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I've just started a new game, found another empire about 5 years in and got the -costs buff for ships at year 8. In that case it's hard imbalanced and has hardly anything to do with "catching" up.
It's just abusable in this very early situation.
Also with the AI currently spaming (and not properly using) naval capacity I would either remove the factor or link it with fleetpower. I'm usualy Superior or Overwhelming in Fleetpower and Research if I reach the lategame, but still at best equal in Capacity.
Overall a great idea and I really felt the impact on my economy in the last playthrough when I got significantly ahead, cause the ship upkeep really slowed me down.