Scrapping, an Indian Institution

By Urs Dür

Marine Money has focused some of this issue on what India builds in the shipping industry. However no discussion of India and contemporary shipping can be had without some mention of the art, and I argue that it is an art albeit messy, of shipbreaking.

Last year, Indian concerns scrapped 8.4 million deadweight – down from over 10mdwt in 1999 – which at the amalgamated (tanker/drybulk) current price is about a $300m industry or thereabouts. Of the 22 million dwt scrapped in 2000, 63% was scrapped in India, Pakistan or Bangladesh according to Clarkson’s research. The other deadweight was taken by the Chinese (about 18%) and western countries disposing of specialized tonnage. In recent years India’s market share has diminished at the expense of the Chinese but the largest impact of the Chinese has been against the Pakistani and Bangladeshi markets.

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