The shipping industry is poised for a significant surge in ship recycling activities, driven by tightening regulations on greenhouse gas emissions. This optimistic outlook brings forth a busy and promising period for ship recyclers worldwide. Recent analysis from BIMCO indicates that the anticipated wave of ship scrapping candidates may surpass previous projections, propelled by stringent environmental regulations and the aging global merchant fleet. By 2032, it is forecasted that more than 15,000 ships or 600 million deadweight tonnes, equivalent to over a quarter of the current trading fleet, could be recycled—a remarkable growth of over 100% compared to the past decade.
During the previous ten years, 7,780 ships with a combined deadweight capacity of 285 million tonnes were recycled, with the majority originating from vessels built in the 1990s. However, BIMCO projections now indicate that ships built during the 2000s, a period of significant fleet expansion, will serve as the primary source of recycling over the next ten years.
The expected increase in ship recycling ushers in a cheerful and active period for the shipping industry. As stricter greenhouse gas emissions regulations prompt the early retirement of older vessels, ship recyclers are gearing up to meet the rising demand. By embracing ship recycling as an integral part of the circular economy, the industry can make substantial strides toward a more sustainable future.
Rohith Agarwal, ship recycling consultant at Alang, offers his opinion on the projected surge in ship recycling. Agarwal commends the industry's efforts to address greenhouse gas emissions through retiring older vessels. He highlights that ship recycling, when conducted in compliance with internationally recognized standards, significantly contributes to reducing the shipping sector's carbon footprint. Moreover, the circular economy benefits from the reuse and recycling of valuable materials obtained from decommissioned ships.
However, Agarwal stresses the importance of ensuring safe and environmentally sound ship recycling practices. Furthermore, he calls for addressing potential social and economic implications arising from increased ship scrapping. This includes providing support to workers in the ship recycling industry, particularly in regions heavily dependent on this sector. Additionally, measures must be taken to prevent improper disposal of hazardous materials and promote responsible ship recycling practices.
The expected surge in ship recycling presents an opportunity for the shipping industry to align with sustainability goals. By adhering to international standards and investing in greener and more efficient vessels, the industry can contribute to a more environmentally friendly and socially responsible maritime sector. Embracing sustainable ship recycling practices is not only a legal obligation but also a chance to pave the way for a brighter and greener future in the shipping industry.
Rohith Agarwal, CEO - Guideship Consulting Services