China ups subsidy for scrapping old ships by 50%

[HONG KONG] China, the world's biggest shipbuilding nation, will increase cash subsidies for scrapping obsolete ships by 50 per cent to help cut overcapacity and emissions.

The government will grant 1,500 yuan (S$309) per gross ton for shipping companies to replace obsolete ships, according to a statement on the transport ministry website yesterday. The award applies to vessels scrapped in the years 2013 through 2015.

Chinese shipbuilders also stand to benefit from the subsidy, half of which is awarded only after replacement orders are placed.