South Asia’s shipbreaking industry, while experiencing a downturn in activity last year, continues to dominate the global vessel recycling market, holding significant risks for workers. According to the NGO Shipbreaking Platform, 80% of all scrapped tonnage was processed in South Asia, with Bangladesh leading by dismantling 2.4 million gross tons across 130 ships. India followed with 1.5 million tons, and Pakistan accounted for 0.6 million, barely surpassing Turkey, the main alternative for shipbreaking.
Despite its prominence, the industry remains hazardous. In 2024 alone, there were 45 reported injuries and nine fatalities among workers across Pakistan, Bangladesh, and India, underscoring the dangers associated with the predominant beaching method of ship dismantling prevalent in the region. Most notably, a tragic incident occurred on September 7, when an explosion at SN Corporation’s facility in Chittagong claimed the lives of six workers and left several injured, highlighting the perilous conditions workers face. This incident followed closely after SN Corporation had received compliance certification with the Hong Kong Convention, which is meant to ensure safety and environmental standards in ship recycling. Despite the explosion and subsequent revocation of SN Corporation’s environmental permit by Bangladeshi authorities, the company retains its IMO HKC certification, raising questions about the effectiveness of these standards.
Ingvild Jenssen, executive director of the NGO Shipbreaking Platform, criticized the low standards upheld by the International Maritime Organization (IMO), arguing that many hazardous facilities continue to hold compliance statements that do not promote true safety and sustainability in ship recycling. In fact, the average fatality rate at SN Corporation has reached 20 deaths since 2010, suggesting systemic issues within the industry.
Looking ahead, the market may see an uptick in shipbreaking activities by 2025. According to GMS, a prominent cash buyer, there is an expected oversupply of container carriers when the Red Sea crisis stabilizes, prompting owners to send older ships to dismantling yards in Alang, Gadani, and Chittagong in greater numbers than in 2024, a year that saw unusually low demolition activity.
The shipbreaking sector’s renewed activity will likely continue to pose significant risks to workers unless meaningful reforms are implemented, particularly regarding operational safety and environmental compliance standards. The juxtaposition of ongoing fatal incidents and the certification process emphasizes the need for better regulations and oversight to ensure safer working conditions in this critical industry.
