Beijing extends ship scrapping subsidy

Beijing extends ship scrapping subsidy

Beijing: Beijing’s ship scrapping subsidy is to be extended as China fights rampant overcapacity in its national merchant fleet.

The Ministry of Transport said in a statement today that the program – which gives shipping lines subsidies of 1,500 yuan ($241.67) per gross ton to replace old models with newer, greener ones – would be extended to the end of 2017. The initiative was first launched towards the end of 2013. State-run lines in particular have rushed to follow the program, their willingness to scrap latterly seeing them get greater state-backed financing for a new raft of newbuilds.

Despite the subsidy program, Chinese ship recyclers continue to report very tricky operating conditions with most still in the red, and none of them able to compete price-wise with their Indian sub-continent rivals.

Jason Jiang

Jason worked for a number of logistics firms following his English degree, then switched this hands-on experience to writing and has since become one the most prolific writers on the diverse China logistics industry writing for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week. Jason’s access to the biggest shippers with business in China has proved an invaluable source of exclusives.

Related Posts