Key facts
- Alang, the world's largest shipbreaking yard, has recorded its lowest monthly vessel arrivals in May since 1983.
- Only one ship, the oil tanker On Victor, beached at the yard last month.
- Geopolitical tensions and increased freight rates are causing shipowners to extend vessel lifespans through repairs.
- The downturn threatens the livelihoods of approximately 15,000 direct workers and thousands more in related trades.
- Disruptions in shipping lanes have increased demand for older vessels.
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.