Bangladesh's Scrap Ship Imports Drop to 20-Year Low Due to Pandemic and War, India Likely to OvertakeAccording to online newspaper The Business Standard, Bangladesh's shipbreaking industry faced its lowest performance in two decades, with only 144 scrap ships imported in 2024, totaling 9.68 lakh Gross Tonnage (GT). This marks the lowest figure since 2005, largely due to challenges from the Covid-19 pandemic and the Russia-Ukraine war.
A Declining Industry
The Business Standard reports that Bangladesh, a global leader in ship recycling with operations concentrated in Chattogram's Sitakunda, typically handles 2-3 million GT of end-of-life ships annually. However, imports dropped below 1 million GT for the first time since 2004. After peaking in 2021 with 280 ships and 2.73 million GT recycled, imports declined sharply to 1.14 million GT in 2022 and further to 1.02 million GT in 2023.Factors Behind the Decline
Industry experts cited multiple reasons for the downturn:- Economic Challenges: The global slowdown caused by the pandemic and war created a dollar crisis, reduced local demand, and increased international ship prices.
- Policy Delays: Bangladesh Bank imposed restrictions on imports, and the government delayed permissions for dismantling ships.
- Green Compliance: Many shipbreaking yards ceased operations to meet green transformation standards required by July 2025.
India Closing the Gap
While Bangladesh's industry struggles, India is expanding its shipbreaking capacity. According to The Business Standard, India aims to recycle 2.3-2.6 million GT in 2024 and grow to 3.8-4.2 million GT by 2025. With 120 green-certified yards on Gujarat's Alang coast, supported by $100 million in international funding, India is better positioned to comply with global environmental standards, including the Hong Kong Convention.Bangladesh, with only five green yards developed over the last decade, faces challenges in competing with India. Captain Anam Chowdhury, president of the Bangladesh Marine Officers Association, told The Business Standard that Bangladesh's late ratification of the Hong Kong Convention in 2023 means only green-certified yards can operate after mid-2025.“Without significant government support, this $9 billion industry is at risk of shutting down,” Chowdhury warned.Industry’s Financial Struggles
BSBRA President Abu Taher said that of 120 registered yards in 2020, only 60 were operational. Over the past four years, 35 yards have closed due to financial difficulties. He emphasized that rising international ship prices and falling local scrap steel prices have made it nearly impossible for ship-breakers to cover operational costs and bank interest payments.Taher explained to The Business Standard: “High ship prices in the global market, combined with low local scrap prices, create a cost gap that leads to continued losses for entrepreneurs.”
