South Korea's Korea Line Corp said it had filed for receivership, squeezed by a sharp drop in dry-bulk rates and growing global vessel deliveries ordered before the economic turmoil of 2008.

Korea Line, which is 20.5 percent owned by its chief executive, Lee Jin-bang, and 5.7 percent by Daewoo Shipbuilding and Marine Engineering, is a major dry bulk carrier, shipping coal, iron ore, steel, liquefied natural gas to such clients as POSCO , KEPCO and KOGAS.

The Baltic Exchange's main sea freight index, which gauges the cost of shipping commodities such as iron ore, grain and fertiliser, fell to its lowest level since early 2009 this week, as the market struggled with oversupply, although record steel production is lifting the outlook.

The plunging rates hit the company, since it relies heavily on chartered ships. Borrowed vessels accounts for more than 70 percent of its shipping fleet. (Reuters)