The Baltic Exchange's main sea freight index fell for a third consecutive session on Wednesday due to weaker Capesize rates.
The main index slipped 37 points, or 1.9 per cent, to 1,927 points, reaching its lowest level since August 5.
The Capesize index was down 156 points, or 5.2 per cent, at 2,867 points.
Average daily earnings for Capesize vessels dropped by $1,294 to $23,778.
"It seems like the market is currently moving sideways. We saw some reduction in mining activity from Australia. There is a likelihood of impact on Australian mining activity from the Pacific while Atlantic is showing some signs of resilience," said Nikos Tagoulis, research analyst at Intermodal.
Australia is one of the largest exporters of iron ore in the world and uses Capesize vessels to transport dry bulk freight through the Pacific shipping route.
"We expect that in the next few months heavy rainfalls and extreme dry weather will impact prices," Tagoulis added.
Iron ore futures prices declined, pressured by a mandated production cut ahead of a military parade in China and US trade restrictions on steel imports.
On Tuesday, the US Commerce Department said it was hiking steel and aluminum tariffs on more than 400 products including wind turbines, mobile cranes, appliances, bulldozers and other heavy equipment, along with railcars, motorcycles, marine engines, furniture and hundreds of other products
Meanwhile, the Panamax index was up 28 points, or 1.7 per cent, at 1,665. Average daily earnings for Panamax vessels gained $248 to $14,985.
Among smaller vessels, the supramax index added 19 points, or 1.4 per cent, to 1,388.
(Reporting by Sarah Qureshi in Bengaluru; Editing by Krishna Chandra Eluri)