Greater China

Hard times continue for Chinese shipbreaking

Shanghai: The Chinese international ship recycling sector saw another flat week of activity last week, despite the October Golden Week holidays coming to a close.

The sector has been low in activity since Chinese state subsidies were implemented for breaking China-flagged tonnage earlier this year, and is expected to remain that way until the end of next year.

“There are several candidates opening up in the area – but for even those smaller LDT general cargo units it makes sense for them to perform the final voyage over to the sub continent or even to competing South East Asian scrap yards,” said GMS, a leading cash buyer of ships for recycling, in its market report last week.

“The situation is expected to remain the same going into the final few months of the year, and we may only see China emerging as a force once again come the expiry of the state subsidies at the end of 2015.” [13/10/14]

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