Diana Shipping Inc. Secures Time Charter Contract for m/v New York with SwissMarine 2025
Diana Shipping Inc. (NYSE: DSX), a prominent global shipping company specializing in the ownership and bareboat chartering of dry bulk vessels, has announced a new time charter contract through a wholly-owned subsidiary. This contract involves SwissMarine Pte. Ltd., Singapore, and pertains to one of Diana Shipping’s Capesize dry bulk vessels, the m/v New York. The gross charter rate agreed upon for the initial trip of the charter period is set at US$6,300 per day. For the remaining duration of the time charter, the rate increases to US$17,600 per day, both subject to a 5.00% commission payable to third parties. The charter is expected to commence on January 12, 2025, with a minimum contract period ending January 15, 2026, and a maximum duration extending until March 30, 2026.
The m/v New York, a 177,773 deadweight tonnage (dwt) Capesize dry bulk vessel, was constructed in 2010. This particular vessel’s employment under the time charter contract is projected to generate approximately US$6.03 million in gross revenue during the minimum scheduled charter period. Such revenue contributions reinforce Diana Shipping’s strategic focus on maximizing fleet utilization and profitability through long-term contractual agreements with reputable counterparties.
Diana Shipping Inc. operates a robust and diverse fleet of dry bulk vessels tailored to meet global transportation needs. The Company’s fleet presently comprises 38 vessels, which include:
- 4 Newcastlemax vessels
- 8 Capesize vessels (including the m/v New York)
- 5 Post-Panamax vessels
- 6 Kamsarmax vessels
- 6 Panamax vessels
- 9 Ultramax vessels
The aggregate carrying capacity of Diana Shipping’s existing fleet stands at approximately 4.2 million dwt, with a weighted average age of 11.28 years. Notably, the Company is set to expand its fleet with the addition of two methanol dual-fuel new-building Kamsarmax dry bulk vessels. These environmentally conscious vessels are expected to be delivered in the second half of 2027 and the first half of 2028, respectively. The incorporation of these dual-fuel vessels signifies Diana Shipping’s commitment to adopting sustainable shipping practices and aligning its operations with evolving environmental regulations.
Strategic Implications of the New Charter Agreement
The time charter contract with SwissMarine Pte. Ltd. exemplifies Diana Shipping’s ability to secure competitive charter agreements despite fluctuating market conditions in the dry bulk shipping industry. The tiered charter rates—starting at a modest US$6,300 per day and increasing to US$17,600 per day—highlight the structured approach to accommodating market dynamics while ensuring revenue stability over an extended period.
For Diana Shipping, the m/v New York’s deployment under this contract is not just about immediate revenue generation but also about reinforcing its reputation as a reliable partner for global charterers. SwissMarine Pte. Ltd., a reputable name in the shipping industry, benefits from the consistent performance and operational excellence Diana Shipping’s fleet offers. Such partnerships enhance the Company’s competitive edge and establish a foundation for future collaborations.
Fleet Expansion and Environmental Initiatives
The upcoming addition of the methanol dual-fuel Kamsarmax vessels underscores Diana Shipping’s proactive stance on sustainability. Methanol, as an alternative marine fuel, presents significant environmental advantages, including reduced greenhouse gas emissions and compliance with International Maritime Organization (IMO) 2020 sulfur cap regulations. By investing in advanced fuel technologies, Diana Shipping is positioning itself to meet increasing global demand for eco-friendly shipping solutions.
These new vessels will complement the existing fleet’s capabilities and enhance its market appeal, particularly among environmentally conscious charterers and stakeholders. Additionally, they represent a forward-looking approach to regulatory compliance, ensuring the fleet remains competitive in an industry transitioning toward greener practices.
Current Market Dynamics and Challenges
The dry bulk shipping market has witnessed considerable volatility due to global economic fluctuations, geopolitical tensions, and supply chain disruptions. However, Diana Shipping’s diversified fleet composition and strategic chartering practices mitigate exposure to these uncertainties. The inclusion of vessels across various categories—from Newcastlemax to Ultramax—allows the Company to address a wide range of cargo needs, from iron ore and coal to grains and minor bulk commodities.
Moreover, long-term charter agreements, such as the recent contract with SwissMarine, provide predictable revenue streams that buffer against spot market volatility. Diana Shipping’s operational strategy is further bolstered by its focus on fleet modernization, as evidenced by the planned integration of dual-fuel vessels. This modernization aligns with the industry’s broader transition towards decarbonization and digitalization.
The anticipated US$6.03 million in gross revenue from the m/v New York’s minimum charter period will contribute to Diana Shipping’s overall financial stability. By capitalizing on favorable chartering opportunities, the Company has consistently demonstrated its ability to generate sustainable returns for shareholders. Additionally, the diversified fleet ensures a balanced risk profile, enabling Diana Shipping to adapt to varying demand patterns across regional and global markets.
In terms of operational performance, the Company’s fleet management practices emphasize efficiency, safety, and compliance with international maritime standards. These attributes not only enhance fleet reliability but also support Diana Shipping’s reputation as a preferred carrier in the dry bulk sector.
Conclusion
Diana Shipping Inc. remains a leader in the dry bulk shipping industry, leveraging its extensive fleet, strategic chartering agreements, and commitment to sustainability. The new time charter contract with SwissMarine Pte. Ltd. for the m/v New York exemplifies the Company’s ability to secure profitable partnerships while navigating complex market conditions. Furthermore, the planned acquisition of methanol dual-fuel vessels highlights Diana Shipping’s forward-thinking approach to fleet development and environmental stewardship.
As the global economy continues to recover and adapt to new challenges, Diana Shipping is well-positioned to capitalize on emerging opportunities. By combining operational excellence with a commitment to innovation and sustainability, the Company is poised to maintain its competitive edge and deliver long-term value to its stakeholders.