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People's Daily Online>>China Business

Firms sell ships as 'scrap iron'


19:04, December 08, 2011

BEIJING - In the face of huge profit losses and cash strains, some of China's shipping enterprises, especially small private ones, have been selling ships at dirt-cheap prices as ocean-going business sinks.

In Eastern China's Fujian province, about 80 privately-owned shipping companies are suffering from declining business, and some are selling their ships for the price of scrap iron in order to subsist, the Xinhua-run Economic Information Daily reported Thursday.

The average reading of the Baltic Dry Index (BDI), a key barometer of commodity shipping rates, stood at 1,528 points as of December 6, which was drastically lower than the profit-loss dividing mark of 3,000 points, the report said.

The index had fallen for the fifth straight day to close at 1,848 points on Tuesday, the report said.

Fujian-based shipping companies such as Fujian Guohang Ocean Shipping Co, Ltd have sold ships at sharp discounts this year to offset operating losses and ease cash strains, according to Zheng Qiang, secretary general of the Fujian Shipowners Association.

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wende at 2011-12-0971.251.41.*
I hope the shipping companies can get some loans to save their business and spare some good ships from becoming scrap iron.

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