Every year, hundreds of seagoing vessels are decommissioned worldwide. A large portion of these ships are recycled – mainly in South Asia, particularly in India, Bangladesh and Pakistan. The scrap metal recovered there, primarily steel, is an important raw material. Ship recycling not only contributes to the reutilisation of valuable materials, but also secures numerous jobs.
When modern merchant ships are scrapped today, over 90 per cent of the materials are recycled. In addition to the steel, many components such as anchors, lamps and machinery can be reused. Only a small portion has to be disposed of – in a responsible way.
The aim of the international shipping industry is to make ship recycling not only efficient, but also environmentally and socially responsible. The Hong Kong Convention of the International Maritime Organisation (IMO) provides an important framework for this. It lays down globally applicable standards for safety, environmental protection and transparency when scrapping ships – from the proper disposal of hazardous substances to the certification of recycling yards. Ratification by Bangladesh and Liberia in 2023 paved the way for the agreement to enter into force in 2025. VDR expressly welcomes this important step.

Long before the Convention came into force, numerous shipyards, particularly in India, had already begun to adopt the international standards voluntarily. Investments in modern infrastructure, extensive employee training, improved labour and environmental standards, and methodical handling of hazardous substances show that ship recycling is on the right track in many regions. This development deserves recognition and active support.
An important step towards promoting high standards has also been taken at the European level by adopting the EU regulation on the recycling of ships. However, the challenge lies in international harmonisation. The restriction to certain locations provided for in the regulation means that considerable recycling capacities in third-party countries remain unutilised – even if these shipyards already demonstrably meet international requirements. This can lead to considerable bottlenecks for ships flying the European flag, as the capacities available worldwide cannot be fully utilised. Better international coordination is therefore necessary to combine sustainability, availability and environment protection in ship recycling in an effective way.
VDR is therefore campaigning actively for international harmonisation of the regulations. The involvement of recognised and certified shipyards worldwide not only strengthens environment protection and social responsibility, but also creates predictability for shipping companies and shipyards alike. The aim is to establish responsible ship recycling practices globally and improve them steadily.







