• Analysis and Studies
• Scrap vessels: import and export

Scrap vessels are decommissioned ships that are no longer economically viable to repair, often due to aging or technological obsolescence: they are sent to shipbreaking yards, where they are dismantled, and valuable materials, especially steel, are recycled. While this process supports the steel industry and promotes a circular economy, it also poses significant environmental and safety risks: toxic materials like asbestos and oil residues need to be handled carefully, but poor working conditions in some countries lead to pollution and worker hazards. International regulations aim to improve safety and environmental standards, though enforcement remains inconsistent across the industry.

In 2022, Scrap vessels were the world's 785th most traded product, with a total trade of $1.95B, and between 2021 and 2022 the exports decreased by -5.42%, from $2.06B to $1.95B.

In 2022 the most significant exporter was Thailand, with a trade of $271M, ahead of South Korea ($195M), Japan ($175M), Norway ($143M), and United Arab Emirates ($141M). Whereas the country which imported scrap vessels the most was India, with a trade of $713M, followed by Thailand ($257M), Pakistan ($240M), Turkey ($152M), and Namibia ($131M).

The global scrap vessel trade is dominated by a small number of key players, influenced by the capacity of shipbreaking industries and steel recycling facilities. Thailand leads as the largest exporter, capitalizing on its regional location and strong connections with Southeast Asian partners.

On the other hand, South Korea, Japan, and the United Arab Emirates have highly concentrated export portfolios, heavily reliant on a few key destinations, particularly India and Pakistan, highlighting the concentrated and regionally dependent nature of the trade.

1. Thailand (13.9%): 44.6% Singapore. 34% Chinese Taipei, 21% Indonesia
2. South Korea (10%): 78.5% India, 16.4% Turkey, 2.16% Pakistan, 2.76% Saint Kitts and Nevis
3. Japan (8.99%): 83.7% India, 11.5% Turkey, 4.17% Pakistan
4. Norway (7.33%): 72.8% Thailand, 23.2% India, 2.86% Turkey, 1.06% Denmark
5. United Arab Emirates (7.25%): 99.9% Pakistan

The graphic shows India’s pivotal role in the scrap vessel market and reveals how other major importers have specific regional dependencies. India emerges as the top importer, sourcing from a broad range of countries, including South Korea and Japan, while Thailand follows, relying heavily on imports from Norway and the Bahamas.

Pakistan's scrap vessel imports are predominantly from the United Arab Emirates, showcasing a focused trading relationship, while Turkey's imports come from a diverse set of suppliers like South Korea, Japan, and Panama, reflecting its varied sourcing strategy. Namibia, on the other hand, imports all its scrap vessels from the Netherlands, indicating a highly specialized trade connection.

1. India (36.6%): 21.5% South Korea, 20.6% Japan, 9.4% United States, 7.52% Singapore, 5.63% Finland, 4.65% Norway, 3.45% United Kingdom, 3.62% France, 2.18% Brazil, 1.63% China
2. Thailand (13.2%): 40.5% Norway, 33.8% Bahamas, 11.4% Indonesia, 10.2% Panama, 4.13% Vietnam
3. Pakistan (12.3%): 58.8% United Arab Emirates, 8.02% Egypt, 6.52% Indonesia, 6.07% Saudi Arabia, 4.72% Malaysia, 3.11% Japan, 1.75% South Korea
4. Turkey (7.8%): 21% South Korea, 13.2% Japan, 10.8% Panama, 9.97% Comoros, 9.11% Bahamas, 6.07% France, 5.93% Spain, 4.36% Togo, 2.69% Norway, 2.06% Italy
5. Namibia (6.71%): 100% Netherlands

Between 2021 and 2022, the fastest growing exporter was Thailand, with an increase of $214M, followed by Netherlands ($123M), Namibia ($45.1M), Panama ($37.4M), and Finland ($24.2M).

1. Thailand: from $57M to $271M
2. Netherlands: from $12.2M to $136M
3. Namibia: from $187k to $45.2M
4. Panama: from $9.24M to $46.6M
5. Finland: from $17.1M to $41.3M

Whereas the imports grew the fastest in Namibia, with an increase of $131M, ahead of Singapore ($121M), Chinese Taipei ($94.1M), Indonesia ($59.6M), and South Africa ($45M).

1. Namibia: from $1.26k to $131M
2. Singapore: from $72.6k to $121M
3. Chinese Taipei: from $10.8k to $94.1M
4. Indonesia: from $1.11M to $60.7M
5. South Africa: from $262k to $45.2M

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