The Yanda Shipping Company which owned the wrecked ship "Dashun", has been forced to suspend its operations from November 26 by the Ministry of Communications.

Lashing winds and towering waves wrecked the 9000-ton ship " Dashun" late Wednesday near the port of Yantai, in east China's Shangdong Province while on its way to the northeastern port city of Dalian in Liaoning Province. The vessel was carrying 302 passengers and crew. Twelve people were rescued.

An official directing rescue operations said that the 22 survivors of the tragic incident are now being taken good care of at a local hospital.

It was the second accident involving a vessel operated by Yanda Shipping Company just one month earlier. The other ship, "Shenglu" caught flames and sank near the port of Dalian in October, leaving one man dead and another missing.

The Ministry of Communications has ordered the Yanda Shipping Company to conduct a thorough investigation into the safety of its vessels and improve personnel training.

Huang Zhendong, minister of Communications, said that a second vessel incident within two months from the same shipping company is evidence enough of poor safety practices. Huang said "the company will not be allowed to resume its operations until strict safety measures are put in place."

At a televised conference today, the minister also urged shipping companies nationwide to improve safety awareness. Routine check-ups of shipping vessels before the traditional Spring Festival will start ahead of schedule this year.

The ministry also issued an urgent circular today requesting shipping companies to give top priority to safety practices. The circular outlines seven specific requirements, including setting up responsibility systems and improving the reporting of maritime disasters. (Xinhua)