China to Introduce Policies to Support Shipping Industry

COSCO Guangzhou, image via Wikipedia

(Bloomberg) — China will remove “unreasonable fees” and introduce supportive policies for shipping companies in the second half of the year to help them through an industry downturn, China National Radio reported today, citing a Ministry of Transport official.

The ministry “is pro-actively striving for a reasonable tax burden for the shipping industry and, at the same time clean up unreasonable fees,” Song Dexing, head of the ministry’s water transport bureau, said in the report.

The plan comes as Cosco Shipping Co., a listed unit of China’s biggest shipping group, announced yesterday that its first-half net loss tripled. It didn’t say why.

Data released yesterday showed an unexpected drop in China’s June exports and imports, underscoring the severity of the country’s slowdown.

China Rongsheng Heavy Industries Group Holdings Ltd., the nation’s biggest shipyard outside state control, is seeking financial help from the government, as the nation’s shipowners association forecast a slump in vessel orders will run through next year.

Copyright 2013 Bloomberg.