Environmental, Social & Governance

Insight: Unveiling the Hidden Costs of Shipbreaking—Balancing Industry Necessity with Environmental and Human Impact

Exploring the complex intersection of economic imperatives, worker safety, and environmental responsibility in global ship disposal

Baibhav Mishra, SME News Service

Introduction

Shipbreaking, also known as ship recycling, is the process of dismantling decommissioned ships to recover valuable materials like steel, aluminum, and other components. While vital to the maritime industry, shipbreaking presents grave hazards to workers, local communities, and the environment.

Addressing these issues requires strategic management, regulatory oversight, and sustainable practices to balance economic benefits with social and ecological responsibilities.

The Hazards of Shipbreaking

Shipbreaking is inherently hazardous, with risks including structural collapses, fires, toxic chemical exposure, and accidents involving heavy machinery.

Ship Breaking: Sustainability and Hazards in the Global Industry

Workers often operate without adequate safety gear due to lax regulations, particularly in developing countries, leading to high injury and mortality rates.

According to recent data, the International Labour Organization estimates that the shipbreaking industry accounts for approximately 1,200 fatalities annually, mostly among informal workers.​

Environmental hazards are equally severe. Ships contain hazardous materials such as asbestos, polychlorinated biphenyls (PCBs), heavy metals, and oil residues. Improper disposal of these substances results in soil and water contamination, adversely affecting local ecosystems and communities.

The infamous Alang shipbreaking yard in India, for example, handles about 1,200 ships annually, generating significant environmental concerns due to inadequate waste management systems.​

Geographical Hotspots and Key Regions

Shipbreaking is primarily concentrated in developing countries where environmental regulations are weaker. The leading areas include:

  • Alang, India: Responsible for dismantling around 80% of ships in India, with significant ecological and social issues.

  • Rah réparation, Bangladesh: Known for high employment but plagued by unsafe working conditions.

  • Chittagong, Bangladesh: A major hub with extensive shipbreaking activity but facing challenges in pollution control.

  • Aliağa, Turkey: More regulated but still grappling with environmental impacts.

  • Gulf countries: Such as the UAE, where stricter standards are being adopted, but shipbreaking activity is comparatively lower.

These regions often lack proper land-based waste treatment facilities, making environmental management difficult.​

Impact on Communities and Workers

Local communities living near shipbreaking yards face health risks due to toxic exposure, polluted water sources, and airborne contaminants. Chronic illnesses, such as respiratory problems, cancers, and skin diseases, are increasingly reported among residents.​

Workers, who are often migrants or low-income laborers, endure poor working conditions, minimal safety protocols, and low wages. Child labor remains a disturbing issue in some regions.

Recognizing this, international agencies like the International Maritime Organization (IMO) promote the Hong Kong International Convention, aiming to improve safety and environmental standards, though widespread enforcement remains a challenge.​

Environmental Concerns and Sustainable Management

Shipbreaking contributes significantly to marine and terrestrial pollution. The release of asbestos fibers, PCBs, and oils contaminates soil, groundwater, and marine ecosystems, threatening biodiversity and human health.

Recent statistics indicate that improper handling of hazardous waste from ships is responsible for the death of numerous marine species annually, and ongoing pollution has led to sediment accumulation of toxins in coastal regions.​

To address these concerns, efforts include:

  • Enforcing international conventions like the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships.

  • Developing land-based shipbreaking yards with strict environmental controls and waste treatment facilities.

  • Promoting ship design for easier dismantling and reduced hazardous material use.

  • Engaging local communities in environmental monitoring and providing alternative livelihoods.

Moving Towards a Sustainable Future

The future of shipbreaking hinges on sustainable practices that prioritize safety, environmental health, and social equity. Innovations such as eco-friendly ship design, improved waste management, and global compliance standards are critical.

Governments and industry players must work together to create transparent, enforceable regulations, fostering a safer environment for workers and surrounding communities.

To Wrap Up

Shipbreaking is an indispensable industry that supports the global maritime economy but carries immense hazards and environmental risks. Managing these effectively involves implementing stringent safety standards, strict environmental regulations, and community engagement.

Transitioning to sustainable practices not only reduces ecological footprints but also preserves the well-being of vulnerable populations involved in this crucial industry.

A collective effort from policymakers, industry stakeholders, and local communities is essential for steering shipbreaking toward an environmentally responsible and socially fair path.

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