Taiwanese liner company Wan Hai Lines has taken an unconventional approach to recycling one of its vessels, opting for an engineering-led solution rather than sending the ship to a traditional beaching yard in South Asia.
The carrier has appointed Dubai-based APT Global Marine and Offshore Engineering to handle the recycling of its 4,333-teu container ship Wan Hai 503, which was built in 2005 and suffered extensive fire damage. The decision marks a departure from the industry’s long-established practice of selling end-of-life tonnage to cash buyers for demolition at recycling yards in India, Bangladesh or Pakistan.
According to industry sources, the vessel’s condition following the fire made conventional recycling less straightforward, prompting Wan Hai Lines to pursue a controlled, project-based dismantling process. APT Global Marine and Offshore Engineering is understood to be responsible for developing and executing a bespoke recycling plan, focusing on safety, environmental controls and compliance with international standards.
The move reflects a growing trend among major liner operators to take a more hands-on role in vessel disposal, particularly where damaged ships pose higher environmental or safety risks. By directly contracting a specialist engineering firm, owners can maintain oversight of hazardous material handling, waste streams and worker safety—areas that have come under increasing scrutiny from regulators, financiers and cargo owners.
While South Asia remains the dominant destination for ship recycling due to its cost advantages and capacity, pressure has been mounting on shipowners to demonstrate responsible end-of-life practices. This has been reinforced by the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships and by voluntary commitments from carriers to align with higher environmental, social and governance (ESG) standards.
For Wan Hai Lines, the decision to recycle Wan Hai 503 outside the traditional route underscores a willingness to prioritise risk management and reputational considerations over maximum scrap value. Market participants note that such project-based recycling solutions are likely to remain the exception rather than the rule, but could become more common for fire-damaged or casualty vessels where standard demolition options are limited.
The Wan Hai 503 had been part of the carrier’s intra-Asia network before the incident, and its removal reduces Wan Hai Lines’ exposure to older tonnage as it continues to modernise its fleet.
