[🇧🇩] Ship Recycling Industry in Bangladesh

[Bilal9]

Source : https://www.tbsnews.net/economy/bangladesh-again-tops-ship-recycling-despite-65-decline-708262

Bangladesh again tops in ship recycling despite 65% decline​

Infograph: TBS

Bangladesh maintains the position as the top ship recycling nation despite a 65% decrease in its shipbreaking activities, reports the United Nations Conference on Trade and Development (UNCTAD).



Accounting for over one-third of global ship recycling, the country saw a reduction from 8.02 million tonnes in the previous year to 2.8 million tonnes in the 12 months leading up to January 2023.

Stakeholders attributed this decline to several factors, including the ongoing dollar crisis, diminished demand due to the near-completion of mega projects, high scrap prices in the international markets and the Russia-Ukraine conflict.

Mohammad Taslim Uddin, managing director of KR Ship Recycling Yard, told The Business Standard that there was a surge in demand for steel products in local markets driven by government-led mega projects.

"As these projects near completion, the demand has dwindled, discouraging shipbreakers from importing additional vessels," said Taslim, adding that the Ukraine-Russia war had impacted ship imports, as Russian sources of scrap ships were unavailable.

Jahir Uddin Rinku, managing director of PHP Ship Recycling Yard and vice president of the Bangladesh Ship Breakers and Recyclers Association (BSBRA), expressed concerns about the challenges faced by shipbreakers.

He noted that the difficulty of obtaining US dollars due to exorbitant bank exchange rates hindered their ability to import ships for recycling. Also, the gradual rise in international scrap ship prices and the widening gap between local and international markets have contributed to the decline in ship dismantling activities in the past year.

UNCTAD data shows in the 12 months to January 2023, Bangladesh recycled 2.8 million tonnes of ships accounting for 37.2% of the world total, followed by India with 32% and Pakistan with 17%.

Of the total ships recycled by Bangladesh, 50.4% were oil tankers, 41% were bulk carriers, 2% were ferries and passenger ships, 1.9% were chemical tankers, and 1.1% were general cargo ships, said the report titled "Review of Maritime Transport 2023" published on Wednesday (27 September).


But from January 2021 to January 2022, Bangladesh recycled 8.02 million tonnes of ships accounting for 52.4% of the world total, of which nearly 57% were oil tankers, 25% were bulk carriers and 9% were liquefied gas carriers, reads the annual flagship report.

Some disruptions, including financial pressures, constrained recycling activities, mentioned the report.

However, this year, interest in ship recycling picked up as shipping market conditions softened and issues relating to letters of credit in Bangladesh eased.

Ship recycling is anticipated to get a bigger boost in 2023 as shipowners renew and upgrade their fleets to comply with new Greenhouse Gas (GHG) emission regulations of the International Maritime Organisation (IMO).

More containerships are expected to be recycled in anticipation of a surge in new builds and lower freight rates in the coming years.

At the same time, the ship recycling market is expected to become more volatile, influenced by the IMO's EEXI and CII regulations, which help assess the CO2 emissions intensity of ships.

Factors such as speed reduction and removal from service for ship retrofitting will play a role in shaping the market, said the report.

In 2022, worldwide 7.5 million gross tonnes, representing less than 0.5% of the total active fleet, were sent for recycling.

Despite more stringent environmental rules and rising steel costs, market conditions took precedence, with shipowners eyeing the peaks in freight rates. Demand for older tonnage increased the average value of older vessels.

Asia leading the shipping fleet

At the start of 2023, 18 of the 35 major ship-owning companies were in Asia. China is the second-largest ship-owning country after Greece, followed by Japan (3rd), Singapore (4th), Hong Kong, and China (5th).

When measured by value, ship owners in China have an 11.04% share of the world fleet, second to Greece with 11.8%. Japanese shipowners hold a 10.73% share.

Hong Kong is the world's fourth-largest flag state of registration in terms of deadweight tonnage (DWT), with 200.07 million deadweight tonnes in its fleet — an 8.8% share of the world fleet. This represented a 3.7% fall in deadweight tonnes between 2022 and 2023.

In terms of vessel numbers, Hong Kong, China has a 2.4% share of the world fleet with a total of 2,537 vessels flying its flag.

Singapore takes fifth place in the leading flags of registration, followed by China in sixth place and Japan in tenth place. Other flags in the top 35 include Indonesia (12), the Republic of Korea (18), India (19), Vietnam (22), Malaysia (25).

Asian countries continue to lead in cargo handling performance. According to the Container Port Performance Index (CPPI), jointly produced by the World Bank and S&P Global Market Intelligence, 18 of the top 25 ports globally are in Asia, including 11 in Eastern Asia and four in Western Asia.

 

[Bilal9]

Meeting of IMO Secretary General with Industry Minister

Bangladesh working towards sustainable development of ship recycling industry: Industries Minister

Photo: Ministry of Industry

Industries Minister Nurul Majid Mahmud Humayun said that Bangladesh is working towards the sustainable development of the ship recycling industry by upholding and implementing the Hong Kong Convention.

IMO Secretary General Arsenio Antonio Dominguez Velasco said these things to reporters during a meeting with the minister at his office in Motijheel in the capital on Thursday (May 30).

The minister said that Bangladesh ratified the Hong Kong Convention on June 25 with the aim of reprocessing ships that have reached the end of their life in a safe and environmentally friendly manner. Accordingly, Bangladesh has to comply with the Convention by 26 June 2025 and ensure treatment storage and disposal facility (TSDF) in all yards.

Nurul Majid Mahmud Humayun said, to sustain this potential industry of Bangladesh, the necessary cooperation and advice from international maritime organizations and development partners should be implemented quickly. The Minister sought IMO's assistance in obtaining soft loans from development partners or international financial institutions for shipyard owners to comply with the Hong Kong Convention.

During the meeting, the IMO Secretary General said that the Hong Kong Convention introduced by the IMO is very important for the sustainable development of the ship recycling industry. He said that his visit was to see the steps taken by Bangladesh in this regard and to exchange experiences.

Mr. Dominguez noted that, he was happy to see that different ministries of Bangladesh are working together for the development of this industry.

During the meeting, the Additional Secretary of the Ministry of Industry (on routine duty of the Secretary) SM Alam, Ambassador of Bangladesh to the United Kingdom Sayeda Muna Tasnim, Director General of the Department of Shipping Commodore Mohammad Maqsood Alam and the Additional Secretary of the Ministry of Industry Dr. Shah Md. Helal Uddin and others were present.

The minister noted that Bangladesh has been recycling ships since 1980. Sitakunda upazila of Chittagong has more than hundred ship cycling yards. 50 of the said yards are operational. About 60 percent of the country's overall steel demand is met from the ship recycling industry. About 2 lakh people are directly and indirectly dependent on this sector.

 

[Saif]

Ship recycling in Bangladesh needs greater safety efforts

A recent tragedy in Bangladesh's ship recycling industry once again highlighted the persistent challenges related to worker safety.

www.thedailystar.net

Ship recycling in Bangladesh needs greater safety efforts

All stakeholders—government officials, yard owners, consultants, and safety agencies—must take immediate action to ensure a safe working environment for all workers in Bangladesh’s ship recycling industry. FILE PHOTO: STAR

A recent tragedy in Bangladesh's ship recycling industry has once again highlighted the persistent challenges related to worker safety, competent management, and effective regulatory enforcement. Twelve workers were injured in a flash fire or explosion at a ship recycling yard. Nine of the workers suffered serious burns, of them two succumbed to their injuries and seven others are in critical condition. This devastating accident has cast a shadow over the industry and saddened all stakeholders involved.

While there have been positive steps toward adopting greener and more sustainable practices, such as the establishment of five "green yards" complying with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, this incident underscores how much progress is still needed. Structural improvements alone are not enough to ensure safety in daily operations. What is missing is a consistent focus on basic safety techniques and practices, which are lacking in most of the yards.

Despite the industry's critical role in providing raw materials, employment, and revenue, the working conditions in many ship recycling yards remain hazardous. Issues such as oil spills, inadequate safety measures, and insufficient worker training pose significant risks. A lack of competent management and oversight further exacerbates these problems. The tragic loss of 142 workers over the past decade reflects a persistent culture of neglect, even though accident rates have decreased in recent years.

Since being officially declared an "industry" in 2011, the shipbreaking sector has made significant economic contributions, importing 2-2.5 million tons of scrap steel annually, according to a presentation by the Ministry of Industries. However, many yards—especially those not compliant with the Hong Kong Convention—continue to use unsafe methods. The enactment of the Bangladesh Ship Recycling Act in 2018 and the ratification of the Hong Kong Convention in 2023 represent progress, but the recent tragedy demonstrates that legislation alone is not enough. Without rigorous enforcement and accountability, safety will remain elusive.

As Bangladesh handles the majority of end-of-life vessels in South Asia, the global shipping industry is closely watching its ability to responsibly manage the global volume of ship recycling. To claim the title of a safe and environmentally sound recycler, Bangladesh must address several critical issues including developing yards that meet all regulatory requirements, implementing effective downstream waste management solutions and ensuring that workers are well-trained and proactive about health, safety, and environmental issues. Besides, ships should maintain an inventory of hazardous materials to manage their disposal safely during recycling. Proper documentation of compliance activities must also be maintained for audits and inspections. Finally, all stakeholders must act transparently and be held accountable for their responsibilities.

At the same time, the role of international shipping companies in ensuring responsible ship recycling must be scrutinised. Bangladesh cannot become a dumping ground for hazardous waste. Global stakeholders must share responsibility for ensuring safer, more environmentally sound practices. Bangladesh's efforts to align with the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal and formulate hazardous waste management rules are steps in the right direction. The potential support from Japan for establishing Treatment Storage Disposal Facilities (TSDF) further demonstrates commitment. However, these initiatives alone will not be enough to guarantee safety in all ship recycling yards.

While the industry faces financial challenges, particularly due to declining ship imports and economic uncertainty, safety and environmental regulations must remain a priority. This recent tragedy should serve as a wake-up call for the entire industry. Without a thorough investigation and the implementation of corrective measures, the cycle of accidents will continue, claiming more lives and perpetuating a culture of impunity. All stakeholders—government officials, yard owners, consultants, and safety agencies—must take immediate action to ensure a safe working environment for all workers in Bangladesh's ship recycling industry.

Muhammed Ali Shahin is a human rights activist working with Young Power in Social Action (YPSA).​

 

[Saif]

Ensure fair wage for shipbreaking workers

Why is the wage board for shipbreaking workers not implemented yet?

www.thedailystar.net

Ensure fair wage for shipbreaking workers
Why is the wage board for these workers not implemented yet?

VISUAL: STAR

It is frustrating to see shipbreaking workers breaking their backs day after day, yet being consistently denied a living wage. According to a report in this daily, owners of shipbreaking yards have been ignoring the wage board for workers for six years, paying a fraction of the salary they are owed. In the current economic situation where inflated prices of essentials have exacerbated the cost-of-living crisis, denying them the minimum wage is totally unacceptable.

The wage board for shipbreaking workers was announced in 2018, with a four-grade wage structure ranging from Tk 16,000 to Tk 31,750. However, none of the yard owners have abided by this structure ever since. Under the current payment system, a ship cutter gets a monthly wage of Tk 12,000-13,000, while an assistant cutter gets Tk 9,000-10,000. These amounts can barely pay for house rent, utilities, and basic food; workers cannot afford basic medication, education for their children, and even proper nutrition.

Yard owners have reportedly been hiring workers on contract to avoid the wage board, which is in direct violation of the Labour Act. Curiously, none of these owners have faced any legal repercussions in all these years. They don't even pay heed to warnings by the Department of Inspection for Factories and Establishments (DIFE) to implement the wage board. How is it that the owners can get away scot-free with such flagrant violations while the workers are forced to survive on meagre income without any help whatsoever?

Moreover, on the ground, their safety often gets zero preference amid insufficient supply of protective gear and proper tools as well as poor access to emergency medical care. As a result, accidents that could otherwise be avoided often turn fatal. On top of that, the workers don't even get paid properly. This cycle of abuse must stop. Workers in shipbreaking yards, RMG factories, and other industries have been exploited for too long; it's high time their welfare was made a top priority by a government that emerged out of the sacrifices of ordinary people including workers. The government must ensure full implementation of the wage board without delay. And necessary adjustments must be made to the wage structure taking the current inflation into consideration, so that workers get a decent wage and can live a life of dignity.​

 

[Saif]

Bangladesh still top shipbreaking destination

Bangladesh remained the global shipping industry’s first choice for scrapping vessels in 2024, even though the overall import fell to a six-year low amid dollar constraints and subdued demand due to economic woes.

www.thedailystar.net

Bangladesh still top shipbreaking destination
Yet imports fall to 6-year low

Bangladesh remained the global shipping industry's first choice for scrapping vessels in 2024, even though the overall import fell to a six-year low amid dollar constraints and subdued demand due to economic woes.

Shipbreaking yards in the densely populated South Asian country imported 130 ships for scrapping last year, according to an annual list on ship dismantling published by NGO Shipbreaking Platform earlier this week.

The figure was 23.5 percent lower than that last year.

The platform said 409 ships were dismantled globally in 2024, of which 255 ended up in South Asian yards.

To be specific, 80 percent of the vessels were scrapped last year under substandard conditions on the beaches of Bangladesh, India, and Pakistan.

"Bangladesh remains the shipping industry's first choice for scrapping, despite the grave consequences for workers, local communities, and fragile coastal ecosystems," the NGO Shipbreaking Platform said in a press release.

Nine workers lost their lives dismantling ships in South Asia in 2024, with another 45 workers injured due to unsafe working practices, it added.

Of those, Bangladesh saw one of last year's worst accidents.

While dismantling an oil tanker, a massive explosion claimed the lives of six workers and left six others critically injured at SN Corporation, a yard on the beach of Chattogram, the platform said.

Bangladesh's shipbreaking yards, situated in the southeastern coastal division of Chattogram, imported 280 vessels for dismantling in 2021, the highest in the past six years. Imports have fluctuated since then.

"Local market conditions have not been good this year. This is because of problems with imports due to the dollar crisis and a decline in our sales," said Md Abu Taher, president of the Bangladesh Ship Breakers and Recyclers Association (BSBRA).

Meanwhile, the total weight of the imported scrap vessels dipped by around 52 percent, according to data from the Bangladesh Ship Breakers and Recyclers Association.

"Our main buyers are steel re-rolling mills. They are registering a downturn in business as public construction has declined," he added.

"So, our sales have dropped. We are incurring huge losses. But our establishment costs have not declined, even though business has," Taher added.

He said the prospect of a recovery in business looks grim. "Who will buy scrap from us to make steel rods unless the construction sector is revived?" he questioned.

Bangladesh has 150 shipbreaking yards, and around 30 are currently in operation. Seven yards have so far received clearance as "green" yards, while 15 are preparing to become "green" yards, according to Taher.​