GlossaryEN1 min readUpdated: Jul 23, 2026
Overcapacity
Overcapacity describes a situation in logistics in which transport or production supply permanently exceeds actual demand.
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Source: https://www.verkehrsrundschau.de/nachrichten/containerschifffahrt-immer-mehr-kapazitaet-stillgelegt-1093527.html
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Logistics Concept
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Definition & Explanation
Overcapacity describes a situation in logistics in which transport or production supply permanently exceeds actual demand. In container shipping it arises when carriers bring more slot capacity into the market than there is cargo – for example after large newbuilding waves or when demand drops seasonally. The consequences are falling freight rates, lower vessel utilisation and capacity management measures such as blank sailings, slow steaming or idling ships. The pattern around Chinese New Year is typical: capacity is tight before the holidays, while after the production stop and during the delayed production ramp-up many vessels sail poorly utilised. For freight forwarders, overcapacity phases open up negotiating room on spot rates but increase the risk of short-notice schedule changes and cancelled sailings. Not to be confused with the peak season, the seasonal demand spike in which capacity is scarce and expensive.
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