Lack of investment capital for developing countries' shipping fleets
The lack of finance for ship acquisition was and remains a major difficulty of developing countries in expanding their national merchant marines. The fact that soft financing for ships has recently been amply available does not necessarily affect the need for general improvements in financing arrangements. Soft financing instruments now available are basically subsidy programmes for ailing shipbuilding industries designed as a temporary measure. Consequently, similar arrangements are not available for the purchase of second-hand tonnage. Furthermore, these instruments would no longer be available should governments of shipbuilding countries, for whatever reason, decide to cease or change the basis of subsidization.
Shipbuilding by developing countries adds to the overtonnage crisis.