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Scrap Ship Import Disruption Impacting Shipbreaking Industry

Industry: Logistics, Logistics & Shipping

The shipbreaking industry in Bangladesh is facing significant challenges as imports of scrap ships have been disrupted, resulting in delays and financial losses. Changes in the industry’s categorization from “orange-b” to “red” in the Environment Protection Rules have made obtaining a second round of environmental clearance mandatory for breaking each ship, causing further delays and financial burdens. The delays are impacting the supply of scrap materials to steel mills, creating a shortage and increasing production costs. Shipbreakers are incurring daily expenses and bank interests, while skilled laborers are leaving due to the prolonged waiting time. The industry fears it may not survive if the situation persists. Steel mills, relying heavily on shipbreakers for raw materials, are also experiencing disruptions in the supply chain. The shipbreaking workers have expressed their concerns and demanded a swift resolution to the crisis. Immediate actions are needed to address the environmental clearance issues and support the shipbreaking industry in Bangladesh.

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