Shipping lines are still posting billion-dollar quarters despite a precipitous plunge in spot rates, courtesy of high-priced annual contracts signed by cargo shippers at the peak of the boom.

But the reprieve is only temporary. Record rates on existing annual deals are being renegotiated lower mid-contract. Many shippers are not delivering previously agreed-upon contract volumes. And the next round of annual contract negotiations is looming, promising a big step down in rates and volumes for 2023.