Bangladesh's shipbreaking industry slips as regional competitors gain ground
For years, Chattogram was the world’s busiest destination for end-of-life vessels. But in 2025, the picture is shifting. India’s Alang yards are strengthening their reputation, Pakistan’s Gadani is regaining traction, while Bangladesh – with just 14 green yards – is showing fatigue
Bangladesh is losing its once-dominant position in the global shipbreaking market as India and Pakistan consolidate their share with stronger compliance, better prices, and faster procedures.
For years, Chattogram was the world's busiest destination for end-of-life vessels. But in 2025, the picture is shifting. India's Alang yards are strengthening their reputation, Pakistan's Gadani is regaining traction, while Bangladesh – with just 14 green yards – is showing fatigue.
According to NGO Shipbreaking Platform, Bangladesh beached 24 ships in the first quarter of 2025, against 21 in India and three in Pakistan. But in the second quarter, Bangladesh slipped to 22 ships, while India held steady at 21 and Pakistan edged up to four.
The downturn deepened after the Hong Kong Convention came into force on 26 June.
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Data from the Bangladesh Ship Breakers and Recyclers Association (BSBRA) show a sharp drop since then. No new NOC was issued for ship imports at Sitakunda in August, compared with seven ships totalling 90,000 tonnes in June and eight with 80,000 tonnes in July.
"The government must decide whether it sees shipbreaking as a strategic industry," said Zahirul Islam Rinku, vice-president of BSBRA. "If we keep dragging our feet, Bangladesh could lose an industry that provides jobs, steel, and global visibility."
India moves ahead
India now has about 110 compliant yards, far ahead of Bangladesh. At Alang, authorities have tightened oversight, cracked down on sanctioned vessels, and pushed rapid upgrades to Hong Kong Convention standards. That record has given shipowners confidence to recycle there.
Ship brokers said India is also benefiting from a stronger domestic steel market and currency stability, enabling higher bids.
"India is clearly reaping the rewards of early investments in compliance," said Toufiqul Islam, local representative leading cash buyer of vessels for recycling GMS Inc.
"The perception is that Bangladesh is lagging. That perception, even more than pricing, is costing business here."
Pakistan finds its footing
After years of decline, Pakistan's Gadani yard is showing signs of revival. Though not fully compliant, it has issued provisional safety certificates and gained government backing. Gadani recently secured four vessels exceeding 16,000 tonnes in a single week.
"Gadani's rise shows the market doesn't just reward compliance, it rewards agility," said Toufiqul.
Bangladesh slowdown deepens
In Bangladesh, domestic demand for re-rolled steel is weakening, inventories are piling up, and cheaper imports are driving prices down. Last week, local scrap fell to $417 per tonne, about $10 less than the previous week.
Industry insiders said dismantling approval can take up to two months after beaching. India and Pakistan are also offering $15–$20 more per tonne than Bangladeshi yards.
"We are paying higher for finance, higher for compliance, but getting lower prices," said Sitakunda breaker Nur Uddin Rubel. "India offers higher prices with more green yards, while Pakistan offers cheaper options. We are stuck in between."
He noted one vessel bid at $650 per tonne was won by an Indian yard at $680, a level Bangladeshi yards could not match.
Policy bottlenecks, human cost
Bangladesh ratified the Hong Kong Convention last year, but progress has been slow. Several yards are still awaiting clearance or blocked by financing issues. Industry voices argue that regulatory delays have discouraged investment.
The slowdown is also hitting workers. About 20,000 are directly employed in Chattogram and Sitakunda yards, with another two lakh linked indirectly. Many now face irregular shifts, delayed wages, or layoffs.
"Workers are already being forced into debt," said Fazlul Kabir Mintu of the Shipbreaking Worker Trade Union Forum.
Yard worker Zillur Rahman, with 12 years' experience, said his income had fallen by a third since 2024. "We used to work overtime and send money home. Now there are fewer ships and irregular pay."
