Bangladesh remains the top ship recycling country but loses global share
Earlier in 2023, Bangladesh ratified the UN accord on ship recycling, also known as the Hong Kong Convention, paving the way for the treaty's entry into force on 26 June 2025
Bangladesh retained its position as the world's leading ship recycling country, a position it has retained for seven years since 2018, recycling 2.74 million gross tonnes in 2024, which is 43.2% of the global share.
However, the country's global share dropped from 45.7% as recycling volume also decreased 19.9% from 3.42 million gross tonnes in 2023, according to an annual report of the United Nations Conference on Trade and Development (UNCTAD) published today (24 September).
The report, titled "Review of Maritime Transport 2025," comes as Bangladesh transitions to green ship recycling. It showed that in 2024, Bangladesh recycled 67% of the world's bulk carriers, 58% of liquefied gas carriers, and 42% of oil tankers.
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Earlier in 2023, Bangladesh ratified the UN accord on ship recycling, also known as the Hong Kong Convention, paving the way for the treaty's entry into force on 26 June 2025. The Convention requires ships to be scrapped in a safe and environmentally sound manner.
But Bangladesh entered the green ship recycling sector later than some of its competitors. Turkey's Aliaga town hosts yards that comply with both Hong Kong and EU standards, while India has over 100 certified yards in Alang.
Despite its late start, Bangladesh is making steady progress; out of 153 shipbreaking yards, 14 are already certified, and another 20 are in the process.
Support from development agencies, classification societies, and shipowners focused on responsible dismantling is helping the country strengthen its position in the global market.
However, adopting green practices comes with high costs. Upgrading a single yard can exceed Tk30-40 crore, and financing, technology transfer, and skilled labour remain ongoing challenges.
Yet the rewards are considerable. Certified yards can command higher prices per ship, attract international clients, and contribute to the protection of coastal ecosystems.
Meanwhile, in the shipbreaking market, India and Turkey followed Bangladesh, recycling 2.15 million and 0.47 million gross tonnes, respectively. Together, the three countries accounted for 84% of the global ship recycling market.
Global ship breaking industry in decline
Globally, ship recycling volumes slumped to 6.34 million gross tonnes in 2024, down 15.2% from 7.47 million in 2023.
The Unctad report stated ship recycling levels touched historic lows, discouraged by firm market earnings (when shipowners retain their older ships in service to maximise profits), elevated newbuilding prices, and, to some extent, limitations on ship recycling capacity.
However, the report struck a cautiously optimistic tone, noting that "ship recycling levels will likely remain subdued in the short term but are expected to recover as market conditions moderate, secondhand prices fall, employment opportunities under the 'shadow fleet' fade and fleet modernisation intensifies against the backdrop of an ageing fleet."
The Unctad report also highlighted challenges, reading "insufficient global ship recycling capacity at a time of high deliveries and an ageing fleet are a concern not only for the balance of supply and demand but also for timely fleet renewal in anticipation of increasingly tight environmental rules.
Moreover, capacity in the major recycling countries like Bangladesh, India, and Pakistan is limited, and tight sustainable ship recycling requirements and regulations are also adding pressure.
