Shippers Suffer on China Concerns, Industry News (DHT) (DRYS) (NM) (FRO)

Not a good day to be a shipper.

After the market closed Monday, DHT Holdings (NYSE: DHT) approved a backstopped equity offering and a concurrent private placement, both of which will allow DHT to raise equity capital through the sale of shares of common stock and preferred stock. DHT shares are getting hit, down about 30 percent early.

Additionally, Wells Fargo cut Frontline (NYSE: FRO) to Underperform, saying "the recent short squeeze (FRO is up 69 percent over the past 10 trading days, vs. S&P 500, up 5 percent) has taken valuation well beyond a sustainable level." For more color from Wells, click here.

Chinese officials earlier said the nation was raising fuel prices for the second time in six weeks and BHP Billiton (NYSE: BHP) says steelmaking in China is slowing. Both are catalysts for some global economic slowdown...leading to less need for shipping of goods.

Frontline peer DryShips' (Nasdaq: DRYS) shares are off over 1.5 percent Tuesday morning amid slight gains in the Baltic Dry Index on Monday. Others seeing negative action include:

• Eagle Bulk Shipping (Nasdaq: EGLE);
  
• Excel Maritime (NYSE: EXM);
  
• Genco Shipping (NYSE: GNK); and
  
• Navios Maritime (NYSE: NM).

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