Shipping companies and freight companies will face new incentives for keeping their products up-to-date.
The U.S. Department of Transportation announced Tuesday that it would award incentives to shipyard operators and manufacturers to reduce the amount of time their ships are at sea and maintain their fleet.
The incentives are intended to make it easier for shipyards to improve their fleets, but they also may make it harder for some of the nation’s largest companies to maintain the ships they have in service.
The incentive program will offer companies the ability to receive $10,000 per shipyard that complies with a federal inspection and maintenance program and pays a $1.75 million maintenance fee per year for 10 years.
It will also give an incentive to shipyards that meet a minimum maintenance level of $1 million per year.
“It’s going to create a lot of incentives for them to take on those costs and to put in place some additional resources to ensure that their vessels are in the best condition possible,” said Mark Regan, an analyst at Gartner.
The program has been in the works for a few years and has focused on the U..
S.-based shipping industry, which has faced a glut of new ships over the past decade.
The department said it is expected to make about $6.3 billion in additional incentives in 2021 and $6 billion in 2021-22.