Sector Snap: Drybulk shippers hit year-lows

The Baltic Dry Index, which measures drybulk shipping rates on 40 routes across the world, fell 417 points Friday to close at 3,746--marking one of its biggest one-day declines. The index is managed by the Baltic Exchange in London.

Vessel activity is being dragged down by slowing global trade and the recent drop off in iron ore demand in China.

The biggest hit this week in the drybulk market has been the plunging price and number of time charter contracts. Dahlman Rose analyst Omar Notka noted that a 2009 futures contract for a Capesize vessel--the largest drybulk ship--has slumped 40 percent in the last week.

Also Friday, Credit Suisse analyst Gregory Lewis cut his price target on DryShips Inc. to $90 from $110, citing "highly volatile" drybulk rates.

In afternoon trading, DryShips fell $4.01, or 9.2 percent, to $39.47, after hitting a new year-low of $39.28 earlier in the session. The stock's previous low was $41.35.

Diana Shipping Inc. fell 97 cents, or 4.5 percent, to $20.62, after earlier hitting a new 52-week low of $19.81. The stock's previous low was $20.15.

Eagle Bulk Shipping Inc. sank $1.07, or 6.1 percent, to $16.51. Earlier, it hit $16.22--surpassing a previous low of $17.33.

Danaos Corp. pulled back 68 cents, or 4 percent, to $16.35, floating above its 52-week low of $16.24.