European Union Sanctions Explained updated 17 March 2011

European Union Regulations on Democratic Republic of Congo

EU Regulations on Belarus

EU 180 Ship Recycling Seminar

The commercial and legal issues involved in selling ships for recycling are complex and far-reaching. The main concern is the safety of workers and the protection of the environment when ships are recycled, as well as ensuring that proper procedures are followed regarding worker rights and the further downstream management of hazardous and other wastes. The IMO Hong Kong Convention, which will enter into force in June 2025, and its accompanying guidelines, as well as the Basel Technical Guidelines on ship recycling, aim to ensure that ships are recycled in a safe and environmentally friendly manner. The HKC also requires that contracts between ship owners and recycling yards are in place before any recycling work is undertaken. Furthermore, certain legal requirements must be met in order for ships to be recycled, such as obtaining the necessary certificates and permits. Finally, the recycling process must be conducted in a manner that complies with international standards and conventions. Shipowners with ships flying the flag of an EU Member State face additional challenges of recycling those vessels in a manner that complies with regional legal requirements and environmental standards. This recycling can only occur at approved recycling facilities included in the EU list, leaving the shipowners with limited recycling options. As a result, those shipowners are facing additional difficulties, such as a ban on going to facilities in no-OECD States, even if any would be on the EU list, depending on the location of the ship when it becomes end of life. In an industry operating continuously at the global level, this creates major legal uncertainties and a serious distortion of competition between ships flying the flag of an EU Member State and other ships. Watch the BIMCO movie: “Ship recycling: Time for Change” https://www.bimco.org/trending-topics/recycling

Russian coal exports fall 7.0% as EU sanctions bite, tonne miles up

As a part of European Union sanctions against Russia, the block banned coal imports from Russia starting 10 August. About two months have passed and Russia has struggled to redirect its coal exports, with export volumes down 7.0% y/y in this period and down 5.0% year to date.

COVID-19 affecting new inventory of hazardous materials requirements in December

From 31 December 2020, all ships of 500 GT and above – regardless of the flag they are flying – will be required to carry an inventory of hazardous materials (IHM) when calling a port or anchorage of a country that is a member of the European Union (EU) or European Economic Area (EEA). Failure to do so may result in penalisation.

EU clean oil product imports up 18.3% y/y on increased Asian volumes

Excluding intra-EU trade, the European Union’s average monthly clean oil product imports amounted to 10.0 million tonnes in 2019 but declined to 9.3 million tonnes in 2020 and 2021. Due to the high import volumes in July to October, the 2022 year-to-date average monthly volumes have reached 10.3 million tonnes, exceeding 2019 volumes.

Revision of SHIPMAN begins with focus on shipmanagers’ responsibilities under the EU Emissions Trading System

The drafting team tasked with updating BIMCO’s 13 year old SHIPMAN shipmanagement agreement will begin by preparing a free standing clause addressing the shipmanagers’ role in complying with emissions trading systems such as the EU ETS. ETS is seen as a critical issue by shipmanagers who will need to agree with owners how the surrender of emissions allowances for ships trading to the EU after 2024 is to be handled.

Iran - Trading restrictions

EU tanker import tonne mile demand up 12% as ships avoid Red Sea area

In 2023, sanctions on Russian oil exports by the EU caused a major shift in tanker trades and a 10% increase in average sailing distances for EU tanker imports. Now, attacks on ships in the Red Sea area have caused average sailing distances to increase a further 16% and tonne mile demand to increase 12% despite falling volumes.