The ship recycling industry holds a vital role in the global maritime sector. With an estimated 108,787 ships currently in operation, the demand for retiring ageing vessels has intensified due to international regulations like decarbonisation goals and the International Maritime Organization’s (IMO) energy efficiency measures (EEXI and CII). Historically, vessels had an average lifespan of 27.5 years, but now this has been reduced to 15-25 years. As such, ship recycling has become a crucial requirement for maintaining the global maritime balance, promoting sustainability, and supporting national economies by phasing out inefficient ships and recovering valuable materials, particularly steel.
The next decade is poised for significant growth in the ship recycling industry. Between 2024 and 2035, the market is expected to expand as more vessels are retired. Short-term projections suggest that by 2025, between 5-10% of the global fleet or over 800 ships will be retired, with this figure rising to as many as 1,500 ships annually by 2028. By 2035, an estimated 15,000 ships, or 12.5% of the global fleet, will need to be recycled.
Currently, global ship recycling capacity is around 12 million LDT (Light Displacement Tons) annually. However, this capacity may become insufficient by 2026, as a 3% ship retirement rate could create a shortfall of 1.75 million LDT, potentially increasing to 3.25 million LDT by 2030. Innovations in recycling........