Alang-Sosiya Ship Recycling Sees Modest Increase in Activity for FY26
MUMBAI: The Alang-Sosiya ship-breaking yard in Gujarat’s Bhavnagar district, recognized as the world’s largest ship recycling facility, beached 119 ships for recycling in the fiscal year 2026 (FY26). This figure represents a slight increase from the previous year’s total of 113 ships. The total Light Displacement Tonnage (LDT) for the beached vessels in FY26 reached 10,874,470.01 tonnes, indicating a steady demand for ship recycling despite ongoing challenges in the industry.
Among the 119 ships beached, 24 were classified as sanctioned vessels, often referred to as the “dark fleet.” These vessels accounted for 31.72% of the total LDT, weighing in at 345,021.59 tonnes. The breakdown of the beached ships included 25 general cargo ships, 46 tankers, 15 bulk carriers, nine reefer vessels, eight container ships, eight LNG vessels, two offshore units, two pipe-laying barges, and a variety of other types, such as tugs and passenger ships. This diverse range of vessels highlights the ongoing activity at Alang, even as the industry faces fluctuating market conditions.
In comparison, FY25 saw the lowest number of ships beached in a decade, with only 113 vessels and an LDT of 10,061,990 tonnes. The previous fiscal years also recorded varying numbers, with FY24 witnessing 125 ships and FY23 131 ships being recycled. The increase in FY26 suggests a potential recovery in ship recycling activities, although industry experts note that the overall availability of vessels remains a concern.
Challenges in the Ship Recycling Market
Despite the uptick in ship recycling at Alang, several challenges persist in the market. Industry insiders indicate that high freight rates have incentivized fleet owners to retain older vessels in operation rather than selling them for dismantling. The ongoing conflict in Iran has further complicated the situation, as it has made operating older sanctioned vessels more profitable than scrapping them.
According to a report from Global Marketing Systems Inc (GMS), the world’s largest cash buyer of ships for recycling, the structural challenges at Alang remain significant. The report highlights that there is insufficient workable tonnage arriving at the facility, leading to underutilization of the yards. While some smaller regional cargo vessels have entered the market, the larger units necessary for generating substantial revenue are notably absent from the demolition pipeline.
Additionally, recyclers in India are currently offering lower prices compared to competitors in Bangladesh and Pakistan, which could deter ship owners from choosing Alang for recycling. The report from Wirana Shipping Corporation emphasizes that while India has compliant yards and infrastructure for environmentally safe recycling, the pricing gap compared to other markets is a critical factor influencing ship owners’ decisions.
As geopolitical pressures and economic factors continue to affect the ship recycling landscape, industry stakeholders are urged to adapt to the changing market dynamics. The need for competitive pricing and efficient operations is essential for maintaining Alang’s position as a leading ship recycling hub in the region.
