- Indian ship recyclers have purchased the 2000-built VLCC ‘Amor’ from a shadow fleet, marking the first such transaction since 2022.
- The ship recycling industry shows signs of revival, despite ongoing environmental and worker safety concerns.
- Stricter enforcement of regulations and adoption of sustainable practices are crucial for the future viability of the ship recycling sector.
In a noteworthy development for the maritime sector, Indian shipbreaking yards have acquired the VLCC ‘Amor’ from a shadow fleet for dismantling, a move that signals renewed activity in the ship recycling industry. Alongside this, the acquisition of Odfjell’s chemical tanker ‘Stordal’ and a handysize bulker by Bangladeshi recyclers underscores a potential uptick in ship demolition demand, reports Shipping Inbox.
Key Transactions in Ship Recycling
The 2000-built VLCC ‘Amor’ was sold for $440 per light displacement tonne (LDT) to Indian recyclers at Alang, with the buyer’s identity undisclosed—a common feature of shadow fleet dealings.
The ‘Stordal,’ a chemical tanker from Norway’s Odfjell, has also reached the end of its operational life, making its way to Indian shipbreakers. Meanwhile, Bangladeshi yards are set to acquire a handysize bulker for dismantling, although specific details remain sparse.
Revival of Ship Recycling Activity
The sale of the ‘Amor’ highlights a potential recovery in the ship recycling industry. It had slowed down due to the pandemic and tighter environmental regulations.
This renewed activity may indicate a gradual resurgence in global shipping and increased demand for dismantling older vessels.
Persistent Environmental Concerns
Despite the economic benefits, ship recycling continues to face scrutiny for its environmental impact.
Many South Asian shipbreaking facilities have been criticized for inadequate pollution control measures, contributing to the contamination of air, water, and soil. Worker safety also remains a pressing issue in these yards.
Regulatory Landscape and Challenges
The IMO’s Hong Kong Convention (HKC) aims to standardize safe and eco-friendly ship recycling practices, but enforcement remains inconsistent.
Non-compliance by certain yards undermines efforts to improve the sector’s environmental and safety standards.
Ensuring a Sustainable Future
The ship recycling industry must address its shortcomings by adopting cleaner technologies. It improves worker conditions, and adheres to international regulations.
Collaboration among industry stakeholders will be vital for ensuring the sector’s long-term sustainability.
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Source: Shipping Inbox
