Is Ship Breaking Profitable?

Shipbreaking is an extremely profitable business. Scrapping companies pay roughly $400 per tonne, and so, considering the sheer size of the ships that come ashore to be dismantled, the process can easily add up to scrappers collectively paying a total of anywhere between $3m and $10m for a single vessel.

How do ship Breakers make money?

Instead, cash buyers first pay ship owners up-front before the ship reaches its final destination to be dismantled, and then re-sell the ship to the breaker that can offer the highest price, thereby making a profit with the price difference.

How much do ship breakers pay for a ship?

The ship-breaker then acquires the vessel from the international broker who deals in outdated ships. The price paid is around $400 per tonne and the poorer the environmental legislation the higher the price.