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Ship Breaking And Recession

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by - 7/14/2009 9974 Views

Ship Breaking Has Turned To Be an Emerging Business in 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 the graveyards, the scrapping industry in the South Asia has experienceda dramatic growth. The industry has grown because the leading container lines are trying to get rid of as many ships as possible to cope up with the global meltdown. Now, as the giants of the sea are in their deathbeds, people of Bangladesh, India and Pakistan are making the most of it. According to reports, as much as 90% of dismantling of 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 lining across the shore for dismantling. Others are already dismantled and only their hulls are recognizable now. In fact, this beach of the world is one of the most important centers for ship breaking. All different types of vessels such as container ships, oil tankers, bulk containers, vehicle transporters are dismantled here.

Such is the impact of the recession that the vessels that once dominated the sea as the flagships of globalization are now ready to dismantle. There are ships larger than the Titanic that have lost their value and have gathered in the graveyard to be split. Different parts of them will be sold separately. The rates of the charter and freight have gone down steadily; the passenger lines are cancelled one after another. Those that are still sailing are becoming very costly. All this has contributed to the recent hike in ship breaking. The trend started during the end of the last year.

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

One of the better places where these ships are spending their last few days is Alang, in the southern part of Gujarat India where they are turned into scrap metal and various other scrap. Because of the high tide, the ship can run into the beach. Once the tide turns low, the hulls get out of the water and scrapping starts. The Hindustan Times reports that the pace of action ensures that a bulk freighter is totally dismantled within 40 days. And the industry there 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 to the scrappers. The scrapped metals are then sent to the mills in Karachi or Chittagong to turn in to steel for the construction. Reuters report that a new type of bazaar has evolved to sell products that can not be used in that process. Such products include sofa, carpets, doors, refrigerators and even the bathtub ofthe captain.  

In fact, Anil has even launched a company that now top the list of scrap ship buyers. According to his predictions, more than a thousand ships are yet to be dismantled and the industry is yet to reach its zenith. Since, the ship lines are still getting ship from orders that can not be cancelled; it is inevitable for them to scrap the old ones. 

Category : General

Tags : General Scrap, Metal Scrap,

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About Linda

Linda Saha, born at Sydney, Australia on Nov 1974 is an active environmentalist and publisher of various environmental journals. She is a member of several Environmental and Recycling groups. .... more info


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