According to the shipping association BIMCO, shipowners are expected to scrap twice as many ships over the next 10 years compared to the previous decade. This increase in ship recycling is attributed to tighter emissions control regulations that are pushing carriers to retire and demolish a significant number of vessels. BIMCO’s data shows that in the past 10 years, 7,780 ships with a total deadweight capacity of 285 million tonnes were recycled, with most of them being ships built during the 1990s. However, the capacity built during the 2000s and 2010s is much higher, which is expected to drive the anticipated surge in ship recycling. The stricter limits on greenhouse gas emissions are expected to prompt the early retirement of older ships. The International Maritime Organization (IMO) has introduced measures such as the energy efficiency existing ship index (EEXI) and the annual operational carbon intensity indicator (CII) to monitor and reduce greenhouse gas emissions from maritime shipping. Ships will be rated based on their energy efficiency, with lower-rated ships required to submit corrective action plans if their ratings remain low for three consecutive years.
