ICS hits out at China’s ship scrapping policy

Beijing: The International Chamber of Shipping (ICS) has criticised China’s ship scrapping/newbuilding policy, saying it could delay the global recovery of shipping markets and release unnecessary carbon dioxide (CO2) emissions.

China’s incentives to artificially boost shipbuilding through increased scrapping in the country could have a negative impact on the speed with which the global supply/demand balance in shipping is restored, the ICS said today.

The ICS voiced its concerns at a meeting of the OECD Working Party on Shipbuilding, held in Paris today.

Recycling ships earlier than usual and building new vessels could also create more CO2 emissions than could be saved through replacing old vessels with newer, more efficient ones, the ICS said.

China is currently offering subsidies of about $250 per gross tonne for Chinese shipping companies that scrap vessels early and then place orders at Chinese shipyards for at least the same tonnage.

The ICS reminded OECD governments that ships are built with an expected life-span of around 25 years for reasons of safety and economy. In some cases, vessels are currently being recycled at just 15 years old.

Ordering so-called ‘eco-ships’ is not always in the best interests of the owner, their customers or the environment, the ICS told the meeting. [25/11/14]

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