Ship Recycling at Alang in dilemma: Only 6 ships beached during September 2024
South Asia dominates the global shipbreaking industry, accounting for a staggering 80 per cent of the sector, with India’s Alang shipbreaking yard at the forefront. However, the last two years have presented significant hurdles for this once-thriving hub. Recent statistics reveal a concerning trend: September 2024 saw Alang beaching only six ships, a stark contrast to the 12 vessels that arrived during the same month in 2023. Alang ship recycling industries facing significant problems for last two years and there is no sign of recovery shortly as well.
Under normal circumstances, Alang, known for its vast coastline and established infrastructure, typically dismantles an average of 25 ships per month. Yet, a combination of geopolitical tensions and rising shipping costs has resulted in a sharp decline in the number of vessels reaching its shores. The ongoing conflicts in the Middle East, particularly the Israel-Hamas-Hezbollah situation, have heightened uncertainties in global shipping routes, contributing to this slowdown.
The Baltic Dry Index, a key indicator of shipping rates, continues to soar, driving up operational costs for shipowners. Many are opting to repair and refurbish older vessels rather than send them to breaking yards, leading to a direct decrease in the volume of ships designated for dismantling.
In the first nine months of 2024, Alang managed to receive only 73 ships, weighing a total of 537,759.49 metric tons (MT). This figure is significantly lower compared to 92 ships that arrived in the same timeframe in 2023, weighing a cumulative 680,646 MT. September 2024 alone witnessed the beaching of just six ships, totaling 38,388 MT—down from 12 ships and 65,489.78 MT in September 2023.
Breaking down the numbers for the current year, Alang saw a peak in ship arrivals in January 2024 with 15 vessels, while subsequent months showed a troubling decline:
- January: 15 ships
- February: 8 ships
- March: 5 ships
- April: 3 ships
- May: 12 ships
- June: 10 ships
- July: 4 ships
- August: 10 ships
- September: 6 ships
Only four months so far in 2024 have seen double-digit ship arrivals, a stark indicator of the ongoing difficulties facing the yard.
The decline in shipbreaking activity has far-reaching economic implications for the region. Alang is not just a shipbreaking yard; it supports thousands of jobs, from labourers on the ground to those involved in logistics and ancillary services. With fewer ships arriving, many workers face uncertain futures, and local economies that rely on shipbreaking are feeling the strain.
The shipbreaking industry in India is critical not only for recycling materials but also for the livelihoods of countless families. The decline raises questions about the sustainability of the sector amidst global economic pressures and rising operational costs.
Industry experts suggest that unless the geopolitical situation stabilizes and shipping rates decrease, Alang may continue to struggle with low ship arrivals. The trend of shipowners choosing to repair old vessels for continued service rather than sending them for dismantling is likely to persist.
The resilience of the shipbreaking industry in India will depend on its ability to adapt to these challenges. Potential solutions may include investing in advanced technologies for shipbreaking to improve efficiency and reduce costs, as well as exploring new markets for shipbreaking services.
As September 2024 draws to a close, the shipbreaking yard at Alang finds itself at a critical juncture. With a combination of geopolitical turmoil and economic pressures impacting the global shipping industry, the path forward remains uncertain. Stakeholders in Alang must navigate these challenges carefully to secure the future of one of South Asia’s most vital industries.
While Alang has long been a beacon in the shipbreaking sector, its ability to thrive in the face of adversity will determine not only its fate but also that of the thousands who depend on it for their livelihoods.
