Fall in Bulk Freight Rates

The state owned shipping line of India is suffering from drastically falling freight rates for dry bulk carriers and tankers.  These are the ships which are used to carry raw materials, especially those for the building trade.  India supplies iron ore to China, which is currently reducing its construction programmes, and therefore imports less iron ore.  Freight rates are falling because there is an excess of ships, which drives down the prices for carrying raw materials.  Shipowners are hoping that demand for building materials will increase so that freight rates can be raised.