Freight Rates Slump

The recent sharp drop in freight rates continued yesterday with the Baltic Dry Index falling to close at 3020 points. That's a 28% slump since as recently as May 26th.

A slowdown in Chinese iron ore demand is being blamed for the weakness. A three day public holiday in China this week has kept interest to a minimum, brokers report.

A reduction in Chinese demand for coal and soybeans is also behind a fall in rates from the US Gulf, they added.

The 2010 low for the BDI was 2566 set in February.