Why Safe Bulkers Stock Dropped Today

Price moves on the stock market don't always make sense, and I think what happened today to shares of dry bulk shipping company Safe Bulkers (NYSE: SB) is a perfect example of this. For weeks, I've been telling you of a disturbing trend on the Baltic Dry Index (BDI), where prices for the transport of bulk cargo (grains, iron ore, coal, and the like) had taken a turn for the worse, plummeting 26% from their early May highs. If this kept up, I warned, it would be bad news for companies like Castor Maritime or Safe Bulkers, whose fortunes are tied to the prices they can charge for their services -- prices reflected on the BDI.