Bangladesh Retains Its Position As The Leading Shipbreaking Country

Bangladesh has become a prominent player again despite the shipping industry’s global crisis.

According to the most recent data from the NGO Shipbreaking Platform, Bangladesh retained its position as the leading shipbreaking country in the third quarter of this year (July-September), maintaining its pattern from the previous quarters of 2024.

During this time, 120 ships were dismantled worldwide, with Bangladesh accounting for 41 or 34% of the total.

This surge represents an astounding 170% increase over the same quarter last year when Bangladesh contributed only 14% of global shipbreaking efforts.

In the first three quarters of this year, Bangladesh scrapped 197 ships out of a global total of 582, accounting for nearly 34% of the market share.

This represents a significant shift from the situation experienced in 2020 when India led the shipbreaking domain.

According to fundamental industry analysts, Bangladesh’s recent infrastructural development drive has contributed to this fantastic growth.

Investments in projects such as the Padma Bridge, Metro Rail, and other power plants have skyrocketed, boosting demand for building materials like rods.

As a result, the shipbreaking industry has experienced a boom in activity to supply the raw material requirements for these massive projects.

Abu Taher, President of the Bangladesh Ship Breakers and Recyclers Association, emphasises the importance of infrastructure requirements in promoting shipbreaking activity.

He points out that despite the problems posed by the COVID-19 pandemic, shipbreaking continued uninterrupted during lockdowns, demonstrating Bangladesh’s determination in times of difficulties.

Bangladesh’s adept financial operations have strengthened its position in the global market.

Bangladesh has been able to compete for recycled ships by obtaining a significant loan from the International Monetary Fund (IMF) and maintaining firm foreign exchange reserves. It has also surpassed competitors in India and Pakistan regarding raw material prices.

Despite global problems and fluctuating scrap prices, Bangladesh has maintained a relatively stable market position.

In 2023, as worldwide demolition scrap prices fell, Bangladesh remained relatively stable, offering somewhat better rates for containers and tankers than India and Pakistan.

Bangladesh’s shipbreaking sector continues developing due to infrastructure demands, savvy financial moves, and a competitive market mindset.

The country’s continued dominance in shipbreaking demonstrates its resilience and adaptability to global industrial challenges.

Reference: TBS News, Hellenic Shipping News

Bangladesh Retains Its Position As The Leading Shipbreaking Country appeared first on Marine Insight – The Maritime Industry Guide

Source: Maritime Shipping News