In January 2024, the South Asian ship-breaking industry witnessed significant change, with an 11% increase in total processed tonnage. Bangladesh reported an outstanding 376% surge in tonnage, while India experienced a notable 41% drop compared to December 2023.
In contrast, Pakistan showed improved ship-breaking activity in January, marking a substantial increase from 200 LDT in December. India, Bangladesh, and Pakistan collectively dominate the global ship recycling market, accounting for over 90% share.
A total of 23 vessels were demolished in January for a total tonnage of 122,983 LDT. Out of total vessels received, the majority were containers and general cargoes. The share of containers increased by 169% m-o-m with 61,156 LDT (6 vessels) compared to 22,777 LDT (3 vessels) in the previous month, whereas bulk carriers’ share witnessed a significant drop of 36% m-o-m at 15,917 LDT (2 vessels) compared to 25,148 LDT (5 vessels) in December. Similarly, the share of tankers dropped by 90% to 4,045 LDT (2 vessels) compared to 42,052 LDT (3 vessels) in December.
India
In January, India contributed 61,366 LDT to a total of 122,983 LDT, representing a 41% decrease from the 103,960 LDT reported in December. Alang received 13 vessels in January, indicating a slight decline of 13% from the 15 vessels received in the previous month.
Trade activities remained moderate in January compared to the previous month and showed improvement towards the end of the month, according to market sources.
Pakistan
Pakistan’s ship recycling industry showed signs of improvement in tonnage from the beginning of 2024, rebounding from irregularities and insufficient tonnage reported in previous months (February to August and October to December 2023). In January this year, Gadani received a substantial tonnage of 31,967 LDT, a significant increase from December, when only 200 LDT was reported due to challenges like LC issues and the currency crisis. The number of vessels received in Gadani also rose from 1 in December to 3 in January.
In terms of pricing, the Pakistani market has now surpassed the Indian market, securing the second position after Bangladesh.
Bangladesh
Bangladesh witnessed an impressive 376% surge in ship recycling tonnage in January, reaching 29,650 LDT compared to December’s 6,225 LDT. Although acquiring LCs for vessels improved slightly, challenges persisted for higher-tonnage vessels. Chattogram received a total of 7 vessels in January, a 75% increase from the 4 vessels received in December.
