Canada Launches Steel Shipping Subsidies Amid Rising Insolvency Rates

A new federal program will provide subsidies to Canadian steel shippers. Under the Commodities Sectoral Support Program, announced on Monday, August 10, steel shippers can apply for a rebate that will offset 50% of the costs to ship domestic steel by rail or marine transport across provinces and territories.

The sale of Moneris Solutions Corp., a payment processing company co-owned by Royal Bank of Canada (RBC) and Bank of Montreal (BMO), is expected to complete soon. Once sold, RBC expects to earn approximately $475 million after tax, while BMO will gain around $600 million.

The Canadian government's subsidies for steel shippers are part of a broader effort to support the country's commodity sector. However, experts warn that the ongoing credit crisis and rising insolvency rates may have more significant implications for Canada's economy than these initiatives.