A two-year subsidy program for the scrapping of dry bulk vessels has made Chinese dry bulk shipowners - as some of the only ones - scrap ships which are younger than 18 years old. 19 out of 28 dry bulk vessels built between 1998 and 1999 have been scrapped between 2013 and 2015 - which proves the significance of the Chinese scrapping subsidies, notes Bimco in a recent analysis.
The Chinese subsidy program started off as a two-year initiative, implemented in 2013, and the program was extended in early 2015. Peter Sand, Chief Shipping Analyst at Bimco, emphasizes in the analysis that although the program above all was meant to make it more attractive to scrap vessels and build new ones, the arrangement does actually benefit the fundamental balance in the dry bulk sector.
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