A number of different methods exist for disposing of a ship after it has reached the end of its effective or economic service life with an organisation.

Options

Although many options are technically possible, some, such as deep water sinking, are not used for non-military vessels, or have come under increased scrutiny. Options currently available include:

• Hulking
  Hulk (ship)
  A hulk is a ship that is afloat, but incapable of going to sea. Although sometimes used to describe a ship that has been launched but not completed, the term most often refers to an old ship that has had its rigging or internal equipment removed, retaining only its flotational qualities...
  
  
• Ship breaking
  Ship breaking
  Ship breaking or ship demolition is a type of ship disposal involving the breaking up of ships for scrap recycling. Most ships have a lifespan of a few decades before there is so much wear that refitting and repair becomes uneconomical. Ship breaking allows materials from the ship, especially...
  
   (involving recycling)
• Use as an artificial reef
  Artificial reef
  An artificial reef is a human-made underwater structure, typically built to promote marine life in areas with a generally featureless bottom, control erosion, block ship passage, or improve surfing....
  
  
• Donation
• Sale for re-use
• Floating (or drydock) storage
• Deep water sinking

Description of options

• Hulking
  Hulk (ship)
  A hulk is a ship that is afloat, but incapable of going to sea. Although sometimes used to describe a ship that has been launched but not completed, the term most often refers to an old ship that has had its rigging or internal equipment removed, retaining only its flotational qualities...
  
   was a traditional method of converting a hull to another purpose after its usefulness as a ship had ended. The ship is stripped of its motive equipment (sails and rigging or motors) and is used or any of variety of purposes. This practice is still in use to a limited extent.

• Ship breaking
  Ship breaking
  Ship breaking or ship demolition is a type of ship disposal involving the breaking up of ships for scrap recycling. Most ships have a lifespan of a few decades before there is so much wear that refitting and repair becomes uneconomical. Ship breaking allows materials from the ship, especially...
  
   is the most common and most environmentally accepted method of ship disposal. According to various organisations, only facilities approved by the Basel Action Network
  Basel Action Network
  The Basel Action Network is an non-governmental charitable organization working to combat the export of toxic waste, toxic technology and toxic products from industrialized societies to developing countries. BAN operates globally but is based in Seattle, Washington, United States, with a partner...
  
  's "Green Ship Recycling" program are environmentally sound options.

• Artificial reef
  Artificial reef
  An artificial reef is a human-made underwater structure, typically built to promote marine life in areas with a generally featureless bottom, control erosion, block ship passage, or improve surfing....
  
  ing is the sinking of ships offshore to form reef
  Reef
  In nautical terminology, a reef is a rock, sandbar, or other feature lying beneath the surface of the water ....
  
  s. Before sinking, the vessel needs to have all toxic components and electrical devices removed. Depending on the ship design this may be done relatively easily, although some designs present certain difficulties. Also the reef location needs to be determined. For these, approval must be obtained from the state authorities. According to the Rand Corporation, artificial reefing to form wreck diving sites
  Sinking ships for wreck diving sites
  Sinking ships for wreck diving sites is the practice of scuttling old ships to produce artificial reefs suitable for wreck diving, to benefit from commercial revenues from recreational diving of the shipwreck, or to produce a diver training site....
  
   is however still a profitable option, as the reefs are anticipated to be visited by tourists, thus generating an income.

• Donation, or sale for re-use, allows for the refurbishment and reuse of a vessel by a secondary party. Such uses can include further life as a ship, houseboat
  Houseboat
  A houseboat is a boat that has been designed or modified to be used primarily as a human dwelling. Some houseboats are not motorized, because they are usually moored, kept stationary at a fixed point and often tethered to land to provide utilities...
  
  , office, hotel, museum, or conference center.

• Deep water sinking or SINKEX
  SINKEX
  SINKEX or Sink Exercise is a US military term for the test of a weapons system usually involving a torpedo or missile attack of an unmanned target ship. The US Navy sometimes refers to this type of exercise as a HULKEX...
  
   is the sinking of ships during target practice
  Target practice
  Target practice refers to any exercise in which projectiles are fired at a specified target, usually to improve the aim of the person or persons firing the weapon....
  
  . Before the ships are sunk they are cleaned of all toxic components and devices, so that no environmental pollution should occur.

• Floating or drydock storage involves storing the boat on or off water for a period of time. Storage on water is an expensive method as after 30 years the ships need extensive repairs due to corrosion by the seawater. Storage in drydocks is also expensive. Regular storage on shore, outside of a dock, is also a possibility.

Illegal ship disposal

Some shipping companies have in the past attempted to dispose of their ships illegally, often due to the high costs of sanitizing these ships in a legal way as a result of the presence of large quantities of toxic compounds and materials. Prominent examples of where environmental concerns have complicated the planned disposal of ships have been the Norwegian Cruise Lines vessels SS Norway and SS Oceanic

SS Independence

SS Independence was an ocean liner built in 1951 for American Export Lines. Between 1974 and 1982 she sailed as Oceanic Independence for Atlantic Far East Lines and American Hawaii Cruises, after which she reverted to her original name...

, as well as the French aircraft carrier

Aircraft carrier

An aircraft carrier is a warship designed with a primary mission of deploying and recovering aircraft, acting as a seagoing airbase. Aircraft carriers thus allow a naval force to project air power worldwide without having to depend on local bases for staging aircraft operations...

 Clemenceau

Clemenceau (R 98)

Clemenceau , often affectionately called "le Clem'", was the lead ship of her class, and the 6th aircraft carrier of the French Navy, serving from 1961 to 1997. She was the second French warship to be named after Georges Clemenceau, the first one being a battleship of the Richelieu class, laid...

. Although in the past there were few effective controls on ship disposal, and the risk of being caught was therefore limited, national authorities as well as environmental organisations are now more vigilant. Ships are sometimes tracked when they are nearing the end of their lifespan. Companies caught disposing of ships illegally face hefty fines.