Japanese shipping giant Nippon Yusen Kaisha (NYK) is advancing plans to restart ship recycling within Japan. Earlier this year, NYK signed an MoU with Oono Development to develop a commercial project enabling ship and offshore structure dismantling, with recycled materials converted into steel scrap and other byproducts.
Scheduled for a 2028 launch, Oono’s Shikoku-based drydock, one of Japan’s largest, will have the capacity to handle two VLCCs simultaneously. While electric arc furnaces are not yet producing shipbuilding-grade steel, the potential for recycled metal to become shipyard-grade plates could pave the way for fully circular shipbuilding.
The ship recycling industry has been led by Bangladesh, Pakistan, India, and Turkey since China’s 2019 market exit. New contenders, including Egypt, Brazil, and Bahrain, are also eyeing growth in this sector, which is expected to expand significantly by 2028.
With the Hong Kong International Convention (HKC) for safe ship recycling coming into effect next June, concerns persist over the readiness of many yards. Clarksons Research highlighted that Pakistani yards, in particular, might face challenges meeting the new standards.
Separately, SK Shipping has sold four steam turbine LNG carriers nearing 25 years old for as-is delivery in Singapore at $469 per ldt, citing a downturn in the market for older vessels.
