The Global Ship Recycling Landscape
The global ship recycling market, valued at approximately $7 billion in 2024 and projected to reach $13 billion by 2030, is undergoing a fundamental regulatory transformation. The entry into force of the Hong Kong International Convention (HKC) in June 2025 marks the first binding global framework for safe, environmentally sound ship recycling, reshaping how and where end-of-life vessels are dismantled.
Where Ships Go to Be Recycled
South Asian yards in India, Bangladesh, and Pakistan handle over 90% of global ship recycling tonnage. Indias Alang-Sosiya complex alone spans 183 plots along a 10 km coastline with a combined capacity of 4.5 million LDT. Bangladeshs Sitakunda strip near Chittagong operates approximately 60 yards, while Pakistans Gadani yard holds 132 plots capable of processing up to 125 ships annually.
Turkey has emerged as the primary alternative for EU-flagged vessels, with up to 11 EU-approved yards clustered around Aliaga near Izmir. Facilities like Leyal Ship Recycling, the first non-EU yard ever added to the European List, offer alongside dismantling with annual capacities exceeding 140,000 LDT.
Regulatory Frameworks Reshaping the Market
- EU Ship Recycling Regulation (EU SRR)
- Since December 2018, all large EU-flagged vessels must use facilities on the European List. As of February 2025, 43 facilities are approved: 31 in Europe, 11 in Turkey, and 1 in the USA. The EU explicitly prohibits beaching as a dismantling method.
- Hong Kong Convention (HKC)
- Entered into force on June 26, 2025, requiring vessels to carry an Inventory of Hazardous Materials (IHM) and recycling facilities to hold a Document of Authorization. Unlike the EU SRR, the HKC allows compliant beaching operations.
Recycling Methods Compared
| Method | Regions | Cost | Environmental Control |
|---|---|---|---|
| Beaching | India, Bangladesh, Pakistan | Highest return to shipowner | Lower (improving with HKC) |
| Landing / Slipway | Turkey | Moderate | Moderate to High |
| Alongside / Dry Dock | EU, USA, China | Lower return to shipowner | Highest |
Key Certifications for Yard Selection
Fleet managers evaluating recycling yards should verify:
- HKC Document of Authorization issued by the flag state or classification society (ClassNK, Lloyds Register, DNV)
- EU SRR listing mandatory for EU-flagged vessels, verified via the European Commissions published list
- ISO 30000:2009 management system for safe and environmentally sound ship recycling
- ISO 14001 / ISO 45001 environmental and occupational health standards