So well-documented is the notion that a huge number of newly built dry-bulk ships will be entering the market next year and beyond, leading to a potential glut, that market participants discounted this as a reason for the steep two-day drop in shipping stocks.
One of the leading dry-bulk decliners Wednesday was Genco Shipping & Trading (GNK - Get Report), whose shares lost 5.7% to $19.60. The company reported its third quarter after Wednesday's market close, saying it earned $1.10 a share, exceeding analysts' profit targets by 9 cents.
DryShips' (DRYS - Get Report) stock, meanwhile, also lost 5.7% during the session after retreating 7.6% on Tuesday. The company, the first Greek dry bulk concern to go public in 2005 and the first to report third-quarter results this earnings season on Monday, surpassed expectations and reported a "clean quarter," in the words of one shipping-stock investor. The stock finished Wednesday at $6.01.
Elsewhere, shares of Diana Shipping (DSX - Get Report) gave up 5.5%; Navios Maritime (NM - Get Report) lost 4.6%; Paragon (PRGN - Get Report) retreated nearly 6.7%; and Eagle Bulk (EGLE - Get Report) declined by 7%.The steepest drops were experienced by the smaller-cap names. Shares of FreeSeas (FREE - Get Report), an operator of smaller handymax and handysize vessels that transports a lot of grain, sank nearly 11% to $1.33. OceanFreight (OCNF) shares broke a buck, falling nearly 9% to 89 cents, while Star Bulk Carriers (SBLK - Get Report) lost 7.7% to $3.01 and Excel Maritime (EXM - Get Report), fell nearly 8% on the day. -- Written by Scott Eden in New York Follow TheStreet.com on Twitter and become a fan on Facebook. NEW YORK ( TheStreet) -- Advertising giant Interpublic could only talk psychology when gazing into the near-term future.