Joseph Bonney, Senior Editor | Jun 22, 2012 11:49AM EDT
The International Chamber of Shipping wants governments in the Organization for Economic Cooperation and Development to resume negotiations on a global agreement to eliminate market-distorting measures from shipbuilding.
The ICS, whose members represent more than 80 percent of the world’s merchant shipping fleet, said it was disappointed by the OECD’s termination three years ago of negotiations on an agreement to end shipyard subsidies.
The negotiations collapsed amid differences between the European Commission and Asian governments over shipyard subsidies. The OECD Working Party on Shipbuilding is continuing to meet. The ICS said it hopes the group will resume formal negotiations as soon as possible.
ICS said the effect of subsidized shipbuilding has contributed to overcapacity that has weakened carriers’ finances, showing up in carriers’ operating losses.
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