World’s Largest Shipbreaking Yard Sees Sharp Decline In Ship Dismantling

Alang-Sosiya, the world’s largest ship-breaking yard located in Gujarat’s Bhavnagar district in India, recorded its lowest number of ship recycling in over a decade during the financial year 2024-25.

Only 113 ships were beached for dismantling, a steep drop from the yard’s earlier peak of 400-415 ships annually.

According to a Gujarat government official, these 113 ships accounted for a combined Light Displacement Tonnage (LDT) of 10.06199 lakh.

LDT is the weight of a ship’s hull, machinery, equipment, and spares and is the standard unit used in scrapping transactions.

In comparison, FY24 saw 125 ships scrapped at Alang, with an LDT of 9.44069 lakh, while FY23 recorded 131 ships, totalling an LDT of 11.47480 lakh.

About 15 years ago ship recyclers dismantled around 400 ships annually at the yard.

Experts link the drop in the numbers to high freight rates that encouraged shipowners to keep older vessels in operation instead of selling them from scrap.

Dr Anand Hiremath, the Chief Sustainability Officer at Global Marketing Systems Inc (GMS), a Dubai-based company recognised as the world’s leading buyer of ships for recycling, explained that high freight earnings discouraged the retirement of aging vessels.

Additionally, weaker domestic steel prices and fluctuating USD-INR exchange rates made it difficult for Indian buyers to offer competitive prices.

Despite the downturn, Alang remains an important player in the global ship recycling industry.

An expected arrival of MV True Confidence, a Barbados-flagged bulk carrier severely damaged in a missile attack by Houthi rebels in the Red Sea a year ago could be a rebound for the yard.

The strike claimed the lives of three and left the vessel beyond repair. Currently anchored in the UAE, the ship is being bid on by an Indian buyer and could reach Alang within the next two months, according to Haresh Parmer, a scrapyard owner and secretary of the Ship Recycling Industries Association (India).

Alang has experienced a sharp decline from its peak performance. In FY2011-12, it dismantled 415 ships. In FY25, that number has dwindled to 113, representing only about 25% of its total capacity, spread across 131 years.

This decline has impacted Alang’s bustling second-hand market, where salvaged industrial goods and marine artifacts are sold.

Due to the decline in incoming ships, vendors have started stocking imported Chinese products and locally sourced alternatives to sustain their businesses.

Although Alang’s scrapyards are off-limits to general visitors and photography is restricted, the market area remains open to tourists.

Some yards are almost idle, with no vessels to dismantle. Workers, including guards and maintenance crews, are often seen waiting for new ships to arrive.

Meanwhile , at some yards, cutting operations have already begun, with ships being split open dramatically like giant cakes.

The yard founded by Captain N. Sundaresan in 1983, spans about 14 kilometres along the Gulf of Khambhat.

Over the years, it has grown, extending toward Sosiya and acquiring a total estimated value of US$110.6 billion in assets.

The combined Alang-Sosiya complex now includes 183 ship-breaking plots with a total capacity of 4.5 million LDT.

This facility is known for handling a wide range of vessels, supertankers, container ships, car ferries, and a decreasing number of ocean liners.

Ships are intentionally run aground during high tide and dismantled as the tide recedes, mostly through manual labour.

Reference: Economic Times

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