South Asia Maintains Lead in Shipbreaking Industry Amid Safety Concerns

South Asia’s shipbreaking sector, despite experiencing a slowdown in activity last year, maintained its position as the global leader in vessel recycling. However, the region also continued to be known for its high risks, with 45 workers sustaining injuries and nine fatalities reported in shipbreaking yards in Pakistan, Bangladesh, and India in 2024. The majority of scrapped tonnage, about 80%, was processed in South Asia, with Bangladesh leading the pack at 2.4 million gross tons, followed by India at 1.5 million and Pakistan at 0.6 million.

Accidents and fatalities are unfortunately common in yards that utilize the beaching method, which is the standard practice in South Asia. A tragic incident occurred on September 7, 2024, when an explosion on a vessel at SN Corporation Plot 2 in Chittagong resulted in the deaths of six workers, with four others critically injured. Despite the risks associated with shipbreaking, some facilities, such as SN Corporation, have received certifications for compliance with safety and quality standards, although concerns remain about the effectiveness of these certifications.

NGO Shipbreaking Platform has raised concerns about the low standards set by the International Maritime Organization (IMO) regarding ship recycling. The organization’s executive director, Ingvild Jenssen, criticized the IMO for allowing facilities like SN Corporation to maintain their certifications despite safety incidents and fatalities. While scrapping activity is expected to increase in 2025, particularly for container carriers, the sector still faces challenges in moving towards sustainable ship recycling practices. Owners are likely to send older vessels to yards in South Asia, such as Alang, Gadani, and Chittagong, as the industry anticipates an oversupply of tonnage due to the resolution of the Red Sea crisis.

Source