Beijing may require state-owned shippers to buy more vessels from China’s domestic shipping industry, Bloomberg reported. Shipbuilders have been hit hard by the evaporation of orders for new ships as global shipping rates have declined. Worldwide orders fell 95% in March. In response, analysts expect the Chinese government to introduce plans to help state-owned firms such as China State Shipbuilding Co and China Shipbuilding Industry Co by forcing local shipping firms to step in where international orders have been abandoned. Last year, China Cosco Holdings, canceled its plans to order 126 new cargo ships. The Baltic Dry Index, seen as a benchmark for commodity shipping rates, has fallen 81% in the past year.
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