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NEW DELHI JAN 19: Container lines will struggle to maintain recent freight rates gains after the Chinese Lunar New Year because the industry hasn’t done enough to reduce excess capacity analyst said.

Carriers have pushed through rate increase since mid-December in the approach to factory excess capacity remained.

“The liners have still not been taking out capacity at a rate needed to support further rate increase-or even ensure they can maintain rates post-Lunar New year.’

The idle fleet expanded from 3.6 percent to 3.9 percent at the beginning of the year falling far short of the 8 per cent level that she believes is needed to spur a rate recovery.”If anything we believes the recent realignment of the industry into new alliance will forestall rather than promote capacity withdrawals.”

Chinese New Year officially starts on Jan 23,but many factories are set to close early this week.Paul Tsui,chairman of the Hong Kong Association of freight Forwarding and Logistics,said weak demand could see closures also lat long than normal,perhaps into ‘early February” which could further highlight the mismatch between demand and supply in container markets rates such as in 2009 have prompted delays in the delivery of new capacity.However it is unlikely that lines will adopt the strategy this year.

“Carriers need to take deliver of the