Diana Shipping Inc. (NYSE: DSX), a leading global shipping company with a focus on dry bulk vessels, announced that it has signed a new time charter contract with Bohai Shipping (HEBEI) Co., Ltd. for one of its Capesize dry bulk vessels, the m/v P. S. Palios. The deal is expected to provide stable revenue for the Company over the next 18 to 20 months, contributing to its ongoing success in the dry bulk shipping market.
Time Charter Contract Details
Under the terms of the new time charter contract, the m/v P. S. Palios will earn a gross rate of $27,150 per day, minus a 5% commission paid to third parties. The charter will run for a minimum period until November 1, 2025, with a maximum end date of December 31, 2025. The charter is scheduled to begin on May 12, 2024. The revenue from this contract is anticipated to total approximately $14.39 million for the minimum duration of the time charter, providing a consistent income stream for the Company.
Overview of Diana Shipping’s Fleet
Following the previously announced sale of the m/v Houston, Diana Shipping Inc.’s fleet will consist of 38 dry bulk vessels, including 4 Newcastlemax, 8 Capesize, 5 Post-Panamax, 6 Kamsarmax, 6 Panamax, and 9 Ultramax ships. The Company also has plans to take delivery of two methanol dual-fuel Kamsarmax dry bulk vessels by 2027 and 2028, which will further expand its fleet. With a total carrying capacity of approximately 4.4 million deadweight tons (dwt) and a weighted average age of 10.71 years, Diana Shipping’s diverse fleet is well-positioned to meet the demands of the dry bulk shipping industry.
Impact on Diana Shipping’s Business Strategy
This new time charter contract reflects Diana Shipping’s ongoing strategy to maintain a robust and diversified fleet while ensuring stable revenue through long-term charters. The Company’s focus on Capesize vessels, among others, aligns with the growing demand for bulk carriers capable of transporting large quantities of commodities. The contract with Bohai Shipping (HEBEI) Co., Ltd. further solidifies Diana Shipping’s market position and contributes to its long-term financial stability.
Overall, Diana Shipping’s strategic approach to fleet management and time charter contracts ensures a steady income while reducing risks associated with volatile shipping markets. The anticipated revenue from the m/v P. S. Palios contract is expected to support the Company’s ongoing operational and growth objectives.
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Source: DIANA SHIPPING INC.
