Ship Breaking And Recession

It is the typical tale of how one finds profits inthe loss of others. As the epidemic of recession has sent the ships to thegraveyards, the scrappingindustry in the South Asia has experienceda dramatic growth. The industry has grown because the leading container linesare trying to get rid of as many ships as possible to cope up with the globalmeltdown. Now, as the giants of the sea are in their deathbeds, people of Bangladesh, Indiaand Pakistanare making the most of it. According to reports, as much as 90% of dismantlingof ship takes place in that region.

The sandy sea shore in the northern Chittagong ofBangladesh has turned into a graveyard of steel. Dozens of ships are liningacross the shore for dismantling. Others are already dismantled and only theirhulls are recognizable now. In fact, this beach of the world is one of the mostimportant centers for ship breaking. All different types of vessels such ascontainer ships, oil tankers, bulk containers, vehicle transporters aredismantled here.

Such is the impact of the recession that thevessels that once dominated the sea as the flagships of globalization are nowready to dismantle. There are ships larger than the Titanic that have losttheir value and have gathered in the graveyard to be split. Different parts ofthem will be sold separately. The rates of the charter and freight have gonedown steadily; the passenger lines are cancelled one after another. Those thatare still sailing are becoming very costly. All this has contributed to therecent hike in ship breaking. The trend started during the end of the lastyear.

At the initial stage, ships with the capacity of10 million tons were scrapped. Subsequently, the big ships joined the queue aswell. 

One of the better places where these ships arespending their last few days is Alang, in the southern part of Gujarat, Indiawhere they are turned into scrapmetal and various other scrap. Because of the high tide, the ship can runinto the beach. Once the tide turns low, the hulls get out of the water andscrapping starts. The Hindustan Times reports that the pace of action ensuresthat a bulk freighter is totally dismantled within 40 days. And the industrythere is earning millions of dollar thanks to this. Since last December, over125 ships have gathered there.

People like Anil Sharma are making the most of it.He is a cash-buyer who buys ship from the shipping companies and sells them tothe scrappers. The scrapped metals are then sent to the mills in Karachi or Chittagongto turn in to steel for the construction. Reuters report that a new type ofbazaar has evolved to sell products that can not be used in that process. Suchproducts include sofa, carpets, doors, refrigerators and even the bathtub ofthe captain.  

In fact, Anil has even launched a company that nowtop the list of scrap ship buyers. According to his predictions, more than athousand ships are yet to be dismantled and the industry is yet to reach itszenith. Since, the ship lines are still getting ship from orders that can notbe cancelled; it is inevitable for them to scrap the old ones.