Despite a 65% reduction in shipbreaking activities, Bangladesh remains the top ship recycling nation, accounting for over one-third of global ship recycling, according to the United Nations Conference on Trade and Development (UNCTAD). Shipbreaking activities decreased from 8.02 million tonnes to 2.8 million tonnes in the 12 months leading up to January 2023.
Several factors contributed to this decline, including a dollar crisis, diminished demand due to the near-completion of mega projects, high scrap prices in international markets, and the Russia-Ukraine conflict. The Ukraine-Russia war disrupted ship imports, as Russian sources of scrap ships were unavailable. The ship recycling market is expected to grow in 2023 as shipowners upgrade fleets to comply with new greenhouse gas emission regulations. More containerships are expected to be recycled due to a surge in new builds and lower freight rates.