Reuters reported that the Baltic Exchange's main sea freight index , which tracks rates to ship dry commodities, remained negative for the ninth straight session as trading stayed subdued and a West Australia to China benchmark weakened.

The index, which gauges the cost of shipping commodities such as iron ore, cement, grain, coal and fertilizer, fell 2 points or 0.15% to 1,328 points. The overall index has traded between 1,300 to 1,500 points this year, coming under pressure as ship oversupply outpaces demand.

An analyst said that "West Australia to China was down 2.6%. That specific benchmark route hurt the capsize index. As decline is slowing, the overall index is kind of bottoming here. But there is still less cargo hitting the water."

ICAP said that dry bulk vessel congestion at Australian, Brazilian, Indian and Chinese ports has risen to its highest since the beginning of the year and is now equivalent to over 10% of the entire bulk fleet.

The Baltic's capsize index fell 0.96%, with average earnings lower at USD 11,054. Capesizes haul 150,000 tonne cargoes such as iron ore and coal.

Broker Fearnleys said in a report that "The lack of direction in the market has continued this week but now showing signs of weakening."

ICAP said that "Although the week started with some fresh cargoes entering the Atlantic market, this has not yet been sufficient to halt last week's slide. Spot tonnage remains under pressure in the Pacific basin as the decline in rates persists."

Cantor Fitzgerald said in a report that coal demand in the Pacific has not been adequate to clear vessels out, and the ballasting of vessels from the Indian Ocean to the US Gulf searching for grain cargoes caused an oversupply of ships.

(Sourced from www.reuters.com)