The bank said it expected earnings to "strongly surprise" - and not in a good way.
"While volume is likely to move up in the next few months on peak season, the accelerating deliveries of mega-vessels suggests that rates may fail to perform accordingly," it added.
"We expect the industry to ink deep losses again in 2014 and 2015."
It has slashed its target prices for the sector by an average of close to 20%.
China
