We have updated RECYCLECON – the global standard contract for sustainable ship recycling

The revised form is the result of almost two years of work by a specialist subcommittee of shipowners, cash buyers, recycling yards, brokers, legal advisers and BIMCO representatives, supported by extensive industry consultation. The subcommittee finalised the contract at an in-person meeting in Antwerp on 30 June and 1 July 2026 and BIMCO’s Documentary Committee adopted it in its October 2026 meeting.

Since its first publication in 2012, RECYCLECON has provided the industry with a contractual framework designed specifically for recycling transactions. The revision ensures that the contract remains aligned with modern industry expectations following considerable changes in the regulatory landscape and commercial realities of vessel recycling.

“The objective throughout this revision has been to provide the industry with a practical global standard for recycling transactions that reflects today's regulatory environment without losing sight of commercial reality. The entry into force of the Hong Kong Convention made this update both necessary and timely, but we were equally focused on improving the contract's usability, documentary structure and clarity. The result is a balanced and modern form that supports safe and environmentally sound recycling while remaining flexible enough to be used across different jurisdictions and recycling markets.” – Peter Laurijssen

The subcommittee

Peter Laurijssen (CMB) (chair), Melissa Cacciotti and Laura Molck (MSC), Charlotte Grandjean (CMA CGM), William MacLachlan (HFW), Anthia Savvidou (GMS), Mark Johnson (Hill Dickinson), Dimitris Ayvatoglu (Leyal Ship Recycling), Darren Lepper (Clarksons) ,Gudrun Janssens (BIMCO).

Preserving a proven framework

Although substantial changes have been made to the contract, the subcommittee considered it important to preserve the familiar structure and core principles of the 2012 edition wherever possible.

RECYCLECON 2026 retains the established approach under which the buyer accepts the vessel in its condition and location at delivery, while adapting the framework to the Hong Kong Convention's requirements for safe and environmentally sound ship recycling.

Bringing RECYCLECON into the Hong Kong Convention era

The entry into force of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships on 26 June 2025 was the principal regulatory development shaping the revision. The revised contract integrates the Convention's principal documentary requirements, including the Inventory of Hazardous Materials, Ship Recycling Plan, authorisation of the Ship Recycling Facility and Statement of Completion.

Rather than reproducing every regulatory requirement, RECYCLECON provides a practical mechanism for allocating responsibilities and exchanging the information needed for compliant ship recycling.

A clearer documentary framework

One of the most significant areas of work during the revision concerned the documentation requirements. Industry feedback indicated that the documentation requirements in the 2012 edition could be difficult to follow because relevant documents were referenced at different stages throughout the agreement. RECYCLECON 2026 therefore introduces a revised structure that clarifies when each document must be supplied and which party is responsible for providing it.

Greater use of Annex C (Documents) brings the principal documentary requirements together, improving usability and reducing administrative uncertainty.

Reflecting modern commercial practice

Aside from regulatory developments, the revision also addresses changes in sale and purchase practice that have emerged since 2012. The subcommittee reviewed the provisions relating to deposits, banking and payment mechanics, Know-Your-Client (KYC) requirements, notices, delivery procedures and default remedies to reflect current sale and purchase practice in international recycling transactions. New KYC provisions, a modernised deposit mechanism and updated default provisions address issues that regularly arise in practice, while maintaining a fair balance between sellers and buyers.

The revised form is designed to remain practical and adaptable as regulatory requirements and ship recycling practices evolve across different markets and jurisdictions. As with several recent BIMCO contract revisions, RECYCLECON 2026 incorporates a number of BIMCO standard clauses that have become widely accepted across the industry. These include provisions addressing sanctions, anti-corruption, personal data protection, confidentiality, electronic signatures and BIMCO's Law and Arbitration Clause 2020.  

_{Note that explanatory notes are only available to BIMCO members (login required)}