Update on Bangladesh Ship Breaking Yard Industry (2026)
The ship breaking industry of Bangladesh, centered mainly around Sitakunda near Chittagong, remains one of the largest ship recycling sectors in the world. For decades, this industry has supplied a huge portion of Bangladesh’s steel demand and created employment for thousands of workers directly and indirectly. (Wikipedia)
However, the industry is currently facing one of its most difficult periods in recent years. Due to the ongoing US dollar shortage in Bangladesh, many ship yard owners are struggling to open Letters of Credit (LCs) required to purchase old ships from international markets. Rising global ship prices, banking restrictions, and unstable freight markets have made importing scrap vessels much more expensive than before. (The Financial Express)
As a result, the number of active yards has significantly decreased compared to previous years. While the Sitakunda coast once had around 100 yards, only a smaller portion remain regularly active today. Many investors entered the business without enough long-term experience and suffered major financial losses during market instability. Several rerolling mills and steel-related businesses also slowed down due to raw material shortages and changing steel prices. (SENSREC)
At the same time, environmental and worker safety concerns continue to bring global attention to the industry. International organizations and environmental groups have repeatedly raised concerns about pollution, hazardous waste, worker safety, and the impact on the coastal ecosystem. (The Daily Star)
Because of stricter environmental regulations and international pressure, many smaller or non-compliant yards have closed over the years. Bangladesh has been trying to modernize the sector under international standards such as the Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships, which officially entered into force in 2025. Several Bangladeshi yards have already upgraded facilities and received compliance certifications, though the transition remains challenging and expensive for many operators. (Wikipedia)
Despite all these challenges, the ship recycling industry remains extremely important for Bangladesh’s economy. The yards continue to supply recycled steel, marine equipment, machinery, furniture, and reusable ship materials across the country. For photographers, researchers, industrial travelers, and documentary enthusiasts, the ship breaking yards of Sitakunda still offer one of the most unique and visually powerful industrial landscapes in South Asia.