How Long Will The Destruction Of Dry Bulk Stocks Continue?

Black Wednesday

Wednesday was a day that many shareholders of dry cargo shipping companies will like to forget. There was a broad sell-off in the segment and two hardest hit companies were Scorpio Bulkers and

Star bulk as they saw their share prices dropping in excess of 20%.

Scorpio Bulkers Cargo Ship

The sell-off may have been triggered by Star Bulk’s below than expected results. Everyone is asking: was black Wednesday a one off or dry bulk stocks carnage

will continue.

Star Bulk Largest Bulk Carrier

Sea Cargo Cargo to Caribbean

The Factors

Cargo Ship Factors

Pappas was asked if the dry bulk market is in a structural decline he accepted that “I think we definitely have a structural problem in two ways, first of all, there’s no question that there is a

slowdown in China and that steel production will be much lower — the growth of the steel production will be much lower if not remaining around the same from where it is. So that’s the one

structural issue.

Huge Loans Need to Be Repaid

The sharp decline in share prices also caught the experts at Wall Street by surprise. Equity analysts mostly used net asset value to

determine a company’s intrinsic value.

Cargo Ship Huge Loans Need Repaid

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