According to Danish maritime data analysis company, Sea-Intelligence, container shipping lines responded differently to the drop in demand caused by Covid-19 in 2020, compared to the container demand collapse that began in September 2022.

In 2020, carriers quickly reduced liner capacity to match the drop in demand.

However, in 2022, despite having the ability to reduce capacity, container lines chose not to do so, leading analysts to believe that carriers are engaging in a “price war.”

Alan Murphy, CEO of Sea-Intelligence, states that allowing overcapacity to persist leads to low utilization and a continued drop in freight rates.