UPDATE 1-Nordic American Tanker posts Q3 loss; cuts dividend

* Q3 loss $0.28 per share

* Dividend cut to $0.10/shr

* Weak spot tanker markets hurt results

Nov 9 (Reuters) - Nordic American Tanker Shipping Ltd (NAT.N) posted a quarterly loss and slashed its quarterly dividend by 80 percent, as weakness in the spot freight market for oil tankers continue to be a challenge.

The company lowered its third-quarter dividend to 10 cents a share from 50 cents a share in the second quarter.

However, the company said there were signs of a positive development in the freight market for the fourth quarter.

The average daily rate for the company's spot vessels was $14,075 per day net during the third quarter, compared with $26,300 per day for the second quarter.

Thirteen of the company's 14 vessels operate on the spot market.

Nordic's net loss for the third quarter was $11.8 million, or 28 cents a share. Loss from ongoing operations was 26 cents per share.

Shares of the company closed at $28.67 Friday on the New York Stock Exchange. (Reporting by Supantha Mukherjee in Bangalore; Editing by Ratul Ray Chaudhuri)