GNK - Why Dry Bulk Shipping Stocks Keep Falling
Since topping out at 3,369 two weeks ago, the Baltic Exchange Dry Index (BDI) -- which tracks the prices that ocean transporters can get for carrying cargoes of coal, iron, grain, and other dry bulk commodities -- has tumbled 25% in just 16 days. As of today, the index sits at just 2,514.
Shares of companies engaged in the shipping of such dry bulk cargoes are following the index lower. As of 10:05 a.m. ET Wednesday, Star Bulk Carriers (NASDAQ: SBLK) has lost 9% of its value, Genco Shipping & Trading Limited (NYSE: GNK) is down 10%, and Eagle Bulk Shipping (NASDAQ: EGLE) is leading the industry lower with a 10.9% loss.
Now, the good news is that this cyclical market for dry bulk shipping has been characterized by both higher highs and higher lows as it has cycled higher over the past several months, so today's declines may not be as bad as they seem. On the other hand, though, as Hellenic Shipping News reports today, risks to demand for dry bulk cargoes are rising -- and they could be long lasting.
For further details see:
Why Dry Bulk Shipping Stocks Keep Falling