Bangladesh rules shipbreaking, but must step up safety

Reaz Ahmad

With a fleet of 291 ships having a carrying capacity of 5.8 million deadweight tons (DWT), Bangladesh might be ranked 35th in global maritime transport. But when it comes to scrapping old shipping vessels, Bangladesh’s expertise and ranking are second to none.PauseMute

Remaining Time -7:29

According to the United Nations Maritime Review report published on September 24, Bangladesh ranked 35th in terms of vessels (both national and foreign-flagged ships registered in the country) and their freight-handling capacity throughout the year. To put this in perspective, the global aggregate capacity of maritime trade is 60,275 vessels with over 2.4 billion DWT.

Thus, Bangladesh holds only a small share of global maritime trade, with Greece, Japan, China, Singapore, Hong Kong (China), South Korea, Germany, Taiwan (China), the UAE, and the UK leading the sector. Bangladesh’s only South Asian neighbour among the top 35 maritime traders is India, ranked 17th.

When it comes to ship recycling and scrapping, however, Bangladesh emerges as a global leader. According to Wednesday’s UN report, over 2.7 million tons out of a total 6.3 million tons of ships sold for scrapping were sent to Bangladesh last year. This means Bangladesh scrapped over 43% of all discarded ships worldwide in 2024, followed by India (nearly 34%), Türkiye, and Pakistan (both over seven percent each). Denmark accounted for five percent of the global ship scrapping business, while the remaining 3.4% were scrapped in other countries.

The UN report notes that in 2024, Bangladesh, India, Pakistan, and Türkiye together accounted for 91.7% of the global ship recycling market. While Bangladesh and India led with over 77%, Pakistan and Türkiye held smaller but still significant shares.

Shipbreaking is a multimillion-dollar business, providing yard owners with substantial profits and creating employment for thousands of otherwise unemployed people. Yet, due to frequent non-compliance and disregard for safety protocols, the sector has earned a poor reputation. Numerous incidents have cost workers’ lives because of hazardous working conditions. Environmental and human rights records in many Bangladeshi shipbreaking yards remain far from satisfactory.

Policy planners should explore ways to facilitate the sector so that Bangladesh’s shipbreaking yards generate more revenue, boost the economy, and create critical employment opportunities. Now is the time for the right policy direction — firstly, because the global maritime industry is expected to see a rise in shipbreaking demand as fleets age, and secondly, because the traditional negligent handling in unsafe and unhygienic yards will no longer be permitted under newly enforced global industry compliance. Bangladesh cannot afford to lose its edge in shipbreaking by defaulting on compliance.

Insufficient global ship recycling capacity amid high deliveries and an ageing fleet is a concern not only for supply-demand balance but also for timely fleet renewal in anticipation of stricter environmental regulations.

Capacity in major recycling countries like Bangladesh, India, and Pakistan is limited. Sustainable ship recycling requirements are adding pressure. The Hong Kong Convention, which mandates ships be scrapped safely and in an environmentally sound manner, was adopted in 2009 but entered into force only on June 26, 2025.

The recycling of ships is likely to grow in importance and must increase for the global fleet to be modernized in line with decarbonization targets. Shipbreaking is a harsh and dangerous process, often carried out by workers using basic tools and facing daily risks from toxic exposure, explosions, and unsafe conditions. Many workers lack proper training, healthcare, or sanitation. 

These factors make shipbreaking one of the most dangerous jobs in the world. It can also cause severe environmental damage, releasing hazardous substances such as asbestos, polychlorinated biphenyls, oil residues, and heavy metals into the soil and sea, polluting coastal communities, and threatening ecosystems, fisheries, and public health.

To address some of these issues, the Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships was negotiated under the International Maritime Organization (IMO) and adopted in 2009. After more than 15 years, the Convention finally entered into force on June 26, 2025, providing a framework to significantly improve health, safety, working conditions, and environmental sustainability in global ship recycling.

The Convention currently has 24 Contracting States, including Bangladesh. Major flag states, including Japan, Liberia, the Marshall Islands, and Panama, are also Contracting States. The Convention mandates implementation measures for both flag states and states with recycling facilities to enhance safety and environmental compliance.

Mandatory regulations cover ship design, construction, operation, and preparation to support safe and environmentally sound recycling; the operation of ship recycling facilities; and enforcement mechanisms including surveys, authorization, certification, inspection, and reporting.

Flag states must ensure that all ships of 500 tons or above flying their flag comply with the Convention’s provisions. This includes developing and maintaining a ship-specific inventory of hazardous materials, updated throughout the ship’s operational life, identifying locations and approximate quantities of hazardous materials on board. Ships must undergo initial, periodic, and final surveys prior to recycling, after which an international ready-for-recycling certificate is issued, confirming compliance with the Convention.

As a major stakeholder in global ship recycling, Bangladesh is bound by the Hong Kong Convention and must adhere to its safety protocols to maintain its position in the industry. Policy planners should take a broad view of the sector and enforce safety, security, and hazard protocols to ensure that Bangladesh’s shipbreaking industry generates greater revenue by scrapping more ships in the coming years.

Reaz Ahmad is Editor, Dhaka Tribune.

source : dhakatribune