Fears of a debt default by Chinese property developer Evergrande are prompting a major sell-off of New York-listed shipping equities, hours after hurting those trading in Europe and Asia. A dozen New York-listed dry bulk shipping stocks fell more than 10% by early afternoon Monday on Wall Street. Shares of Golden Ocean Group, which trade on the Nasdaq stock exchange under the ticker symbol GOGL, plummeted 14.7% to $9.56 per share. The company owns 56 capesizes, 38 panamaxes and three ultramaxes. Those for Diana Shipping, which trade on the New York Stock Exchange under the ticker symbol DSX, slid 13.6% to $5.06 per share. It has four newcastlemaxes and 12 capesizes among its 36 ships.

The larger-asset owners’ stocks fell hardest because their ships carry the iron ore that China turns into construction steel, but even those traded by the owners of smaller ships took a big hit. Eagle Bulk Shipping’s shares, which trade on the Nasdaq stock exchange under the ticker symbol EGLE, slid 13.4% to $43.80. This New York-listed owner owns 27 supramaxes and 26 ultramaxes. Jefferies analyst Randy Giveans said the “rough morning” was almost entirely due to Evergrande’s financial troubles that include $89bn in debt. “These headlines often cause panic, especially in a market that is so tight like dry bulk,” he told TradeWinds. “As for the future, it really depends on the length and degree of the Evergrande fall-out. It could be a short-term event if the group gets financial assistance.” The Evergrande situation has caused tremors throughout dry bulk shipping because “China is the focus of all of shipping“, he said.

Noble Capital Markets analyst Poe Fratt said Evergrande’s debt scenario has certainly pulled down dry bulk shipping equities, but China’s lower steel output is also causing them to fall. The country’s monthly crude steel production has fallen 16.3% since May to 83.2m tonnes for August, according to the National Bureau of Statistics of China. Manufacturing of steel products has, meanwhile, dropped 10.3% to 109m tonnes. “It seems like the market has been looking for a reason to sell off and it is difficult to predict how much more profit-taking it will trigger, especially since quarter-end is approaching,” he told TradeWinds. “Overall, I believe that the dry bulk market is close to balanced and will recover when some of the uncertainty dissipates since the order book remains very supportive of a balanced market.”

The tanker and containership equities markets are also having an off day, with most of those stocks falling but not as severe as those in dry bulk shipping have. Stock held by Navios Maritime Acquisition, which trade on the New York Stock Exchange under the ticker symbol NNA, declined 8.7% to $3.34. The company owns 44 tankers.

Share of boxship owner Danaos Corp, which trade on the New York Stock Exchange under the ticker symbol DAC, slipped 6.6% to $75.91.