Alang shipbreaking yard, world's largest, faces worst-ever crisis as vessel arrivals hit record low

The world’s largest shipbreaking yard, at Alang in Gujarat, is staring at its worstever downturn, with monthly vessel arrivals hitting an all-time low owing to geopolitical tensions and shipowners opting to extend the lifespans of ageing fleets through repairs rather than scrapping them.

Last month, only one ship — Angola-flagged oil tanker On Victor — beached at the yard, marking the lowest monthly intake since recycling operations began in Alang in 1983, and raising concerns over the future of the `10,000-crore business, said industry executives.

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The unprecedented slowdown comes as shipowners globally have increasingly chosen retrofitting over demolition of the vessels. Disruptions caused by the Red Sea crisis, followed by the stranding of a large number of ships in the Strait of Hormuz, have lengthened shipping routes and increased global demand for old vessels.

“That only one ship beached in May is the lowest-ever figure in Alang. The situation remains grim in June as well — until Friday (June 12), only one vessel has arrived,” said Haresh Parmar, scrapyard owner and secretary of the Ship Recycling Industries Association (India). According to Parmar, Alang’s 115 scrapyards require a steady inflow of at least a vessel a day to sustain viable operations, making the current slowdown a severe threat to livelihoods and future of the industry. At its peak in 2011-12, Alang recorded 415 ship demolitions.

High Freight Rates

This is an average of more than one vessel a day. However, the numbers have steadily declined since then. Only 119 ships arrived during 2025-26. “Due to geopolitical conflicts, shipping routes have become longer, requiring more vessels to handle the same cargo volumes. At the same time, freight rates have surged. It is no surprise that most shipowners have chosen to keep their old vessels operational rather than send them for recycling,” said Parmar.

The demand for ageing vessels has surged amid disruptions in global shipping lanes. According to estimates by the International Maritime Organization (IMO), around 1,600 ships have remained stranded on the wrong side of the Strait of Hormuz, while 46 vessels were listed as damaged as of June 11. While several missile-hit vessels have suffered only minor damages, some incidents have resulted in severe losses.

The container ship Safeen Prestige, for instance, sank on March 4 after sustaining damage, while vessels including Marivex and Jalveer were also damaged and abandoned earlier this month, according to IMO data. “Some of these severely damaged vessels may eventually come to Alang for demolition,” a scrapyard owner said on condition of anonymity.

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“However, the process is lengthy. The prevailing tensions have made it difficult even for inspectors to reach affected vessels, let alone allow owners to decide on demolition and share vessel details with brokers for bidding.”

For now, a downturn in Alang will not only impact the 15,000 workers directly employed in the shipbreaking yards but also thousands more engaged in the trade of salvaged goods across the bustling second-hand market that stretches along the 10-km road leading to the scrapyards.