Cargo owner and leading merchant and processor of agricultural goods, Louis Dreyfus Company (LDC), has joined the Ship Recycling Transparency Initiative (SRTI), a cross-sectoral coalition calling for increased transparency around ship recycling practices.
“By signing up to the SRTI, LDC expresses its expectation for transparency and responsible ship recycling,” said Andrew Stephens, Executive Director of the Sustainable Shipping Initiative that hosts the SRTI.
“This is not just a problem for shipowners to solve – it requires collaboration between all key stakeholders, including shipowners, financiers and cargo owners.
“And leading cargo owners like LDC, whose sustainability approach spans the entire value chain, are connecting the dots through their commitment to sustainable freight, extending their drive for positive change to the way their products – coffee, cotton, soy and many others – are shipped.”
“LDC is pleased to sign up to the SRTI as a cargo owner, bringing our support to transparent and responsible ship recycling as part of our philosophy to build awareness and work collaboratively,” said Sebastien Landerretche, Head of the Freight Platform for LDC.
“This fits well with LDC’s overall environmental commitments, and with our ongoing cooperation with shipowners and other SSI members toward a more sustainable shipping industry.”
Currently, ship recycling carries high social, environmental, health and safety risks and there is no effective global regulation nor accepted voluntary standards exist to ensure a consistent approach.
Different approaches mean that good practice does not always get rewarded and bad practice can often go unchecked.
Moreover, there exist few business incentives for shipowners to take responsibility for the entire lifecycle of their vessels and to be proactive in changing the existing industry narrative.
The SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling practices through transparency throughout a vessel’s entire lifecycle; and subsequently to influence and improve decision-making about ship recycling, creating an industry-wide level playing field.
The SRTI is attracting increasing interest among cargo owners and financial stakeholders, reflected by increasing demand for access to information that can support sustainable investment and procurement decisions.
Demanding transparency on shipping companies’ practices ensures those with whom they do businesses recycle their vessels responsibly.