← Go back

Hapag-Lloyd AG

1.5 - Company logo
1.1 - Primary company name

Hapag-Lloyd AG

1.3 - Head office location

Hamburg Germany

1.4 - Website

https://www.hapag-lloyd.com

1.6 - Number of ships operated

239

1.6.1 - Number of ships owned

110

1.6.3 - Number of ships chartered

119

1.8 - Please provide a brief introduction to your company

239 modern ships, 12,0 million TEU (Twenty-foot Equivalent Unit) transported per year, around 13,000 motivated employees in 388 offices in 129 countries. Hapag-Lloyd is a leading global liner shipping company and a powerful partner for you. Hapag-Lloyd offers a fleet with a total capacity of 1.7 Million TEU, as well as a container stock of approximately 2.6 million TEU including one of the world’s largest and most modern reefer container fleets. A total of 121 liner services worldwide ensure fast and reliable connections between more than 600 ports on all the continents. Hapag-Lloyd belongs to the leading oceancarriers for the trades Transatlantic, Middle East, Latin America and Intra-America.

1.9 - What is your overall approach / positioning on ship recycling?

As early as May 2014, Hapag-Lloyd’s Executive Board adopted an internal policy on ship recycling stipulating that ships which are no longer needed must be recycled in a safe and environmentally friendly manner. Accordingly and in line with the IMO Hong Kong Convention, we are fully conscious of the hazards involved in Ship Recycling and ensure that procedures are in place to ensure a sustainable, safe and environmentally sound recycling of our old ladies. We look at Healthy and Safe working conditions for the workers with Zero Pollution in the process. All our vessels going for recycling are provided with an Inventory of hazardous materials (IHM) so as to assist the Yard to prepare a Ship Recycling Plan (SRP) aiming at a safe dismantling. In addition, Hapag-Lloyd has long equipped its newbuilds with an inventory of hazardous materials (IHM) that are either used or installed on the vessel. With this internal guideline, the company was ahead of the European Union, which only started obligating shipping companies to outfit all newbuilds with an IHM at the end of 2015. As for our existing fleet, many have been provided with an IHM and the process is ongoing speedily to achieve full compliance by 2020.

2.1 - Does the company have a written policy on ship recycling for its owned vessels?

Yes

2.1.1 - Is it publicly available?

Yes

2.1.2 - Please provide a URL

https://www.hapag-lloyd.com/en/about-us/sustainability/on-board.html#tabnav

2.1.3 - Since when has this policy been applied?

2014

2.2 - Does the company keep records of ships which have been sent for recycling?

Yes

2.3.1 - Please specify

Hapag-Lloyd Ship Recycling Policy

2.4 - Does the EU Ship Recycling Regulation apply to the company’s owned ships?

Yes

2.4.1 - How many ships does the regulation apply to?

25-50%

2.5.1 - Please comment

Please see also Hapag-Lloyd Code of Ethics

2.6 - Does the policy contain restrictions based on geography and/or recycling methods?

No

2.7 - Does the company have a written policy for selecting a yard or buyer for recycling?

No

2.8 - Does the company make ship recycling part of the company’s sustainability goals?

Yes

2.10 - Does the company have a ship recycling standard* (or similarly named) in force?

Yes

2.10.1 - From when has this been in force?

2014

3.1 - Does the company have a policy to promote responsible recycling of owned vessels sold for further trading?

Yes

3.1.1 - Please provide further details

Detailed contracts of sale specifying Hapag-Lloyd’s requirements pertaining to vessel disposal

3.2 - Does the company impose legally binding covenants or offer commercial incentives to the buyer to encourage responsible ship recycling?

Yes

3.2.1 - Please provide further details

We employ independent third party specialist supervision companies to ensure the recycling is carried out as per our contracts. Their authority is defined in our contracts with the buyer. We are also exploring and option of placing KPIs for the recycling yards which would be measured by these supervision companies. If the KPIs are met we would plan for a financial incentive for the recycling yard.

3.3 - Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over, released for redeployment or recycling?

Never

3.4 - Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling?

Never

3.5 - Does the company take steps to promote responsible recycling of vessels owned through JVs?

Never

4.1 - Does the company follow a Standard Contract for the sale of vessels for green recycling (e.g. RECYCLECON from BIMCO)?

Always

4.1.1 - If an industry standard contract template used, please specify

RECYCLECON from BIMCO

4.2 - Does the contract include an explicit requirement to recycle the vessel at a specific ship recycling facility?

Always

4.2.1 - Please provide further details

N/A

4.4 - Does the contract require compliance with the company’s written policy on ship recycling?

Yes

4.5 - What protection is in place for the seller to ensure that milestones can be set, that access to the ship and monitoring can be maintained throughout the ship recycling process?

Part of the sales contract is use of third party independent third party supervision companies to monitor and record the process of recycling. These supervision companies have their experts stationed at site and provide us a weekly report on the progress of recycling. Once the recycling is completed, they will provide certificates and a complete Recycling Report.

5.1 - Does the company have a Ship Recycling Plan for each vessel?

Yes

5.2 - Does the company provide the buyer or ship recycler with a Class approved IHM, at the time of finalising the ship recycling contract?

Always

5.3 - Does the company provide all relevant ship certificates, plans, procedures and documents, to enable the yards to follow applicable ship recycling guidelines (and the relevant standards from question 2.2. that the company is aligned to)?

Always

5.4 - Does the company have specific requirements for handling hazardous materials as listed in The Stockholm Convention?

No

6.1 - Does the company require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society?

Always

6.1.1 - Please provide further details

N/A

6.2 - Does the company carry out additional audits to verify compliance prior to recycling?

Always

6.2.1 - Please provide further details

N/A

6.3 - Does the company monitor yard compliance during the recycling process?

Always

6.4 - Does the company have the contractual right to stop work at the facility, in case of unsafe operations or other non-compliances?

Always

6.5 - Does the company require facilities to provide a process whereby yard workers can voice and resolve concerns and grievances regarding all workplace issues without fear of retribution?

Never

6.6 - Does the company require facilities to enable yard workers to associate and bargain collectively?

Never

7.1 - Please use this area to provide further information on the company’s approach to ship recycling if not already covered

We have realized early enough that an independent supervision, monitoring and reporting process is important to ensure compliances to the Contract, our Policies and to the International Regulations, for a safe and sustainable ship recycling. We will maintain this position and will look at enhancing this by looking at some incentives to the recycling yards by implementing measurable KPIs.