LONDON (Dow Jones)–Dry bulk freight rates, already down 30% in value since the start of 2011, are likely to fall further over the coming months as slower demand triggered by economic concerns and vessel oversupply take their toll on shipping rates, Peter Sand, Chief Shipping Analyst at the Baltic and International Maritime Council said late Tuesday.

BIMCO expects a depressed freight market over the coming months, and as “summer has been slow, so freight rates are likely to bottom out now [with] only a little upside is visible for owners. As the global economy is still walking in the shadows of the financial crisis, demand growth remains on a short leash,” BIMCO’s Sand said.

On the supply side, BIMCO predicts that another 450 new build dry bulk vessels with an average size of 84,000 DWT (dead weight tons) will enter the fleet during the remaining part of the year, another factor keeping a lid on freight rates.

The active fleet has grown by 7.4% so far in 2011, caused by delivery of 52.5 million DWT.

The Capesize Time Charter Average is likely to stay around $12,000-16,000 per day while Panamax and Supramax rates are likely to remain in the $13,000-17,000 per day during the second-half on 2011, BIMCO forecasts.

-By Neena Rai, Dow Jones Newswires

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