The brokerage cut Eagle Bulk , Excel Maritime , and Freeseas to "hold" from "buy", and cut price targets on Baltic Trading and Diana Shipping.
"Based on our supply/demand forecast, it appears the dry bulk market will not see a major improvement until the 2014/2015 time frame," analyst Omar Nokta said in a note to clients.
The analyst said Baltic Dry Index has declined significantly in recent months, hurt by the change in the pricing structure of iron ore and coal, and a very heavy delivery schedule.
Flooding in Queensland and weather-related problems in Colombia, South Africa, Russia and Indonesia have all disrupted coal shipments at a time when the dry bulk market is already finding it tough to absorb growing vessel deliveries ordered before the economic turmoil in 2008. (Reuters)
