Shipping capacity fell across major merchant vessel types in China's cabotage trade in 2014 from a year earlier, according to the Water Transport Bureau of China's Ministry of Transport.

For bulk carriers over 10,000dwt in the cabotage trade, the overall capacity dropped 3.3 percent YoY to 53.4 million dwt for 1,689 vessels at the end of 2014, which was the first decrease since 2010. Compared to the first half of 2014, the second half saw the fall in capacity at a greater pace.

Last year saw a total of 4.4 million dwt for 108 bulkers in the cabotage trade were demolished earlier than the mandatory retirement age, as the government had introduced subsidies to encourage the early scrapping.

For boxships of over 700teu, the overall capacity also fell 15.0 percent YoY to 427,400teu for 152 vessels at the end of 2014.

Meanwhile, the capacity for oil tankers dipped 5.1 percent YoY to 9.9 million dwt for 1,362 vessels. Similarly, a total of 896,300dwt for 50 oil tankers were scrapped earlier than the mandatory retirement age.

In terms of chemical tankers, the capacity experienced a little change from late 2013, at 1.1 million dwt for 277 vessels at the end of 2014.

At the same time, the capacity for LNG tankers slipped 1.7 percent YoY to 212,600dwt for 70 vessels.