With the opening of the shipyard operations of a global defense prime contractor in the country, Filipino workers are now gaining a reputation as world-class shipbuilders. President Benigno S. Aquino III, who graced the grand opening of Austal Philippines’ shipyard facility at the West Cebu Industrial Park in Barangay Arpili, Balamban, Cebu, said the Philippines is now the fourth largest shipbuilding country in the world.
Mohammed Shahin Alam's sprawling yard on the muddy beaches of Sitakunda, near the southern port city of Chittagong, is buzzing with activity.There is a constant clanking of metals as hundreds of workers keep stripping iron plates and waste metal from broken ships. Trucks are lined up to carry the scrap metal to the local market.
Ship recycling yards in China are anticipating a deluge of business as owners rush to cash in before steel prices fall further. Recycling prices for old vessels have already dropped by more than 25% in the past quarter and steel prices globally continue to fall.
CRISIL believes that increasing global shipping capacities against a backdrop of weakening in economy will lead to a surge in ship breaking activity in the next couple of years. India's ship breakers will acquire a larger market share globally, supported by favourable demand for steel scrap, and limited competition from other markets, including China and Bangladesh.Trends for India's ship breaking industry, situated at Alang, are counter-cyclical to those for the global shipping industry.