Alang Emerges as Primary Graveyard for Sanctioned ‘Shadow Fleet’ Tankers as Legal Pressure Mounts
In a significant shift that appears to be reshaping the global maritime demolition landscape, oil tankers from the so-called “short fleet” — vessels operating under international sanctions — are reported to be increasingly making their final voyage to the shipbreaking yards of Alang-Sosiya in Gujarat’s Bhavnagar district , industry data reveals.
According to latest figures from the ship recycling sector, 26 prohibited vessels with a combined deadweight tonnage of 2.1 million DWT have been reportedly sold for scrapping, with 22 of these being oil tankers. This concentration means that sanctioned tankers now account for a striking 58 percent of all tanker demolition activity worldwide, marking these restricted vessels as the dominant force in an otherwise shrinking market.
The trend reflects, say knowledgeable sources, mounting legal and regulatory pressure on the “shadow fleet” — aging tankers that have been used to circumvent international sanctions , particularly those related to Russian oil exports . As Western sanctions tighten and enforcement mechanisms expand, shipowners who once operated these vessels in regulatory grey zones are now finding it impossible to maintain insurance, classification, or port access, forcing them toward the beaching yards of South Asia.
A Market in Contraction, Except for Banned Tankers
Publicly available facts suggest that the global ship recycling industry has not been immune to broader economic headwinds. Total worldwide demolition activity has contracted by 14 percent year-on-year, falling to 6.4 million tonnes. The tanker segment has been hit even harder, with overall tanker scrapping volumes plummeting by 34 percent to approximately 2.1 million tonnes.
Yet within this declining market, prohibited vessels have carved out an outsized role. While legitimate fleet owners have been holding onto older ships to capitalize on elevated freight rates — particularly in energy transport — sanctioned vessels have no such option. Deprived of insurance coverage, classification society certificates, and banking services, these ships have become toxic assets that can neither trade profitably nor navigate legally.
Industry analysts project that this dynamic will only intensify, with forecasts suggesting that over 100 short-fleet tankers could be directed toward demolition yards in the coming year as regulatory nooses tighten further.
Alang: The World’s Largest Ship Graveyard
Nearly all of this activity is converging on Alang-Sosiya, the world’s largest shipbreaking facility, which handles approximately half of global ship dismantling by volume, the sources underline. The yard, stretching along 14 kilometers of Gujarat coastline, has long been the final destination for decommissioned vessels ranging from bulk carriers and container ships to naval aircraft carriers.
In recent years, Alang is said to have undergone significant upgrades to comply with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships , which entered into force in June 2025. More than 100 shipbreaking plots in the facility now hold Statements of Compliance from international classification societies, meeting standards for worker safety, hazardous waste management, and environmental protection, official sources claim.
However, the influx of sanctioned vessels presents unique challenges. These ships often come with obscured ownership structures, incomplete documentation, and heightened compliance risks for recyclers and financial institutions involved in their purchase. Banks have increasingly refused to issue letters of credit for transactions involving designated vessels, while insurers withdraw coverage, creating bottlenecks that can leave ships stranded in legal limbo for months.
Geopolitical Context and Regulatory Framework
The surge in prohibited tankers heading for scrap is directly linked to expanded sanctions regimes by the European Union and the United States. The EU’s Ship Recycling Regulation (SRR) and the US’s Maritime Security Program have both been instrumental in tightening controls on vessel ownership, operation, and disposal. As these regulations continue to evolve, shipowners and operators are being forced to adapt their strategies to remain compliant.
In conclusion, the Alang-Sosiya shipbreaking facility has emerged as a primary destination for sanctioned tankers from the “shadow fleet,” reflecting the mounting legal pressure on vessels operating under international sanctions. As regulatory nooses tighten further, industry analysts project that this trend will only intensify, with significant implications for global maritime trade and the recycling sector.
Original Article: Alang emerges as primary graveyard for sanctioned ‘shadow fleet’ tankers as legal pressure mounts — Counterview