China initiates rent-to-own scheme

Shanghai: China is initiating a trial program in Shanghai designed to help the nation’s beleaguered shipowners.

Under the new policy by the Ministry of Transport, ships leased by shipping companies from financing firms could be regarded as part of the owner’s own fleet upon agreement between the two sides and on condition paid rents reach certain levels. That means rented vessels could receive the same fiscal subsidies as those owned by shipping firms and be exempted from some transaction fees, according to shipping executives.

"This policy is a kind of exploration," said a statement released yesterday after a meeting between the transport ministry and the Shanghai government. "This (policy) will ease capital pressure, help shipping companies better utilize existing capacity and cope with the grim situation in today's shipping market," the statement said.  [13/08/12]

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