China announced revisions to it subsidy program for companies breaking old transport ships and single-hulled tankers Monday, but industry insiders said this would do little to cut restrictions on what ships could be broken.
"This will benefit ship owners directly, not us ship breakers. Our shipbreaking orders may increase only slightly at most," a source from Changjiang ShipBreaking Yard said. "As far as I'm concerned, the influence will be the same as before. Ship builders' orders could increase a little."
A number of restrictions would prevent the policy from achieving its goals, industry sources told Platts. Broken vessels must be Chinese and broken by designated ship breakers. Replacement vessels must also be built by Chinese shipbuilders and must be at least equal in tonnage to the broken vessel and would have to be registered with the China Classification Society.
The policy, jointly announced by the ministries of finance and industry and information technology as well as the national development and reform commission, would give ship owners up to Yuan 1,500/gross ton of ship scrapped in subsidies.
Source: platts. 10 December 2013