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 is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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