Due to a global steel shortage, recycling facilities in Alang, India, have seen a surge in scrapping aging shadow fleet vessels. Since early 2025, at least 33 tankers sanctioned by the US, EU, or UK have been sent there for recycling, accounting for nearly a quarter of all ships scrapped in the region. This trend is creating a new subsector in the ship-breaking industry as recyclers struggle to find alternative sources of scrap metal.
Industry leaders are now pushing for the easing of financial restrictions to allow these vessels to be processed at certified yards. Providing a legal pathway for recycling is seen as a way to ensure old tankers are safely removed from the market rather than continuing risky operations. Scrapping in Alang offers a final solution to permanently reduce the size of the parallel shipping networks used to bypass energy sanctions.
