The Baltic Exchange's dry bulk sea freight index fell to a one-week low on Wednesday due to weaker rates for Capesize and Panamax vessel segments.
The main index was down 78 points, or four per cent, at 1,874, lowest level since June 11.
The Capesize index lost 218 points, or about six per cent, to 3,442, its lowest level in a week. Average daily earnings for Capesize vessels decreased by $1,811 to $28,546.
Iron ore futures fell on Wednesday and were on track for a fifth session of declines, pressured by slowing demand for the steelmaking material in top consumer China.
The Panamax index fell 28 points, or about two per cent, to 1,378, snapping a 10-session winning streak. Average daily earnings for Panamax vessels lost $247 to $12,405.
Among smaller vessels, the supramax index gained four points to 949, an over two-week high.
Elsewhere, marine war risk rates for ships transiting Israeli waters have spiked to around 0.7 per cent following the escalation of tensions with Iran on Friday, three senior marine market sources told The Insurer.
(Reporting by Anushree Mukherjee in Bengaluru)