China has expressed interest in revitalizing its ship demolition industry, according to the International Association of Dry Cargo Shipowners.
Intercargo reckons China, once a major destination for scrap tonnage, has the best potential "to become one of the world's largest demolition centers" again.China "is again looking at increasing its current share of the market," Intercargo said in its latest monthly bulletin on the dry cargo shipping market.
During a recent visit to China by an Intercargo delegation, the Chinese minister of communications, Qian Yong Chang, promised to continue "the reform and open policy" and to promote further multilateral and bilateral cooperation in shipping services.
While admitting that Chinese shipping carries about 50 percent of the country's foreign trade, the minister said government departments no longer assigned proportions of cargo to domestic or foreign-flag ships. Nor do they impose any cargo share on national vessels through administrative measures, the Intercargo delegation was told.
The reference to no cargo allocation seems to be new, according to Intercargo.
An Intercargo team also visited Japan, where shipbuilders admitted there was a real threat of overtonnaging because of the near-dormant state of the ship demolition market.