The Korea Maritime Institute expects a 4.2% gap between the growth of capacity and volume to drive rates down and intensify competition next year.

South Korea's national marine policy think-tank said at the World Shipping Market 2007 that the world container fleet would grow by 13.9%, and volume by 9.7%, resulting in more fierce competition, further rate decline and profit deterioration.

KMI suggested a restructuring of services and co-operation among shipping companies will be the keys to improve the box shipping market next year.

It forecast the world's ports to handle 485.1m teu, or 9.8% more cargo than in 2006.

The institute expected Northeast Asian ports' throughput to achieve an 11.1% year-on-year growth and take 36.3% of the world's total volume.

An 8.1% increase was forecast for North American ports, while 7.9% increase for ports in Western Europe.

Throughputs of Eastern European, South-west Asian, African, Middle East and Oceanian ports were estimated to grow by 21.4 %, 12.4%, 12%, 10.7% and 10.4%.