Danish maritime data analysis firm Sea-Intelligence said that freight rates are primarily determined by changes in vessel utilisation, which in turn means that when shipping lines deploy “too much” capacity, they effectively contribute to falling rates, and in times of endemic over-supply, such as those we are currently heading into, over-capacity becomes “fuel” for a price war.
“While there is to objective measure for “too much” capacity, a starting point would be to compare how capacity growth...