Ship dismantling cost review

Under the National Maritime Heritage Act of 1994 , the Maritime Administration (MARAD) is required to dispose of obsolete National Defense Reserve Fleet (NDRF) vessels in a manner that maximizes financial returns to the US. There are approximately 112 vessels slated for scrapping, and the number is expected to increase to 152 in 2001. The US Navy estimates that the number of obsolete vessels will grow 10-15 percent each year or approximately 15 vessels per year. Ship dismantling, as defined by MARAD, is any breaking of a vessel's structure for the purpose of scrapping the vessel, including the removal of gear, equipment, or any component of the vessel. Thus the terms ship breaking or ship scrapping are often used to mean ship dismantling.