The wreckage caused by China on the global steel industry due to its huge excess capacity has also caused a significant dent on the ship breaking industry. Compared with 970 ships demolished in 2014, the number has come down by 21% to 766 vessels in 2015. Going by the previous two years’ trend, it is likely to fall further causing significant damage to the economy and employment of Bangladesh, India and Pakistan among others.
The three neighboring countries control over 70% of the global ship breaking market. However, the shipbreaking industry is on the brink of closure in all three nations – be it Alang in India, Chittagong in Bangladesh or Karachi in Pakistan, largely because China is dumping finished steel at or below the price ship breakers buy the raw material! Environmental issues have also its share of damage on the industry.
According to reports, Bangladesh tops ship demolitions in the year 2015, both in terms of volumes and numbers of ships, followed by India and Pakistan.
Above info-graphics explains, number of ships that have been demolished in 2015 and tonnage recovered from it.
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