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SINGAPORE, SEPT.7: FREIGHT rates for dry bulk carriers could tumble to historic lows next year when new ships flood the market and iron ore demand in china weakens, a top shipping company official projected.

The Baltic index, which gauges the cost of shipping for dry commodities, including iron ore, cement, grain coal and fertiliser, has already fallen around 10 per cent so far this year.

It traded at 2.713 points on August 31, up by 0.04 per cent or one point.

He said that one of the biggest concerns for the industry was the weakening demand from china.

The chinese government imposed measures to slow down its overheated property market, which threatens to slash demand for iron ore.