Ship breaking Ship breaking or ship demolition is a type of ship disposal involving the breaking up of ships for scrap recycling . Most ships have a lifespan of a few decades before there is so much wear that refitting and repair become uneconomical . Ship breaking allows materials from the ship , especially steel , to be recycled . Equipment on board the vessel can also be reused . As an alternative to ship breaking , ships are also sunk to make artificial reefs after being cleaned up . Other possibilities are floating ( or land - based ) storage . History and transition . Until the late 20th century , ship breaking took place in port cities of industrialized countries such as the United Kingdom and the United States . Today , ships are broken down mostly in developing countries , due to lower labor costs and less stringent environmental regulations on the disposal of toxic substances such as lead paint and asbestos . Those " breakers " that still remain in the United States work primarily on government surplus vessels . Some breakers operate in Dubai , United Arab Emirates , and specialize in tankers . China used to be an important player in the 1990s , but is now trying to reposition itself in more environmentally friendly industries . Health and environmental risks . In addition to steel and other useful materials , ships ( particularly older vessels ) can contain many substances that are banned or considered dangerous in developed countries . Asbestos and polychlorinated biphenyls ( PCBs ) are typical examples . Asbestos was used heavily in ship construction until it was finally banned in most of the developed world in the mid - 1980s . Currently , the costs associated with removing asbestos , along with the potentially expensive insurance and health risks , have meant that ship breaking in most developed countries is no longer economically viable . Removing the metal for scrap can potentially cost more than the value of the scrap metal itself . In the developing world , however , shipyards can operate without the risk of personal injury lawsuits or workers ' health claims , meaning many of these shipyards may operate with high health risks . Protective equipment is sometimes absent or inadequate . Dangerous vapors and fumes from burning materials can be inhaled , and dusty asbestos - laden areas are commonplace . In recent years , ship breaking has become an issue of environmental concern beyond the health of the yard workers . Many ship breaking yards operate in developing nations with lax or no environmental law , enabling large quantities of highly toxic materials to escape into the general environment and causing serious health problems among ship breakers , the local population , and wildlife . Environmental campaign groups such as Greenpeace have made the issue a high priority for their activities . List of ship breaking yards . The following are some of world ' s largest ship breaking yards : India . DFIII ] Alternative definition . A ship breaker may sometimes be defined as a crewman without whom a ship cannot put to sea . For example , the Chief Engineer , Medical Officer , and Ship ' s Coxswain are considered ship breakers , particularly on a Navy ship .