Shares slump

Bulk owners led shipping shares in a broad decline as New York stock markets slumped Monday.

At market close, DryShips' stock price had plunged by 15.5% to $4.95 after the company revealed that auditors included a "going concern" statement in its annual report.

The inability of DryShips to meet financial covenants “raised substantial doubts about its ability to continue as a going concern," the statement read, although DryShips chief executive George Economou said the bulker owner has been "repositioned for the long-term."

Nasdaq-listed bulker owner FreeSeas logged the largest fall after a Credit Suisse analyst downgraded the company's shares from "outperform" to "neutral." FreeSeas shares shed 19.6% to $1.19.

Oppenheimer analyst Scott Burk also cut his 2009 estimates for the company from $0.65 per share to $0.56 Monday, after the owner reported lower-than-expected fourth-quarter earnings last week and suspended its dividend.

Excel Maritime Carriers saw its shares drop by 16.2% to $4.45.

Overall, all but a few vessel owning stocks were in negative territory Monday afternoon as New York markets slid under the weight of falling auto and banking stocks. The Dow Jones Industrial Average dropped by 254 points, or 3.3%.

Shares in boxship owner Seaspan Corp, bulker and tanker owner OceanFreight, dry-bulk player TBS International and offshore vessel owner Trico Marine services all lost more than 14% of their market value Monday.