Italian shipowners are urging China to take responsibility for the crippling effects overcapacity is having on chartering markets, particularly the dry sector, by introducing a system that for every ship its yards build another is scrapped, in bid to tackle rocketing fleet growth.
Giuseppe Bottiglieri and other owners present at the Mare Forum Italy event in Sorrento said they would like to see China go one step further than the incentive scheme introduced last year aimed at getting domestic owners to scrap unsafe vessels, and balance out new ships entering service with the same number exiting the fleet.
A major concern are elderly ships of around 25-30 years of age bought in the secondhand market over the last two years while prices have been cheap, and which are serving the Chinese coastal trade. Many are thought to be at risk of breakdown or accidents.
“It is very dangerous for shipowners. Those with old ships should be warned that they are running huge risks,” Mr Bottiglieri told the forum, talking about China but also the wider shipowning community. “They should be replaced with new ships.”