Shares of drybulk shippers fell Monday as a key shipping index slipped, following a week of flat to slightly weaker spot vessel charter rates.
The Baltic Dry Index, which is managed by the Baltic Exchange in London, fell 70 points Monday to close at 9,848. The index measures drybulk shipping rates on 40 shipping routes on a time charter and voyage basis. Its all-time high of 11,039 was set on Nov. 13.
Cantor Fitzgerald analyst Natasha Boyden noted rates for Capesize vessels -- the largest drybulk carriers -- remained unchanged last week during a period of little activity. Rates for Panamax vessels -- the largest ships that can fit through the Panama Canal -- weakened slightly last week, she said
Boyden also said that while rates for a variety of drybulk vessels have remained stagnant to slightly negative, the long-term outlook for the sector still remains very strong.
Dahlman Rose analyst Omar Notka agreed.
"Rates remain supported at strong levels as we continue to see demand for long term contracts at attractive rates," he said.
He noted that the average rates for Capesize vessels remain just 11 percent lower than all-time highs set in mid-November.
Also Monday, DryShips Inc. said it agreed to purchase a 30.4 percent stake in offshore drilling contractor Ocean Rig ASA for about $405 million.
In midday trading, shares of DryShips fell $9.27, or 11 percent, to $75. Over the past year, the shares have ranged from $15.75 to $131.34.
Diana Shipping Inc. lost $1.85, or 6 percent, to $29.11, while Excel Maritime Carriers Ltd. sank $4.82, or 10 percent, to $43.38.
Quintana Maritime Ltd. retreated 67 cents, or 2.6 percent, to $25.26, and Navios Maritime Holdings Inc. fell 38 cents, or 3 percent, to $12.41.
Euroseas Ltd. lost 52 cents, or 4.1 percent, to $12.14, while Genco Shipping & Trading slipped $6.06, or 9.9 percent, to $55.15.
Eagle Bulk Shipping Inc. fell 60 cents, or 2.3 percent, to $25.81.
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