ban foreign-flagged vessels to be dismantled at its shipyards.

However, Chinese-flagged ships will still be allowed to be recycled internally at its local shipyards but state grants were halted last year and it is expected that even Chinese vessels are expected to head to Indian shipyards to get dismantled.

Curb pollution

This drastic step comes in the wake of China struggling to address its pollution problem for the past couple of years, restricting the import of waste products, under its Prevention and Control of Solid Waste Pollution Law (2005).

Moreover, twenty four types of solid waste in four categories were added on the Ban List as of 1 January, 2018. The regulations are expected to be amended again by the end of 2018 and the end of 2019.

Ships to head to Indian yards

As a result of these restrictions in place, numerous Chinese shipyards have not taken licences for ship recycling. This move is expected to turn shipowners around the world towards the Indian ship recycling facilities in Alang, especially following their upgrade in recent years to meet the requirements.

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Source: World Maritime News

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