Shipbreaking: Who’s Watching Over the Environment and Workers’ Rights?
While global fleet growth is projected to reach just over 3% this year, shipping lines are actively responding to overcapacity. By the end of the year, ships totaling nearly 500,000 TEU will be scrapped. Yet even that won’t be enough: overcapacity is still expected to grow by 6% in 2017.
South Asian Shipbreaking Beaches
Around 65–75% of decommissioned ships end up on just three beaches in South Asia:
Chittagong (Bangladesh)
Alang (India)
Gadani (Pakistan)
These locations offer cheap labor, weak regulation, and high demand for scrap steel and parts. Environmental protection and workers' rights are not a priority—and the profit margins are the highest in the world.
Why Is No One Intervening?
In 2009, Bangladesh's Supreme Court ordered stricter compliance from shipbreaking yards. 36 yards were shut downimmediately. However, within a year, operations resumed due to the industry’s economic importance:
Covers 20% of Bangladesh’s steel demand
Provides jobs for over 100,000 people
Now, no effective monitoring of environmental or labor regulations takes place.
European Regulation: Ineffective So Far
The EU’s Ship Recycling Regulation prohibits shipbreaking under European flags on non-compliant beaches. However:
The European Parliament declined to strengthen enforcement, citing the already fragile state of the maritime sector
Only one-third of European ships actually sail under EU flags, allowing owners to sidestep regulations by using flags of convenience
As a result, destructive shipbreaking practices in South Asia continue largely unchecked.
Maersk Line – A Setback for Progress?
Though only 20% of ships are scrapped responsibly, this is largely thanks to Maersk Line, which had committed to eco-friendly ship recycling. However, Maersk has recently announced a return to South Asian shipbreaking beaches, marking a regrettable shift in policy.
Conclusion
Despite modest regulatory efforts, the human and environmental costs of ship recycling remain alarming. The economic benefits for developing countries—and the loopholes exploited by global shipping giants—continue to outweigh enforcement of sustainable practices. Without stronger international oversight, these practices will likely persist.