Ocean carriers have lost control of capacity and reverted to price competition to retain volumes, according to analyst Drewry.

That will leave liners operators facing a position where costs will soon exceed revenues, the analyst believes.

“A deep-seated instinct to protect volumes has kicked in, leaving carriers without control of the market,” Drewry said in its latest Container Forecaster.

“While cargo demand has contracted at a faster pacer than many anticipated and some action has been taken to address overcapacity, it has been largely too little, too late,” it added.