Demolition
The sale of a ship at the end of her life for recycling, priced per light displacement tonne (LDT).
- Category
- Markets and Pricing
- Last reviewed
How it works
Demolition (or recycling) is the sale of an end-of-life vessel to a recycling yard, where she is dismantled and the steel and equipment recovered. Demolition prices are quoted in dollars per light displacement tonne (LDT), the weight of the ship’s steel structure.
Demolition is the natural floor under asset values: when freight is weak and old ships are uneconomic, scrapping rises and removes tonnage, which eventually supports the market. Most recycling capacity is in South Asia, with the EU regulating where EU-flagged ships may be recycled.
Where it shows up on The Maritime
Also known as: ship recycling, scrapping, demo.
Related terms
Sale & Purchase (S&P)
The secondhand market for trading existing ships, and the desk that brokers those transactions.
Automated Valuation Model (AVM)
A model that estimates a ship’s market value from recent sales of comparable vessels.
Newbuilding
A ship ordered new from a shipyard, and the forward orderbook of such vessels that signals future fleet supply.
Light Displacement Tonnage (LDT)
The weight of the ship herself (steel, machinery and equipment) empty of cargo, fuel and stores; the basis for scrap pricing.
More markets and pricing terms
A plain-English reference definition: our own explanation of a standard shipping concept, not a licensed source or legal advice. See the full glossary or the broader maritime dictionary.
Last reviewed: .