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Alang Shipyard Faces Historic Lows
14 Jun
Summary
- Alang, India's largest shipbreaking yard, has hit an all-time low.
- Geopolitical tensions and repairs are reducing ship arrivals.
- Thousands of livelihoods are threatened by the ongoing downturn.
Alang, India's premier shipbreaking yard, is currently experiencing its most severe downturn in history. Vessel arrivals have reached an unprecedented low, primarily due to escalating geopolitical tensions and a growing trend among shipowners to extend the operational life of older vessels through extensive repairs rather than immediate scrapping.
Last month, only a single ship was beached at the Alang facility, marking the lowest intake since recycling operations commenced in 1983. This dramatic decline poses a significant threat to the "10,000-crore business." Industry experts note that disruptions in key shipping routes, such as the Red Sea crisis and incidents in the Strait of Hormuz, have increased demand for older vessels and lengthened shipping times, making repairs a more financially viable option for owners.
Haresh Parmar, secretary of the Ship Recycling Industries Association (India), stated that the current situation remains dire, with yards requiring at least one vessel daily to maintain operations. This scarcity impacts not only the 15,000 workers directly employed but also thousands in the related second-hand goods trade, highlighting the widespread economic consequences of this downturn.
