Shipping stocks on choppy waters

The going for shipping companies such as Shipping Corporation, Varun Shipping and GE Shipping is likely to be tough as the Baltic Dry Index (BDI) fell sharply. BDI – a broader measure of raw-materials shipping costs, fell for the fourth day, sliding one per cent to 1,110 points, amid a surplus of available ships to haul cargoes. Amidst slowdown, Shipping Corporation of India has decided against going in for any capital expenditure to acquire vessels this fiscal.