THE Baltic and International Maritime Council (BIMCO) is recommending laying up ships to stop a freight rate decline brought on by excessive tonnage afloat.

But BIMCO also said idling was not likely to happen, reported Newark's Journal of Commerce. "That could jeopardise peak-season earnings even if solid consumer confidence is restored and the high unemployment figures start to come down," said the statement from the Copenhagen-based association of owners, operators and agents worldwide.

Spot freight rates on the transpacific and Asia-Europe routes may not recover from their three-month slide until third quarter peak season demand kicks in, according to BIMCO.

"Low volumes have triggered fierce competition on main trading lanes including Shanghai-Europe," said BIMCO analyst Peter Sand. "Rate cuts are ongoing as liner companies struggle to fill their vessels."

Rates are down and have been sliding since July "with the exception of a small hiccough around the turn of the year, as liner companies tried to push for implementation of general rate increases in a weakening market," BIMCO said.

"The anticipated strong volume rebound following Chinese New Year did not materialise, and that resulted in continued descending rates on most trading lanes," it said.