All but two shipping stocks lost value on Wednesday amid another rout of the broader market.
The plunge came amid continued investor fears that government responses to the coronavirus pandemic will fail to stem widespread deaths and an economic recession.
Shipping numbers were ugly across the board, as even the one sector that had shown recent strength on a bull market — tankers — turned deep red.
The Dow Jones Industrial Average fell 1,338 points, 6.3%, to 19,898, wiping out all the gains attained in the first 42 months of the Trump administration. Only a late rally staved off even bigger losses of almost 2,000 points.
Investors continue to be spooked that efforts by the US government on the medical and economic-stimulus fronts might not be sufficient amid gathering fears of a global recession. They also showed impatience with the pace of a monetary relief package being debated by the US Congress.
Shipping shares suffered across the board.
VLCC rates slipping
In the tanker group, where spot VLCC rates have come slightly off the boil at nearly $250,000 per day, Navios Maritime Acquisitions fell 28%, followed by International Seaways at 17%, Tsakos Energy Navigation at 16%, Frontline at 14% and Diamond S Shipping at 13%.
Two leading owners in clean products, Scorpio Tankers and Ardmore Shipping, lost 15% and 14% respectively.
On the dry side, Navios Maritime Partners had the worst result among major owners with an 18% fall, just a fraction worse than Eagle Bulk. Safe Bulkers lost nearly 12%, while Diana Shipping and Genco Shipping & Trading each lost 6%.
Containership owners Global Ship Lease (15%), Danaos Corp (11%) and Costamare (10%) all ran in the red.
In the gas sector, Golar LNG Partners fell 33%, GasLog Partners tumbled 27% and Dynagas LNG Partners slumped 15%, while LPG operator Navigator Gas Holdings stumbled 25%.
The battered cruise sector proved again that there is more value to lose, with Carnival off 27%, Norwegian Cruise Line falling 23% and Royal Caribbean down 19%.
