At least six shipping and shipbuilding companies have shed more than $1bn in market value in a single day as global stocks suffered a historic rout.
The plunges came as part of a global stock sell-off that saw the SonicShares Global Shipping ETF, a New York-listed exchange-traded fund made up of key global shipping stocks, shed 5% in a day to reach $31.26 in morning trading as it followed plummeting global markets.
The day’s slump was a continuation of what analysts have described as a stock market shift into safety securities like US Treasury bonds as economic jitters led investors to unwind previously bullish stock trades.
With the Tokyo Stock Exchange leading Monday’s downward spiral in its biggest plunge since Black Monday in 1987, Japanese giant K-Line was among the day’s biggest losers in the maritime sector, with the shares plunging 22% to reach ¥1,681 ($11.65) on Monday alone.
With some 714m shares outstanding, that translates to a single-day loss of ¥339bn in market capitalisation, which is equal to $2.38bn.
Rival Mitsui OSK Lines fared better in the day, with a 14.6% decline, but across its 362m shares outstanding that still equates to a one-day value decline of ¥249bn, or $1.75bn.
Rounding out Japan’s three major shipowners and operators, NYK Group saw its shares plummet 13%, which amounted to a ¥258bn slump in the combined value of its 461m outstanding shares. That translates to a $1.81bn market capitalisation loss.
The drop came despite the company increasing its dividend forecast to ¥260 from the previous bet of ¥140, in addition to plans to buy up ¥110bn in its own stock.
But even worse off was shipbuilder Mitsubishi Heavy Industries, whose 15% plunge represented ¥778bn, or $5.44bn.
South Korean shares were also punished on Monday.
| Company | Market capitalisation decline |
| Mitsubishi Heavy Industries | $5.44bn |
| K-Line | $2.38bn |
| NYK Group | $1.81bn |
| Mitsui OSK Lines | $1.75bn |
| HD Hyundai Heavy Industries | $1.49bn |
| HMM | $1.06bn |
Shipbuilding giant HD Hyundai Heavy Industries saw its share price sink by 11% — a plunge that erased KRW 2.04trn, or $1.49bn.
HMM, one of the country’s leading vessel operators, saw its shares drop 10.6% during the day. The decline cost it nearly KRW 1.45trn, or about $1.06bn.
In the US, the Dow Jones Marine Transportation Index dipped 3.5%, reaching $348.28 in mid-morning trading.
But microcap companies suffered the largest declines among shipping names.
Cruise giant Carnival Crop posted one of the largest market capitalisation declines, with the 4.4% dip in morning trading translating into $728m in lost value.
The plunges deepened what has been a summer sell-off in stocks, driven by economic jitters.
“Although last week’s stock market volatility was primarily due to recession fears in the US, China’s weakening economy has been weighing on shipping markets for months,” Clarksons Securities said on Monday.
