The ship-breaking industry, faced a challenging 2023, recording the lowest scrap ship imports in a decade at 1,022,000 tonnes, down from 2,728,597 tonnes in 2021. The sector was impacted by a dollar crisis and a slowdown in the national and global economy. Ship imports hit a low in the first eight months due to the dollar crisis, with difficulties in opening letters of credit.
The disparity between international and local markets, coupled with rising dollar prices and increased margin rates, has affected profits. Shipyards are operating at a minimal capacity, and the industry anticipates a disastrous 2024 if economic challenges persist. Transformation efforts face hurdles, and the sector seeks government cooperation to survive. Industry leaders express concerns about paying workers and potential business closures if the situation persists.