The ship recycling industry at Alang in the Indian state of Gujarat has grown significantly over the last year, with ship companies docking vessels for disposal to avoid freight rates touching a 22-year low.
Considered to be the world’s largest ship graveyard of ships in terms of capacity, Alang has recycled nearly 281 ships of 23,92,558ldwt this financial year, according to Business Standard.
The figure is up from 264 ships of 19,43,771ldwt recycled in the last financial year and 136 vessels of 6,43,437ldwt recycled the year before, according to the Ship Recycling Industries Association of India, which represents 160 recyclers based at the breaking port.
This is also the highest over the last decade for Alang, which has seen its business plummeting ever since the peak of 361 ships of 30,37,882ldwt recycled in 1998-99.
The boom is also expected to come as a result of the International Maritime Organisation issuing guidelines to prevent the use of single hull tankers over 25 years after December 2010.