Diana Shipping Secures Charter Extension with Cobelfret
In a significant development for the maritime industry, Diana Shipping, a prominent Greek bulker owner listed on the New York Stock Exchange, has successfully negotiated an extension of a time charter contract. This contract involves one of its post-panamax vessels, the Amphitrite, and is with Belgium-based Cobelfret. The extension marks a strategic move for Diana Shipping as it continues to solidify its position in the dry bulk shipping market.
Details of the Charter Extension
Diana Shipping’s extension agreement for the Amphitrite, a 2012-built bulk carrier with a deadweight tonnage of 98,697, is set to take effect on December 31, 2024. This new arrangement will last for a minimum of one year, concluding on January 1, 2026, with the possibility of extending until March 15, 2026. The original charter began on November 10, 2022, and was previously extended in early January 2023.
The financial terms of the new charter are noteworthy. For the first 50 days of the charter period, the gross rate will be $8,750 per day. After that, the rate will increase to $12,100 per day for the remainder of the contract. It is important to note that these figures are subject to a 5% commission paid to third parties. Over the minimum scheduled period, Diana Shipping anticipates generating approximately $4.22 million in gross revenue from this contract.
However, this new day rate represents a decrease compared to the previous extension. In the earlier agreement, the rate was $12,250 per day for the first 30 days, followed by $15,000 per day for the remainder of the charter. This reduction reflects the current market conditions and the competitive landscape in the shipping industry.
Diana Shipping’s Fleet and Future Prospects
Diana Shipping boasts a diverse fleet of 38 dry bulk vessels, which includes various classes such as four Newcastlemaxes, eight Capesizes, five post-Panamaxes, six Kamsarmaxes, six Panamaxes, and nine Ultramaxes. This variety allows the company to cater to different segments of the dry bulk market, enhancing its operational flexibility and market reach.
Looking ahead, Diana Shipping has plans to expand its fleet further. The company is set to take delivery of two new methanol dual-fuel Kamsarmax dry bulk vessels by the second half of 2027 and the first half of 2028. This move aligns with the industry’s shift towards more sustainable and environmentally friendly shipping practices, as methanol is considered a cleaner alternative to traditional fuels.
Currently, the combined carrying capacity of Diana Shipping’s fleet, excluding the two vessels yet to be delivered, stands at approximately 4.2 million deadweight tons (dwt). The fleet’s weighted average age is 11.23 years, indicating a relatively young and efficient fleet compared to industry standards. As the company navigates the evolving maritime landscape, these strategic decisions position it well for future growth and profitability.
