SIMIC

However, HSBC's head of shipping Parash Jain doesn't believe the sector will return to losses, which have characterised it over the last two decades pre-Covid crisis.

"There are signs that spot rates could fall to pre-pandemic levels swiftly on the widening demand-supply gap, but we maintain that contract rates should settle above their pre-pandemic levels and that capacity discipline will keep spot rates from lingering at trough levels," said Mr Jain.

Mr Jain declared profits are set to fall from their peak estimated for 2022, but would be better in the past.

The largest public-listed container line AP Moller-Maersk has forecast EBITDA of US$37 billion for 2022.

The deep slide in rates from current levels will be driven between container growth and the supply of new vessels.

HSBC (Hongkong Shanghai Banking Corporation) projects global container trade will decline two per cent in 2022 and three per cent in 2023 before recovering by 2.5 per cent in 2024.

In contrast, vessel capacity will increase 6.2 per cent in 2022, 6.5 per cent in 2023, and eight per cent in 2024.