Bangladesh tanker explosion exposes loopholes in global ship scrapping rules

Six workers died and four were seriously injured in an explosion on the tanker MT Suvarna Swarajya on September 7, 2024, in Bangladesh. The incident highlights significant gaps in global and national regulations and underscores the lack of oversight in the shipbreaking industry, according to Human Rights Watch (HRW). Shipowners often exploit legal loopholes through intermediaries to send vessels to dismantling yards in Bangladesh, which lack adequate environmental and labor safeguards.

The MT Suvarna Swarajya, formerly owned by Shipping Corporation of India, was sold to Last Voyage DMCC, a subsidiary of Best Oasis, in March 2023. Last Voyage DMCC then sold it to SN Corporation of Bangladesh for dismantling, despite the company’s poor safety record. SN Corporation has killed at least 14 people and injured 22 since 2010. Julia Bleckner, senior researcher at HRW, noted: “The tragic explosion at SN Corporation underscores the dangers of an international regulatory system that places industry profits above worker safety.”

The explosion occurred at SN Corporation’s Unit-2 shipyard, which recently received a certificate of compliance from Nippon Kaiji Kyokai under the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships. Although the convention officially comes into force on June 26, 2025, shipyards have already begun obtaining voluntary certifications. However, HRW and other organizations say the convention provides insufficient environmental and safety protections.

After the explosion, Bangladeshi authorities closed the yard indefinitely and launched an investigation. The Department of Environment suspended the yard’s environmental permit and demanded an explanation from SN Corporation. Previous incidents and unsafe conditions at the yard have raised serious concerns among workers. With insufficient protective measures and low wages, workers continue to face significant risks.

The multinationals involved in the MT Suvarna Swarajya should be held accountable, HRW said. If found liable, companies such as SN Corporation, Best Oasis and Shipping Corporation of India should cover medical expenses and provide compensation to affected families. Shipping companies use cash buyers to circumvent international regulations, leading to harmful dismantling practices in South Asia. The Bangladeshi government must enforce existing regulations and improve worker safety standards. Stronger international regulations are crucial to curb exploitative practices in the shipbreaking industry.

(Based on information from the agency.)