Business Summary

If a ship cannot be repaired after a major incident, it is often sold for scrap.

What is Ship Breaking?

Ship breaking is the process of dismantling ships and selling their parts - primarily the steel - for scrap. It is estimated that between 200 and 600 large, end-of-life ships are broken up and recycled every year worldwide.

The main impetus for breaking a ship down is that maintenance costs go up as a ship ages. Shipping companies also have to pay port charges, crew salaries and oil fees for their ships, so when they are no longer economically viable they are sold to ship recyclers who strip the old ships down, salvaging anything of value.

It is big business globally, particularly in the developing world.

Dismantling a ship and recycling its parts is a very labour intensive process that involves a wide range of activities, from removing all the equipment and items left on a ship, such as engine parts and fittings, to cutting down and recycling the entire ship’s infrastructure.

Is Ship Breaking Big Business?

Ship breaking is becoming increasingly important economically. In the developing world, ship breaking not only employs thousands of people in breaking down a ship, but the material produced is important to other industries, such as re-rolling steel plants.

Because of the increase in international trade and global shipping, ship recycling is on the rise. Most ships have a life expectancy of just 25 to 30 years, at which point many ships are scrapped. Shipping experts predict that every year, four percent of the world’s 89,000-strong shipping fleet should be scrapped or recycled. It is predicted that by 2010, 24 million tonnes – 4,000 ships - should be scrapped annually.

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