China Moves to Help Shipping Industry with Subsidies

In a bid to assist all sectors, China is to increase cash subsidies for scrapping obsolete ships by 50 percent to help cut over-capacity and emissions, reports Bloomberg.

The government will grant 1,500 yuan ($247) per gross ton for shipping companies to replace obsolete ships, according to a statement noted by Bloomberg on the transport ministry website. The award applies to vessels scrapped in the years 2013 through 2015.

Under the new program, ship operators get half the money upon completing scrapping and the rest after placing new building orders, according to the statement. By comparison, under a 2010 rule, they had to complete scrapping and place new ship orders before getting any of the subsidy.

Source: Bloomberg