Two sector leaders experienced a poor start to the trading week despite the shipping industry seeing an improvement over the last 12 months.
Diana Shipping, a dry bulk shipping service provider, and DryShips, a cargo vessel owner, saw their shares drop considerably during Monday trading with DryShips hitting a brand new 52-week low.
Shares of DryShips closed down at 15.48% and stock sank as much as 18% when it hit a new low of $1.27.
Diana Shipping saw shares close down at 0.93%.
DryShips announced earlier this month that it had entered into agreements with unaffiliated third parties to acquire three carriers built in 2014, with delivery expected for the second quarter of 2017.
Esben Poulsson, Singapore Shipping Association (SSA) President, highlighted the large market fluctuations for both companies after recently suggesting at Singapore Maritime Week that shipping was better positioned for growth than it was a year ago, especially the dry bulk and container segments.
He said that the collapse of Hanjin Shipping had led to more “discipline in terms of the supply side” but that more needed to be done to consolidate the market.