Cargo shipping lines have made heavy weather of the last quarter -- and the worst isn't over.Analysts told Channel NewsAsia the industry slump may last for another 12 months or more, and that the gloomy outlook is expected to last till at least 2013.
Analysts said that is when the shipping industry faces another challenge with more megabox ships coming onboard.
But till then, mergers and acquisitions will likely be the trend as the bigger players may try to take over their smaller competitors.
Japan's largest shipping lines NYK and MOL aren't just cutting back on container capacity.
Freight rates have also been slashed due to an oversupply of vessels.
Island Shipbrokers director of research Katharine Cheong-Koh said: "We are hearing that a lot of these east-west routes like the Asia-Europe routes -- they are actually hovering at the bunker adjustment factors, which is really very, very low.
"Only the big players would be able to participate in the current situation, which is (seeing) some cut-throat price competition right now. That is why they are squeezing out the very small players in the industry. For the smaller shipowners in the sector, they could be going bust or filing for bankruptcy."
Even China, the fastest-growing emerging economy, is affected.
Its biggest shipper, China Cosco, posted a third straight quarterly loss because of plunging container rental prices.
Global shipping in general had its worst performance in at least 11 years in August, which is normally a peak month, according to Macquarie Capital.
Shipping rates for commodities -- measured by the London-based Baltic Dry Index -- have also tumbled, to their lowest in six weeks.
The indicator of worldwide international shipping prices transporting various commodities like coal, iron ore and grain was at 1,859 points on 2 November.
SIAS Research lead analyst Ng Kian Teck said: "We have seen prices come off because of the weakness in the demand side such as steel. So that may impact the volume for iron ore.
"Another thing we look at is the flood in Thailand - that may have affected car manufacturing output as demand for car transportation will also be impacted."
Shipping rates closely match the outlook for economic growth, and world trade is stalled as consumers spend less.