Key facts
- Alang, the world's largest shipbreaking yard, has recorded its lowest monthly vessel arrivals in May since 1983.
India's Alang shipbreaking yard, the world's largest, is experiencing its worst downturn due to geopolitical tensions and extended ship lifespans. Vessel arrivals hit an all-time low in May, threatening thousands of livelihoods.
The crisis at Alang, the world's largest shipbreaking yard, highlights the significant impact of geopolitical instability and shifting market dynamics on global trade routes and the maritime industry, threatening thousands of jobs and a substantial business sector.
Alang, India's largest shipbreaking yard, is facing an unprecedented crisis with vessel arrivals hitting an all-time low. In May, only one ship beached at the yard, the lowest figure since operations commenced in 1983. This downturn is attributed to geopolitical tensions, particularly disruptions in the Red Sea and Strait of Hormuz, which have lengthened shipping routes and increased demand for older vessels.
Shipowners are increasingly opting to extend the operational lifespans of their fleets through repairs and retrofitting rather than sending them for demolition. High freight rates further incentivize keeping vessels active. According to the International Maritime Organization, approximately 1,600 ships were stranded near the Strait of Hormuz as of June 11, with some sustaining significant damage.
Industry executives warn that the current slowdown poses a severe threat to the estimated 10,000-crore business and the livelihoods of around 15,000 workers directly employed in the shipbreaking yards, as well as thousands more in the associated second-hand goods market. Alang's 115 scrapyards require a steady inflow of at least one vessel per day to maintain viable operations.