A slump in dry bulk shipping sector - taken as a barometer for world trade - is expected to worsen as the meltdown in global commodities continues as overcapacity afflicts the market.

Slower coal and iron ore demand from China - the world's biggest industrial importer - has battered the dry bulk sector, already in the midst of its worst ever downturns that is expected to extend well into next year, Reuters reports.

This week the Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities plunged to an all-time low.

A slump in oil and other commodity prices, due to slowing Chinese demand, has widely been seen as one of the reasons for US Federal Reserve hesitancy in tightening policy, said Reuters.