Dry bulk industry association Intercargo is warning there will not be enough approved shipyards to scrap a fleet of bulkers flagged in the Europe larger than panamax size when the regional ship recycling regulation (SRR) kicks in next year.

The SRR allows the demolition of ships flagged in Europe at European Commission-approved yards, comprising 23 European facilities, two Turkish yards and one in the US.

According to Intercargo, 1,098 bulkers have been demolished since 2015, but only 26 were torched outside Bangladesh, India or Pakistan.