Ship breaking (also known as ship recycling, ship demolition, ship scrapping, ship dismantling, or ship cracking) is a type of ship disposal involving the breaking up of ships either as a source of parts, which can be sold for re-use, or for the extraction of raw materials, chiefly scrap. Modern ships have a lifespan of 25 to 30 years before corrosion, metal fatigue and a lack of parts render them uneconomical to operate. Ship-breaking allows the materials from the ship, especially steel, to be recycled and made into new products. This lowers the demand for mined iron ore and reduces energy use in the steelmaking process. Fixtures and other equipment on board the vessels can also be reused. While ship-breaking is sustainable, there are concerns about its use by poorer countries without stringent environmental legislation. It is also labour-intensive, and considered one of the world's most dangerous industries.

In 2012, roughly 1,250 ocean ships were broken down, and their average age was 26 years. In 2013, the world total of demolished ships amounted to 29,052,000 tonnes, 92% of which were demolished in Asia. As of January 2020, Alang Ship Breaking Yard in India has the largest global share at 30%, followed by Chittagong Ship Breaking Yard in Bangladesh and Gadani Ship Breaking Yard in Pakistan.

The largest sources of ships are China, Greece, and Germany, although there is greater variation in the sources of carriers versus their disposal. The ship-breaking yards of India, Bangladesh, China and Pakistan employ 225,000 workers as well as providing many indirect jobs. In Bangladesh, the recycled steel covers 20% of the country's needs and in India it is almost 10%.

As an alternative to ship breaking, ships may be sunk to create artificial reefs after legally mandated removal of hazardous materials (though this does not recycle any materials), or sunk in deep ocean waters. Storage is a viable temporary option, whether on land or afloat, though most ships will eventually be scrapped; some will be sunk, or preserved as museums.

Wooden-hulled ships were simply set on fire or "conveniently sunk". In Tudor times (1485–1603), ships were dismantled and the timber re-used. This procedure was no longer applicable with the advent of metal-hulled boats in the 19th century.

In 1880 Denny Brothers of Dumbarton used forgings made from scrap maritime steel in their shipbuilding. Many other nations began to purchase British ships for scrap by the late 19th century, including Germany, Italy, the Netherlands and Japan. The Italian industry started in 1892, and the Japanese industry after the passing of an 1896 law to subsidise native shipbuilding.

After suffering damage or disaster, liner operators did not want the name of a broken ship to tarnish the brand of their passenger services. Many Victorian ships made their final voyages with the final letter of their name chipped off.

In the 1930s it became cheaper to "beach" a boat by running her ashore—as opposed to using a dry dock. The ship would have to weigh as little as possible and would run ashore at full speed. Dismantling operations required a 10-foot (3 m) rise of tide and close proximity to a steel-works. Electric shears, a wrecking ball and oxy-acetylene torches were used. The technique of the time closely resembles that used in developing countries as of 2020^[update]. Thos. W. Ward Ltd., one of the largest breakers in the United Kingdom in the 1930s, would recondition and sell all furniture and machinery. Many historical artifacts were sold at public auctions: the Cunarder RMS Mauretania, sold as scrap for £78,000, received high bids for her fittings worldwide. However, any weapons and military information, even if obsolete, were carefully removed by Navy personnel before turning over the ship for scrapping.