Alang Shipbreaking Yard Sees Significant Increase in End-of-Life Ships in 2025
In 2025, Gujarat’s Alang shipbreaking yard, one of the largest in the world, experienced a notable 21% increase in the number of end-of-life ships arriving for recycling. A total of 122 ships were processed in 2025, up from 101 in 2024, according to market sources. This surge reflects a growing trend in ship recycling, although challenges remain in capacity utilization at the facility.
Capacity Utilization Challenges at Alang
Despite the increase in ship arrivals, the Alang shipyard is operating at only 25% of its maximum recycling capacity, which exceeds 400 ships. The total Light Displacement Tonnage (LDT) for the 122 ships recycled in 2025 was 1.22 million LDT, compared to 0.77 million LDT for the 101 ships in 2024. LDT measures the weight of a ship’s structure and machinery, excluding cargo and other non-fixed elements. Nayeem Noor, Vice President of Business Development at GMS, the world’s largest buyer of ships for recycling, noted that while the number of ships has improved, approximately 70% of the yard’s capacity remains unused, leading to a lack of business for many facilities in Alang.
The ongoing success of the freight market has contributed to this situation, with fewer vessels being sent for recycling globally. High freight rates incentivize shipowners to retain aging vessels at sea rather than dispose of them. Mukesh Patel, Chairman of Shree Ram Group, one of the largest shipbreakers at Alang, expressed concerns that the shipbreaking industry has not seen significant improvements in recent years. He highlighted that the flow of ships to Alang has diminished since the COVID-19 pandemic, resulting in historically low shipbreaking activities.
India’s Advantage Under the Hong Kong Convention
As the Hong Kong Convention on safe and environmentally sound ship recycling comes into effect, India is positioned to benefit significantly. Noor emphasized that India boasts over 110 compliant recycling yards, compared to only 19 in Bangladesh and just one in Pakistan. This compliance gives India a competitive edge as shipowners and cash buyers seek immediate and compliant recycling options.
Gujarat’s Alang ship-breaking yard hits all-time low, hopes pinned on global
India’s ability to handle large volumes without disruption, maintain high documentation standards, and meet regulatory scrutiny from the outset enhances its appeal in the global ship recycling market. This strategic advantage could enable India to capture a larger share of global recycling tonnage and secure long-term commercial benefits over its competitors. The readiness of Indian facilities to comply with international standards positions the country favorably in the evolving landscape of ship recycling.
As the industry adapts to new regulations and market conditions, the future of shipbreaking at Alang remains a focal point for stakeholders in the maritime sector.
