Oceanex will not be getting a subsidy from the federal government.

The company, which says business has dropped off significantly, has reduced the number of trips to St. John’s from the mainland to two from three. They were told by Transport Canada and finance officials late Friday afternoon that there would be no federal subsidy.

Oceanex, a privately-owned shipping company, is a leading player in the east coast transportation industry.

Others involved in the supply chain say they have the means to pick up any slack created by the reduction in the number of trips to St. John’s.