The Economics of Shipbreaking
Where Old Ships Go
How most of the world's old ships are dismantled on beaches in India, Bangladesh and Pakistan, and why this industry exists there.
Ships don’t last forever.
Lifespan
Most cargo ships are scrapped after about 25-30 years.
Where
Most of the world’s ship tonnage is broken in South Asia:
- Alang in India.
- Chattogram (Chittagong) in Bangladesh.
- Gadani in Pakistan.
Turkey and China also recycle ships.
Why South Asia
- Low labour costs.
- Strong demand for scrap steel.
- Tidal beaches where ships can be driven ashore.
- Looser regulation historically.
What’s recovered
Steel, engines, generators, furniture and fittings.
The last voyage
An old container ship sails at full speed onto a beach at Alang for dismantling.
Thinking ships are scrapped in rich countries
Most are broken in South Asia.
Key takeaways
- Ships are scrapped after 25-30 years.
- Most are broken in India, Bangladesh and Pakistan.
- Low wages and steel demand drive this.
- Steel and parts are recovered.
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