Ship Breaking at Alang Yards Decline in Past Few Months
Times of India reported that the final destination for retired ships Alang is seeing less traffic for the past few months beginning from February due to price differences between India and the neighbouring countries. High freight charge and container charges are discouraging ship owners to scrap old ships in Alang as Pakistan and Bangladesh are paying higher price than India. The ship dismantling hub generally gets 25 ships every month for dismantling which went down to around 12 to 15 between February and May.
According to ship breakers, the price of a ship has increased by 50 percent in the last one year and with Pakistan and Bangladesh offering more price, they are snatching India’s business. The reason behind this is that both these neighbouring countries use 60 percent recycled steel in construction and various other industries and the remaining steel they export. Steel price in international market has been very high for the past several months and this is why these countries attract more ships. While in India, only three percent recycled steel is used in the construction industry.
Alang witnessed huge inflow of old ships during the peak Covid period as owners were retiring old vessels for cash. The picture has, however, changed now. Besides the container crisis, shipping freight has increased manifold worldwide with the economy picking up.