BofA Securities reported that due to the normalization of inventories, the transfer of consumer demand and the early end of the peak season, global trade was weak in August and September this year, resulting in a larger-than-expected drop in spot freight rates for cargo ships. The bank's survey shows that the more room for spot freight to go down, the greater the pressure on contract freight.
However, the bank believes that dry bulk freight rates have begun to improve due to the seasonality of grain and coal and the intensification of typhoon blockages related to the mainland, which is expected to be supported by seasonal factors in the next month or two. In addition, BofA's tanker rates will be supported in the coming months, mainly due to stronger than normal inventory replenishment in winter, increased demand in Europe and reduced imports from Russia.