Euphoria. That was the feeling many felt when stocks reached all-time highs in mid-September. Now, there is only a slight relief after the steep decline at the beginning of this week that saw stocks across all-sectors drop after the Evergrande crisis.
Here are the dry bulk shipping stocks that suffered the worst from Monday’s drop:
- Golden Ocean (NYSE: GOGL) -17%
- Eagle Bulk (NYSE: EGLE) -14%
- Genco (NYSE: GNK) -14%
- EuroDry (NASDAQ: EDRY) -14%
- Safe Bulkers (NYSE: SB) -13%
- Star Bulk (NYSE: SBLK) -12%
- Pangaea Logistics (NASDAQ: PANL) -12%
- Grindrod Shipping (NASDAQ: GRIN) -12%
The drop comes amid economic uncertainty and slowdown in China, where dry bulk and tanker shipping have high demand. If China’s consumption of raw materials is slowing down amid decades of growth, dry bulk shipping, which reached a 52-week high, will be massively impacted. On the other hand, with tanker stocks in their worst depression over the past 30 years, the depression will only extend further and shareholders would experience more red ahead.
Tanker shipping stocks extended their decline on Monday’s drop:
- Pyxis Tankers (NASDAQ: PXS) -10%,
- Top Ships (NASDAQ: TOPS) -9%
- Scorpio Tankers (NYSE: STNG) -8%,
- Nordic American Tankers (NYSE: NAT) -7%
- Frontline (NYSE: FRO) -7%,
- Teekay Tankers (NYSE: TNK) -5%
- International Seaways (NYSE: INSW) -4%
- DHT (NYSE: DHT) -4%.
Fortunately, container stocks’ success in the market helped protect itself from the steep declines experienced by dry bulk and tanker shipping stocks. China still remains the number one producer and exporter of containers, which only saw more growth as congestion in ports around the world increased.
While container stocks were impacted by Monday’s sell-off, they are still better off:
- Zim (NYSE: ZIM) -9%
- Matson (NYSE: MATX) -4%
- Euroseas (NASDAQ: ESEA) -8%
- Global Ship Lease (NYSE: GSL) -7%
- Danaos (NYSE: DAC) -6%
- Costamare (NYSE: CMRE) -6%
- Capital Product Partners (NYSE: CPLP) -6%