Economic and environmental perspectives of end-of-life ship management

The economic feasibility and environmental impacts of three examples of end-of-life management options were analyzed with a cost-benefit analysis and an environmental life cycle assessment. The economics of ship recycling methods depend on various parameters such as the market price of reclaimed materials, ship purchase price, environmental and work safety regulation fees, labor costs, and overhead costs. Standard recycling methods are typically used in the U.S., EU, China, and Turkey. The example of recycling the USS Forrestal, showed that standard ship recycling methods can be profitable. Standard ship recycling methods must follow strict regulations, and therefore, can only release negligible amounts of hazardous substances into the environment. In addition, the reclaimed materials from standard ship recycling methods provide various life cycle environmental benefits. Substandard recycling methods, such as beaching, used in southern Asia countries, allow shipyard owners to outbid standard method recycling companies and remain profitable due to a lack of enforced environmental regulations. The non-compliance with environmental regulations, allows these substandard methods to release a large amount of harmful substances into the environment. The reefing option is neither economically viable nor completely safe for the environment, but it could improve the local economy and underwater habitats for local sea life.