CHINA is rolling out new policies to aid the embattled shipping industry with a pilot program in Shanghai to help ease shippers' capital pressure.

Under the new policy by the Ministry of Transport, ships leased by shipping companies from financing firms could be regarded as part of the shipper's own fleet upon agreement between the two sides and on condition paid rents reach certain levels.

That means rented vessels could receive the same fiscal subsidies as those owned by shipping firms and be exempted from some transaction fees, according to shipping executives.

The policy could also facilitate the registration of such ships with transport and maritime authorities.

"This policy is a kind of exploration," said a statement released yesterday after a meeting between the transport ministry and the Shanghai government.

It added that Shanghai was chosen because the city has relatively mature financial and shipping sectors.

The two sides signed a memorandum of understanding yesterday in Shanghai to deepen cooperation in advancing the city's plan to build itself into a global shipping center by 2020.

The efforts come as the global shipping market has been depressed after being hit by overcapacity, slowing demand and falling freight rates.

"This (policy) will ease capital pressure, help shipping companies better utilize existing capacity and cope with the grim situation in today's shipping market," the statement said.

source:shanghai daily