The container ship industry is stuck in a sustained downward cycle.

This is according to a  new report by consultancy firm Drewry, which found the sector was not living up to expectations when it came to cargo flows. Similarly, spot freight rates have significantly declined, due to a sharp rise in the number of vessels of at least 8,000 teu.

The study claimed the tendency for most operators to concentrate solely on protecting their market share, plus the general imbalance between supply and demand is affecting the overall profitability of the industry.

Neil Dekker, head of container research and Drewry, commented: "Two major fights will continue for carriers this year - to win contract and spot business. The larger battle will be waged in the spot market arena."

The figures suggested 2014 is expected to witness a growth of four per cent in demand levels over the coming year. However, it warned the sector would not be able to fully recover from its current slump until 2016 at the earliest.