Mumbai, Dec. 30 :    Mumbai, Dec. 30:  With world-wide freight rates coming under continuous pressure, domestic shipping companies are entering into time-charter agreements, which they are optimistic will act as a buffer against the bearish markets. Such agreements entail shipping companies to charter various products based on a fixed rate for a period of time. 'It is much better to have such arrangements rather than depend on the spot market where prices continue to remain depressed,' said an official from Great Eastern Shipping Co. Ltd, which has taken recourse to such measures to beat the prevailing bearish trend in the industry. The official however, added that while such arrangements do not form a large part of its overall business, the company was examining further ways to face the tide of declining freight prices. Freight rates in the industry are plummeting following the poor economic environment globally, coupled with the aggressive expansion plans of various shipping companies, thus leading to a scenario of excess supply. Sources said that the trend of declining prices has been witnessed across the board that includes dry bulk carriers, container cargo and even tanker rates. For instance, in the case of very large crude carriers (VLCC), charter rates are down by one-third from the peak rates they achieved in the previous year. The downturn came as a huge shock to the industry that estimated the upswing in the previous year to continue till 2003. Rates here have now plummeted from about $ 70,000 in the peak times to below $ 20,000. The decline is more pronounced in the case of the container segment where rates have nose-dived to over $ 500 against $ 1,300 earlier. Further, the industry was also hit by the September 11 terrorist attacks on the US that saw insurance rates going northwards. Sources said that costs have now risen as companies have to pay additional insurance premia for entry into the West Asian and Gulf regions. Following the attacks, around 19 areas were then identified where additional premium has been levied on entry. These include Sri Lanka, Suez Canal, West Asia passes among others. Industry circles further point out that in the face of declining tanker rates, shipping companies have been targeting the domestic refineries who have given them 'cargo preference' over others as far as transportation of crude oil is concerned. 'However, in this case too, the companies do face pricing pressures,' said S Ragnekar, director, Shipping Corporation of India Ltd. SCI, he added, is now in the process of expanding its fleet further through the induction of four Aframaxes (crude carriers). The company has entered into consortia arrangements by pooling resources with other shipping companies for various regions.