South Asia: Ship-breaking tonnage increases 11% m-o-m in May'24

The South Asian ship-breaking sector saw an increase in tonnage received in May 2024. India, Pakistan, and Bangladesh collectively processed 200,254 LDT, marking an 11% rise from the 180,360 LDT recorded in April. On an annual basis, the tonnage surged by 60% compared to 125,506 LDT in May of the previous year.

Bangladesh reported the highest tonnage at 115,831 LDT, though this was a 2% decrease from 118,231 LDT in April. India followed with 67,854 LDT, showing a significant 58% increase from 42,925 LDT in April. Pakistan reported a decline, with tonnage falling by 14% m-o-m to 16,569 LDT.

In May, a total of 34 ships were recycled, amounting to 200,254 LDT. The majority were general cargo ships, totaling 36,644 LDT, which is a significant increase of 107% compared to 17,726 LDT in the previous month. This was followed by tankers and bulk carriers at 33,370 LDT and 26,061 LDT, representing m-o-m increases of 23% and 12%, respectively.

Notably, the total number of ships recycled in May rose significantly by 62% to 34 from 21 ships seen in April.

India

Indian ship recyclers processed 67,854 LDT in May, a notable increase of 58% compared to 42,925 LDT in the previous month. On an annual basis, this figure represents a 26% rise from the 53,835 LDT recorded in May 2023. The number of ships recycled in India remained steady at three, the same as in April.

This improvement in tonnages occurred despite a scarcity of ships available for recycling. Alang's ship recycling lanes were bustling, with small to medium-sized ships arriving weekly.

Pakistan

Pakistan's tonnage for May was 16,569 LDT, a 14% decrease from 19,204 LDT in the previous month. Notably, no tonnage was recycled in May 2023. Approximately eleven ships were recycled during the month, a significant increase of 175% compared to just four in April.

Bangladesh

In May, Bangladeshi recyclers processed approximately 115,831 LDT, a 2% decrease from the 118,231 LDT recycled in April. However, on an annual basis, the tonnage increased by 60% compared to the 71,671 LDT reported in May 2023. About twenty ships were recycled during the month, marking a 43% increase compared to 14 ships recycled in April.