BMI believes that the twin forces of overcapacity and declining volumes, on the back of slower economic growth in the main demand markets of the US and eurozone, will force rates down once more, and carriers will once again face the prospect of further losses. While rates plunged in 2011 due to overcapacity, we believe that the threat of a drop off in demand could see a 2009 downturn scenario play out. In Twin Forces Of Overcapacity And Declining Demand To Collide, Asia-Europe Trade Route Most Exposed we outline our view on how container rates will play out on the major trade routes of Asia-Europe and transpacific in 2012. The US, with its economy still in recovery mode, offers some respite for carriers, but the problem of overcapacity is likely to persist. Meanwhile, the recession-hit eurozone places downward pressure on rates on the Asia-Europe route, and with more mega vessels due online to further boost capacity in an already saturated market, we fear rates on this route could mirror levels last seen in 2009. In Liner Strategies Indicate Carriers Preparing For The Worst we highlight the strategies that we believe the container sector will implement to weather the projected downturn in the container shipping sector in 2012. We highlight that while economic forecasts and newbuild data aid in understanding the supply and demand outlook for the sector, the true measure of just how tough the operating environment is is to look at the strategies implemented by shipping lines and gauge them against the measures used by carriers in the previous downturn. In What Is Wan Hai Lines Doing Right? we investigate how the shipping line is managing to turn a profit, despite the adverse operating climate. The company's tactics support BMI's views on emerging trade routes (ETRs) over developed trade routes (DTRs) and how a company that fails to follow the pack could in fact be the one to watch. In the second part of our analysis BMI highlights two other major threats that the industry faces and must deal with now. In Asia-Europe Landbridge To Take Market Share But Not Usurp Shipping we assess the risk a rail link between Asia and Europe poses to one of box shipping's main routes. In this tough operating climate, shipping lines face more than enough competition from their peers and now potentially have the risk of losing market share to another freight mode. Finally, we investigate another threat to the sector in Container Shipping Must Meet The Green Challenge Now. We highlight the pressure being placed on the industry over carbon emissions and although the sector once again managed to avoid being targeted in the latest round of UN climate change talks, the EU is starting to investigate ways it can regulate the sector. BMI notes that the container shipping sector has already started to make progress, by investing in more fuel-efficient ships and investigating other fuel options. We assert that more needs to be done on an industry-wide basis, however, and that it is worth the shipping sector's while to start making investments now. The more shipping lines can accomplish in cutting emissions by themselves, the less impetus there will be for outside intervention.