Even though the central government aims at doubling the country’s ship recycling capacity by 2024, Alang, the biggest shipbreaking yard in Asia has seen lowest tonnage in a decade. The number of ships arriving at Alang has dwindled from 415 in 2011-12 with 38.57 lakh light displacement tonnage (LDT) to 209 vessels with 14.11 lakh LDT in 2021-22. The major reasons for reduction in demand for ship breaking include high fuel prices and high steel prices globally.
According to ship breaking agents in Alang, the prices of ships coming for breaking is soaring due to high steel prices globally. In 2020-21 the price per tonne was $280, which is now increased to $650. In the last financial year only passenger ships and tankers came for dismantling, but no container ship had arrived.
