Best Tips for Finding a Reputable Ship Scrap Companies

Once a vessel reaches the end of its service life, most ship owners then sell their vessel to cash buyers. These dealers of the scraped vessel then bring the broken ship to its final destination- beaching yards in South Asia. After that, with the help of scrap dealers cash buyer bring the ‘end–of–life’ vessel into South Asia Yard. The cash buyers at first pay for the ship to the owner of the ship. Then after that, they sell the ship to that breaker who gives the highest vessel scrap price and this reselling of scraps is quite a profitable business.

 

Most of the time ship owners do not enter into direct contact with the beaching. By taking the help of cash buyers they avoid legal, financial hazards, and other risks related to the ship recycling business. They do not become responsible if the demolition of the ship causes an accident or do not abide by the pollution control law. On behalf of them, cash buyers take all the responsibilities. In most cases, cash buyers and scrap dealers become the same person to enjoy the full profit. Cash buyers buy the broken ship from where it is or in the second case the shipowner delivers the vessel to an agreed location. Dismantled vessels are then resold to beaching Yards in Bangladesh, India, and Pakistan. Pakistan ship recycling companies have recently applied for a green Yard certificate. In Bangladesh, there is only one green Yard certified company.

 

Ship breaking in turkey is carried out in a state-owned Industrial Zone but the recycling business is leased out to private companies. Ship recycling is a booming business in Turkey where five ships are being dismantled for scrap. Before, at pre-pandemic time only cargo or container ships were getting dismantled. But after the pandemic cruise ships also are coming here to get dismantled and have accelerated the growth of ship recycling business all over the world. The COVID situation has affected badly the cruise business all over the world. When the ship could not find work, they get dismantled. A team of 2500 people takes near about six months to dismantle a passenger ship fully. They are trying to change the crisis into an opportunity by employing people continuously. The metal portion of the ship is sold as scrap but the nonmetal portion does not go to waste as most of them are sold to hotel operators.

 

India is the home of one of the largest ship-breaking facilities in the world with over 150 yards along its coast. Every year near about 6.2 million GT is scrapped in India which accounts for 33% of the total scrapped tonnage in the world. However, health and environmental concerns have led to the adoption of new policy regimes at the international level. This ship-breaking business is a highly lucrative as well as competitive business and ship recycling companies in India have to adopt health and environmental regulations so that they can run the business smoothly in this competitive world. Indian companies need to find out the right partners to work with to get consent from Hong Kong Convention as well as EUSRR.

 

Most of the companies in India are HKC (Hong Kong Convention) certified and maintain the green norms of world standards. Some india ship breaking yards are so big that they have diversified their business in many fields like buying and selling ship scrap. These companies have global recognition and have established their office in Dubai, Hong Kong, Hamburg, Greece, and Japan. The analysis regarding the evaluation of the vessel scrap market and the risk factor attached to it is so perfect that these companies play the role of perfect coordinator. Moreover, their association with other ship recyclers across the globe is so strong that the ship is delivered to their yard without any glitches. The goal of most companies is smooth transitions and handover of ship scrap. The companies are consistently improving to meet higher standards of green ship recycling.