Evergreen to Launch Arbitration against Buyer of Ever Unison

Evergreen Line is planning to launch arbitration proceedings against the buyer of its containership Ever Unison, which was supposed to be dismantled in an environmentally-friendly way.

The ship was sold for green recycling at a yard compliant with the 2009 Hong Kong Convention (HKC), according to Evergreen.

Responding to allegations from the NGO Shipbreaking, which named Evergreen Line as one of the worst corporate dumpers in 2019, the Taiwanese shipping company told World Maritime News that the cash buyer of the vessel breached the obligation of the Memorandum of Agreement (MOA).

According to the latest report from the NGO, Evergreen Line sold at least 11 ships for scrap at breaking yards in Bangladesh and India.

“Evergreen is also considering to seek an injunction from the High Court to prevent vessel being demolished at its current location,” the company statement further reads.

Specifically, the company said that it has added a liquidated damage clause into the memorandum of agreement (MOA), which makes it carry heavier weight and has a deterrent effect for any buyer who is non-compliant.

The 1996-built Ever Unison was sold for recycling in Bangladesh in August 2019, according to the data from VesselsValue.

The valuation website shows that the 5,364 TEU Post Panamax boxhsip featuring 24,039 light displacement tonnes (LDT), the weight of the ship excluding cargo, fuel, water, ballast, stores, passengers, crew, sold for 372 USD per LTD.

“Notwithstanding that, if it is found that recycling of any of the company’s vessels does not fully comply with the stated standards, Evergreen will take all necessary actions to safeguard its values of its green recycling policy,” Evergreen said in a statement

Evergreen Line said that its ship demolition and recycling policy requires the shipbreaking yard selected by all buyers of its decommissioned vessels must be not only ISO certified (ISO 9000, 14001, 18001 or 30000), but also implement class approved standards of the HKC.

The convention covers the design, construction, operation and maintenance of ships, and preparation for ship recycling in order to facilitate safe and environmentally sound recycling, without compromising the safety and operational efficiency of ships.

It aims to enhance safety in the ship recycling industry which still remains one of the most dangerous jobs in South Asia amid poor working conditions for the workers.

Back in 2018, the Norwegian Central Bank informed that shipping companies Evergreen Marine Corp (Taiwan), Korea Line Corp, Precious Shipping PCL and Thoresen Thai Agencies PCL were excluded from the Norwegian Government Pension Fund Global (GPFG).

The decision was made on the recommendation of the Norwegian Council on Ethics on the ground of the companies’ beaching practices.

Namely, the shipping companies in question have been sending their ships to Bangladeshi and Pakistani beaches for demolition thus contributing to severe environmental pollution and supporting serious human rights violations as these regions are infamous for their poor working conditions, the ethics council said.

World Maritime News Staff