Around US$300 million in subsidies has been given to four Chinese shipping lines as the Chinese Government begins a six-year plan to update its shipping industry.
Each of the Chinese lines has received a share of the US$293.3 million investment.
One benefactor, China Cosco, has announced it will spend US$618 million on five new 14,500-TEU ships.
The company also has five 9,400-TEU ships on order at a cost of around US$90 million each.
The funds will largely be spent on ship-scrapping, according to the Journal of Commerce, however funds are also being allocated for the building of new, more environmentally friendly vessels.
The Chinese government has also announced a plan to revitalise the industry which aims to modernise and upgrade carrier fleets.
An emphasis has also been placed on developing the Ports of Shanghai and Dalian to compete with other global ports.
Source: port technology. 2 October 2014