Diana Shipping Inc. Announces Time Charter Contract for m/v New York With SwissMarine

Rhea-AI Summary

Diana Shipping Inc. (NYSE: DSX) has secured a new time charter contract with SwissMarine Pte. for its Capesize vessel m/v New York. The contract features a split rate structure: US$6,300 per day for the first trip and US$17,600 per day for the remaining period, both minus a 5% third-party commission. The charter will run from January 12, 2025, until minimum January 15, 2026, with a possible extension to March 30, 2026.

The 177,773 dwt vessel, built in 2010, is expected to generate approximately US$6.03 million in gross revenue for the minimum scheduled period. Diana Shipping's current fleet comprises 38 dry bulk vessels with a combined capacity of 4.2 million dwt and an average age of 11.28 years. The company also has two methanol dual fuel Kamsarmax vessels on order for delivery in 2027-2028.

Positive

• Secured minimum US$6.03 million gross revenue from the New York vessel charter
• Higher rate of US$17,600 per day for majority of charter period
• Fleet expansion with two eco-friendly methanol dual fuel vessels on order

Negative

• Low initial charter rate of US$6,300 per day for first trip
• 5% commission reducing actual revenue
• Aging fleet with average age of 11.28 years

Insights

Shipping Industry Analyst

The new time charter contract for the m/v New York reveals interesting market dynamics in the Capesize sector. The dual-rate structure ($6,300 for the first trip and $17,600 thereafter) indicates SwissMarine's strategic positioning, likely capitalizing on current market softness while securing higher rates for the longer term. The $6.03M minimum gross revenue provides stable income visibility through early 2026.

The weighted average age of DSX's fleet at 11.28 years is relatively mature for the industry, though the upcoming addition of two methanol dual-fuel Kamsarmax vessels demonstrates a progressive shift toward more environmentally compliant tonnage. The 4.2M dwt fleet capacity positions Diana Shipping as a mid-sized player with a diversified vessel portfolio across six vessel classes, reducing exposure to segment-specific volatility.

In simpler terms: Think of this like signing a lease where you pay less for the first month but higher rent afterward. Diana Shipping has locked in a guaranteed income stream for at least a year, which helps stabilize their business in the often volatile shipping market. They're also planning ahead by ordering newer, cleaner ships while maintaining a good mix of different sized vessels - essentially not putting all their eggs in one basket.

Maritime Economics Expert

The contract structure reflects current market conditions in the Capesize sector. The initial $6,300 per day rate suggests a positioning voyage, while the subsequent $17,600 rate aligns with forward market expectations. The 5% commission is standard for the industry, maintaining competitive cost structures.

The minimum duration extending to January 2026 provides DSX with important medium-term revenue visibility during a period of potential market uncertainty. The vessel's specifications (177,773 dwt) and age (built 2010) make it a competitive asset in the Capesize segment, though it's approaching the age where increased maintenance costs typically begin to impact operating margins.

For the average investor: This deal shows Diana Shipping's ability to secure steady income even in challenging market conditions. The company is essentially trading a lower initial rate for longer-term stability - similar to accepting a slightly lower salary for a longer-term employment contract with good benefits. The fact that they've locked in this rate until early 2026 helps protect them against market downturns.

ATHENS, Greece, Jan. 10, 2025 (GLOBE NEWSWIRE) -- Diana Shipping Inc. (NYSE: DSX), (the “Company”), a global shipping company specializing in the ownership and bareboat charter-in of dry bulk vessels, today announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with SwissMarine Pte. Ltd., Singapore, for one of its Capesize dry bulk vessels, the m/v New York. The gross charter rate is US$6,300 per day for the first trip of the charter period and US$17,600 per day for the balance period of the time charter, in each case minus a 5.00% commission paid to third parties, for a period until minimum January 15, 2026 up to maximum March 30, 2026. The charter is expected to commence on January 12, 2025.

The “New York” is a 177,773 dwt Capesize dry bulk vessel built in 2010.

The employment of “New York” is anticipated to generate approximately US$6.03 million of gross revenue for the minimum scheduled period of the time charter.

Diana Shipping Inc.’s fleet currently consists of 38 dry bulk vessels: 4 Newcastlemax, 8 Capesize, 5 Post-Panamax, 6 Kamsarmax, 6 Panamax and 9 Ultramax. The Company also expects to take delivery of two methanol dual fuel new-building Kamsarmax dry bulk vessels by the second half of 2027 and the first half of 2028, respectively. As of today, the combined carrying capacity of the Company’s fleet, excluding the two vessels not yet delivered, is approximately 4.2 million dwt with a weighted average age of 11.28 years. A table describing the current Diana Shipping Inc. fleet can be found on the Company’s website, www.dianashippinginc.com. Information contained on the Company’s website does not constitute a part of this press release.

About the Company

Diana Shipping Inc. is a global provider of shipping transportation services through its ownership and bareboat charter-in of dry bulk vessels. The Company’s vessels are employed primarily on short to medium-term time charters and transport a range of dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes.

Cautionary Statement Regarding Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect,” “pending” and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, Company management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies that are difficult or impossible to predict and are beyond the Company’s control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for dry bulk shipping capacity, changes in the Company’s operating expenses, including bunker prices, drydocking and insurance costs, the market for the Company’s vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, including risks associated with the continuing conflict between Russia and Ukraine and related sanctions, potential disruption of shipping routes due to accidents or political events, including the escalation of the conflict in the Middle East, vessel breakdowns and instances of off-hires and other factors. Please see the Company’s filings with the U.S. Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

FAQ

What are the charter rates for DSX's m/v New York vessel with SwissMarine?

The charter rates are US$6,300 per day for the first trip and US$17,600 per day for the remaining period, minus a 5% commission.

How much revenue will DSX generate from the m/v New York charter contract?

The charter is expected to generate approximately US$6.03 million in gross revenue for the minimum scheduled period.

When does DSX's new charter contract for m/v New York begin and end?

The charter begins January 12, 2025, and runs until minimum January 15, 2026, with possible extension to March 30, 2026.

How many vessels are in Diana Shipping's current fleet as of January 2025?

Diana Shipping's fleet consists of 38 dry bulk vessels with a combined carrying capacity of 4.2 million dwt.

When will DSX receive its new methanol dual fuel vessels?

DSX expects to receive two methanol dual fuel Kamsarmax vessels by the second half of 2027 and the first half of 2028.