Ship recycling

When a ship goes for recycling

Mexican law defines desguace (ship breaking) as dismantling a vessel and separating its structural elements, hull and decks¹. A ship gets there for one of these reasons:

• End of service life

  Keeping the hull, machinery and certificates in order costs more than the ship earns in service.

• Casualty

  A fire, a grounding or a sinking leaves the hull unable to sail again. If it is sunk or aground, see abandoned and sunken boats.

• Abandonment

  If a temporary lay up expires and the ship does not return to service, the port captaincy can declare it abandoned and auction it whole or for scrapping¹.

• Fleet renewal

  Shipping lines, fishing companies and offshore service firms retire units they no longer operate.

The legal process in Mexico

Ship recycling is authorised by the port captaincy (capitanía de puerto) of the Navy Ministry (SEMAR). The procedure is SEMAR-05-020 and it can be filed by the owner, the operator, the shipowner, the shipping agent or their legal representative². What it requires, in order:

1. 01

   Flag surrender and deregistration

   They come first: the law does not authorise scrapping a ship that is still flagged and registered¹².

2. 02

   Environmental opinion

   The competent environmental authority where the work takes place must give a favourable opinion¹.

3. 03

   Application and file

   Name, flag and gross tonnage of the ship; who will do the work; where; start and end dates; a certificate that the ship is free of flammable gases; proof of ownership or lawful possession; and a work programme³².

4. 04

   Berth in port

   If the work is inside a port area, the port administrator assigns the berth³.

5. 05

   Guarantee

   A guarantee or insurance policy covering damage to waterways, port facilities and the marine environment, salvage or recovery of the remains and cleanup of the area¹³.

6. 06

   Fee

   For 2026 the Federal Fees Law sets MXN 10,424.08 for the authorisation⁴. The procedure sheet, dated 2024, still shows MXN 9,607².

7. 07

   Answer

   The captaincy has up to 20 working days; if it does not answer, the application is deemed denied. The authorisation ends when the work in the programme is finished².

The Regulations also require compliance with international treaties and the International Maritime Organization (IMO) Guidelines on Ship Recycling, Resolution A.962(23)³.

International rules

• IMO, in force since 26 June 2025

  Hong Kong Convention

  Every ship carries its own inventory of hazardous materials, with surveys during its life and a final survey before recycling. Ships flagged in a Party can only be dismantled at facilities authorised by their competent authority, and the facility prepares a recycling plan for each ship⁵.

• UN, hazardous waste

  Basel Convention

  A ship can become waste under the convention, and it carries hazardous materials such as asbestos, PCBs and waste oils. Since ships sent for recycling rarely fly the flag of the country where they are recycled, sending one can be a transboundary movement of hazardous waste⁶. Mexico ratified the convention on 22 February 1991⁷.

• Resolution A.962(23)

  IMO Guidelines

  Adopted in 2003, they give advice to everyone involved: flag, port and recycling States, shipowners, shipyards and recycling facilities⁵. Mexico's Regulations cite them for ship recycling³.

If your ship will leave the country to be recycled, check first with the environmental authority whether the shipment counts as a movement of hazardous waste, and whether its flag State is a Party to the Hong Kong Convention.

The six stages of ship recycling with Bluegreen

1. 01

   Assessment

   We review photos, measurements and documents for the vessel and visit it when needed.

2. 02

   Planning

   We draw up the cutting plan, the permits and the schedule, and give you a written offer.

3. 03

   Preparation

   Before the first cut, fuel, oils and waste are removed and the gas free certificate is obtained². Used oils, lead batteries and polychlorinated biphenyls go to hazardous waste management⁸.

4. 04

   Dismantling

   The ship is cut in sections afloat, in dry dock or in a yard, depending on the ship, the site and what the port captaincy authorises.

5. 05

   Recovery

   Steel, non ferrous metals and reusable equipment are separated.

6. 06

   Removal and logistics

   Every load is weighed and leaves with a Carta Porte and a CFDI. See regulation.

What to send for a first assessment

With that we make the first assessment and tell you what else we need for the written offer. We work in every state of Mexico and assess projects abroad. Write to us or use the button on this page.

What a ship's metal becomes

A ship going for recycling is sold by its lightweight tonnage (LDT): the weight of the hull with its machinery and equipment. Whether it arrives under its own power or has to be towed also counts. Generally 95% of the hull is mild steel, 2% stainless steel and 3% other metals such as brass, aluminum, copper and bronze⁹.

Hull steel reaches the steel mill as heavy melting scrap and plate. See the impact of recycling it.

Why it matters where a ship is broken

• 409ships were dismantled worldwide in 2024; 255 in South Asian yards ¹¹
• 80%of 2024 tonnage was broken on beaches in Bangladesh, India and Pakistan ¹¹
• 9workers died and 45 were injured in those yards in 2024 ¹¹

A tidal beach has no infrastructure to contain and manage hazardous materials¹², and an end of life ship carries asbestos, PCBs and waste oils⁶. In Mexico the authorisation requires a prior environmental opinion and a guarantee that covers cleanup of the area¹.