Hazardous Waste from Vessels

Oily Waste

Pan Ocean and POS SM strictly manage onboard oily waste, including bilge water and sludge. Pan Ocean uses the Environment Tag System (ETS) to record and monitor the operation of onboard environmental equipment and the treatment of oily waste, ensuring proper handling in accordance with international regulations.

Engine room bilge refers to a mixture of oil and fluid that accumulates on the floor of the engine room, including fuel oil, leakage oil, hydraulic oil, lubricating oil, and cooling water. It is typically stored in a bilge water holding tank and then discharged into the sea through an onboard oily water separator in full compliance with applicable regulations. POS SM manages bilge water based on the procedures outlined in its Environment Management System (EMS) manual.

Sludge, an oily residue, is generated during the treatment and purification of fuel and lubricating oils in main and auxiliary engines. It is stored in designated onboard tanks and is either incinerated using approved onboard incinerators or transported to shore for disposal.

Pan Ocean and POS SM recognize the environmental risks associated with oily waste and comply with all applicable regulations, including the Marine Environment Management Act. In 2024, Pan Ocean analyzed vessel-specific fuel types and operating patterns to supply tailored fuel additives, which resulted in an approximately 4% reduction in oily waste compared to the previous year.

Plastic Waste

Pan Ocean and POS SM strictly prohibit the disposal of all types of plastic waste generated on vessels into the ocean according to their Waste Management Manual, ensuring the waste is offloaded and handled at onshore port reception facilities. Furthermore, the incineration of plastic waste on board is absolutely forbidden, except for PET.

To ensure full compliance, Pan Ocean and POS SM displayed guidance throughout vessels, informing both offshore employees and passengers of the prohibition on plastic waste discharge and indicating the locations of designated collection bins.

Pan Ocean and POS SM refrain from accepting vessel supplies that contain plastic products or excessive packaging to minimize plastic waste.

If the receipt of plastic-containing items is unavoidable, such items are returned to suppliers through a predefined return process. In particular, Pan Ocean and POS SM request that suppliers minimize the use of plastic packaging materials—including plastic bags, shrink wrap, and Styrofoam—to reduce plastic waste generation from the sourcing stage.

General Waste from Vessels

Domestic Waste

Domestic waste generated in accommodation areas—including paper, rags, cans, metals, glass, and cigarette ends—is strictly managed in accordance with MARPOL Annex V. Pan Ocean and POS SM prohibit any discharge of domestic waste into the sea. Such waste is incinerated using onboard incinerators or delivered to port reception facilities for proper disposal. Offshore employees members use segregated garbage bins installed on board to ensure proper separation and handling of waste streams.

Food Waste

Food waste is segregated and stored separately from other garbage types. If not promptly disposed of, food waste generated during voyages and docking can rapidly result in odor and hygiene issues. Pan Ocean addressed this issue by implementing a proposition from an offshore employee in 2024 to operate onboard chillers while docked. This project facilitated the utilization of cooling systems during port stays, hence promoting safer and more hygienic management of food waste.

Offshore Employee-Led Installation of Onboard Chiller

Cargo Residue and Operational Waste

Cargo residues refer to runoff or remaining materials found on deck or in cargo holds after loading and discharging operations, including substances that are wet or mixed with wash water. POS SM confirms the hazardous nature of cargo or residues with shippers and ensures that disposal is conducted in accordance with applicable procedures and regulations, rather than conducting independent assessments.

Solid waste generated during cargo handling, routine vessel operations, or maintenance that is not subject to specific regulations is classified as operational waste. Pan Ocean and POS SM dispose of all waste types in full compliance with international conventions and relevant regulations.

Air Pollutant Management

Pan Ocean uses low-sulfur fuel oil with a sulfur content of 0.5% or less, in compliance with sulfur oxide (SOx) emission regulations set by the IMO. In addition, some vessels are equipped with scrubbers (SOx reduction devices) to further minimize air pollution by reducing sulfur emissions. For newbuild vessels, Selective Catalytic Reduction (SCR) systems are applied to decrease nitrogen oxide (NOx) emissions. The company also contributes to minimizing unnecessary air pollutants, through installation of Alternative Maritime Power (AMP) systems for vessels to receive power from land, reducing unnecessary air pollutant emissions from onboard diesel generators.

Pan Ocean has been participating in Vessel Speed Reduction (VSR) programs at major domestic and international ports to contribute to air quality in port cities. By reducing vessel speed, fuel consumption decreases, leading to significant reductions in emissions of sulfur oxides, nitrogen oxides, and particulate matter (PM) that comprise fine dust.

Funnel of a Pan Ocean Vessel with SOx Reduction Equipment

Hazardous Chemical Management

Hazardous Chemical Management Process

Pan Ocean manages hazardous chemicals in accordance with the International Maritime Dangerous Goods (IMDG) Code and the International Code for the Construction and Equipment of Ships Carrying Dangerous Chemicals in Bulk (IBC Code). The company evaluates the characteristics, hazards, and emergency measures of all hazardous chemicals in advance using the Material Safety Data Sheet (MSDS) in compliance with the Occupational Safety and Health Act.

To ensure safe transport, hazardous chemicals are classified and packaged in accordance with the IMDG and IBC Codes. Segregation and separation of cargoes are implemented as per the relevant Codes to prevent chemical reactions or incidents between substances. Pan Ocean also conducts a thorough verification of carriage restrictions or prohibitions under the IMDG Code and other applicable regulations prior to shipment, ensuring legal compliance and safe transportation.

Hazardous Chemical Accident Prevention

Pan Ocean has implemented a Personal Protective Equipment (PPE) matrix aligned with the characteristics of each hazardous chemical, mandating the use of protective gear. The company also strictly complies with relevant regulations to prevent accidents during transportation and storage of hazardous chemicals. Daily inspections are carried out upon key safety factors, including cargo temperature, the use of inhibitors, oxygen concentration within cargo tanks, and the condition of void spaces. Furthermore, the hazardous chemical management process is subject to biannual internal and external audits to regularly assess its proper implementation.

Marine Water Resources Management

Water Management

Pan Ocean extracts seawater during vessel operations for engine cooling, cleaning, sanitation, and general use, due to the characteristics of the maritime logistics Industry. All seawater intake and discharge take place in compliance with IMO International Convention for the Prevention of Pollution from Ships (MARPOL) and relevant national regulations. Pan Ocean is aware of detrimental impacts accompanied by the disposal of waste and pollutants generated onboard. Therefore, the company conducts all discharge activities exclusively within designated areas and conditions, transparently and precisely recording and managing waste disposal activities.

Scrubber Washwater Management

Pan Ocean complies with various international agreements and regulations regarding management of vessel water discharges, including the International Convention for the Prevention of Pollution from Ships (MARPOL). Specifically, the company implements real-time monitoring of water pollution indicatorssuch as pH (acidity), turbidity, polycyclic aromatic hydrocarbons (PAHs), and nitrate levels. This makes sure that washwater discharged from scrubber, which reduces sulfur oxides from vessel exhaust gases, is safely disposed within certain regulatory standards. Furthermore, Pan Ocean maintains scrubber washwater monitoring data records in order to satisfy inspections conducted by domestic and international port authorities, as well as other relevant agencies.

Greywater and Sewage Management

Sewage primarily originates from toilets, whereas greywater is classified under the category of general waste from kitchens, laundry rooms, and showers. Pan Ocean strictly adheres to the International Convention for the Prevention of Pollution from Ships (MARPOL) and relevant national regulations for the management of greywater and sewage. Vessels are equipped with sewage holding tanks, sewage commuting and disinfecting system, and sewage treatment plants, through which Pan Ocean processes and discharges sewage according to manuals.

In certain designated areas, such as the coastal waters of California, discharge of sewage and greywater is prohibited. In these cases, wastewater is collected and transported to onshore facilities. All discharge activities are carefully recorded and closely monitored to ensure thorough management. Pan Ocean conducts regular inspections and maintenance of sewage treatment systems according to its Planned Maintenance System, ensuring that all equipment remains in optimal working condition at all times.

Initiatives for Marine Ecosystem Disruption Prevention

Expansion of Ballast Water Management System(BWMS) Installation

Pan Ocean is aware that ballast water utilized for maintaining vessel stability during operations can pose risks to marine ecosystems by introducing invasive species. Therefore, the company proactively responds to the IMO's mandatory regulations requiring the installation of Ballast Water Management Systems (BWMS). Since September 2017, IMO has mandated BWMS installation on all vessels to prevent the transfer of microorganisms in ballast water to prevent marine ecosystem disruption. A year earlier in 2016, Pan Ocean began with proactive installation of BWMS for owned vessels. Also, the company carries out real-time monitoring of the ballast water treatment and discharge process and results, ensuring thorough management of ballast water disposal. In 2024, Pan Ocean installed the system on 13 vessels, competing BWMS installation for the entire Pan Ocean vessels.

Hull Cleaning

Pan Ocean is dedicated to preserving marine biodiversity by actively performing hull cleaning to remove marine organisms from vessel surfaces. Hull cleaning is a critical measure to prevent the spread of invasive aquatic species through biofouling, in line with the IMO’s Biofouling Guidelines. Pan Ocean schedules hull cleaning time in consideration of optimal anchoring times in mind to minimize environmental impacts and increase work efficiency. In 2024, Pan Ocean utilized robotic technologies and skilled divers to thoroughly remove biofouling organisms from all over the hull, including hardto-access areas.

Marine Ecosystem Protection Initiatives

Vessel Speed Reduction Programs

Pan Ocean participates in the Vessel Speed Reduction (VSR) programs taking place in major domestic and international ports, following the Special Act on the Improvement of Air Quality in Port Areas, as well as other domestic regulations and policies. These programs are effective in improving the air quality in surrounding areas and reducing fuel consumption by lowering vessel speeds. Slower vessel speeds also reduces underwater noise, thereby protecting marine habitats.

In particular, low-speed operation hugely reduces crash accidents between vessels and marine mammals such as whales and dolphins, providing substantial assistance to help mammal habitat conservation and protection of marine ecosystems.