The Economics of Shipbreaking
Shipbreaking: Recap
A recap of the economics of shipbreaking.
Shipbreaking is the end of global shipping’s chain.
Module recap
- Most ships are broken in South Asia.
- Beaching is cheaper than drydocks.
- Ships sell per LDT through cash buyers.
- Steel is re-rolled for construction.
- Everything else is resold.
- Workers face high risks.
- Ships contain toxic materials.
- The Hong Kong Convention entered into force in 2025.
- Bangladesh and Pakistan compete.
- Green recycling is growing.
- Freight cycles drive volumes.
Lesson
Global trade has hidden ends that need regulation.
The full life
A ship built in Korea, sailed worldwide and ends as steel bars in Gujarat.
Thinking shipping ends when ships retire
Recycling is part of the chain.
Key takeaways
- South Asia breaks most ships.
- Recycling recovers steel and parts.
- Safety and toxics need regulation.
- Freight cycles drive volumes.
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