Crude-oil transport rates between Asia and the Middle East fell again on Thursday, sinking to W46.25, Reuters reports.

Cargo rates fell from W49.50 the previous week, a drop of 7%.

Rates for older, less efficient vessels were even lower on Thursday. Their rates hovered between W38 and W39, indicating a continued downward projection in the freight market.

According to market insiders, the drop in prices is due to increased competition, reports Hellenic Shipping News. More very large crude carriers (VLCCs) are pursuing a stagnant cargo market, driving freight prices down.

“On Thursday, rates were W46.25 – that is near the bottom on last year,” noted a supertanker broker in Singapore. “We’re about to smash that,” he projected.

Some warn that prices will continue to fall until market demand for crude oil picks up in September or October.