China to restrict new shipbuilders
February 23, 2009 by SwizStick
Filed under China, Seafreight
As ocean carriers are facing a glut of excess capacity from too many new ship orders from the boom years, demand for shipbuilding has subsequently plummeted. China, a major shipbuilding country, is particularly struggling as demand, according to this article, has sunk 66%. Hence, the Chinese government will ban any new shipyards for three years and also restrict existing shipbuilders from expanding for three years.
China will ban new shipyards for three years and support domestic-vessel purchases as the nation’s shipbuilders struggle with plunging demand amid tighter credit and slowing world trade.
Banks will also be encouraged to increase trade finance to boost ship exports under a plan approved by the State Council, China’s Cabinet, according to a statement posted on the central government’s Website yesterday.
The government will extend financial aid for domestic buyers of long-range ships until 2012, it added.
Hat tip to China Logistics News.
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