Diana Shipping Secures Time Charter Agreement for m/v DSI Polaris with Cargill Ocean Transportation
Diana Shipping Inc. (NYSE: DSX), a global leader in the dry bulk shipping sector, announced today that it has entered into a new time charter contract for its Ultramax vessel m/v DSI Polaris with Cargill Ocean Transportation (Singapore) Pte. Ltd., a division of the commodities trading and logistics giant, Cargill. The agreement reflects Diana Shipping’s continued success in securing stable, long-term employment for its modern dry bulk fleet amid a volatile shipping market.
The m/v DSI Polaris, a 60,404 deadweight ton (dwt) Ultramax dry bulk vessel built in 2018, will be chartered at a gross rate of US$12,250 per day, less a 4.75% commission paid to third parties. The charter duration will span from a minimum period ending July 21, 2026, to a maximum period ending September 21, 2026, with the contract scheduled to commence on July 1, 2025. This agreement is expected to generate approximately US$4.66 million in gross revenue for the minimum scheduled period of the charter.
The new charter represents a strategic move by Diana Shipping to optimize utilization of its assets while ensuring predictable cash flow in the medium term. In today’s dynamic maritime sector—where freight rates can swing rapidly due to macroeconomic factors, geopolitical disruptions, and evolving trade patterns—locking in steady charter income contributes significantly to the company’s financial resilience and planning capabilities.
Cargill Partnership Strengthens Commercial Footprint
The agreement with Cargill Ocean Transportation, a respected global charterer and one of the world’s largest transporters of dry bulk commodities, marks another important collaboration between Diana Shipping and industry-leading counterparties. Cargill operates a fleet of over 600 chartered vessels and moves approximately 200 million metric tons of commodities by sea each year. Partnering with such an established global player not only brings revenue reliability to Diana but also underscores the competitiveness and attractiveness of its modern Ultramax tonnage.
By securing employment for the m/v DSI Polaris with Cargill, Diana Shipping is demonstrating the commercial appeal of its well-maintained, high-specification fleet in a competitive global shipping environment. This charter deal aligns with Diana’s strategy of selectively deploying vessels to reputable charterers, ensuring optimal vessel earnings while reducing counterparty risk.
Overview of the m/v DSI Polaris
The m/v DSI Polaris, delivered in 2018, is part of Diana Shipping’s Ultramax segment—a fleet category that has gained popularity in recent years due to its fuel efficiency, cargo flexibility, and suitability for a wide range of ports. Ultramax vessels, typically sized between 60,000 and 65,000 dwt, serve as versatile carriers for commodities such as grain, coal, fertilizers, and steel products. They are also equipped with onboard cranes, enabling them to operate in ports without shore-based loading and unloading infrastructure.
Since its acquisition, the DSI Polaris has contributed to the Company’s revenue stream through a series of time charters, and its current employment with Cargill further extends its operational productivity while reinforcing Diana Shipping’s long-term chartering strategy.
Fleet Development and Strategic Modernization
The chartering of the DSI Polaris comes as Diana Shipping continues to actively manage and modernize its dry bulk fleet. Following the planned sale of the m/v Selina, the Company’s fleet will comprise 36 dry bulk vessels, covering a broad spectrum of sizes and capabilities:
- 4 Newcastlemax vessels – typically among the largest dry bulk ships, primarily used for transporting iron ore and coal over long-haul routes.
- 8 Capesize vessels – serving major bulk trades, including iron ore and coal, especially on routes that require long ocean crossings.
- 4 Post-Panamax vessels – larger than traditional Panamax ships, used in bulk trades requiring slightly larger cargo capacity.
- 6 Kamsarmax vessels – a popular Panamax variant optimized for ports like Kamsar in Guinea.
- 5 Panamax vessels – versatile midsize bulkers, suitable for a wide range of routes including trans-Pacific and Atlantic trades.
- 9 Ultramax vessels – fuel-efficient, geared bulk carriers like the DSI Polaris, providing operational flexibility across regional and global markets.
In addition to optimizing its existing fleet, Diana Shipping is investing in sustainability and future compliance by ordering two methanol dual-fuel Kamsarmax newbuilds. These vessels are expected to be delivered in the second half of 2027 and the first half of 2028, respectively. The adoption of methanol as an alternative fuel source reflects Diana’s proactive approach to emissions reduction and compliance with the International Maritime Organization’s (IMO) decarbonization targets.
Once these vessels are delivered, they will position Diana Shipping at the forefront of environmentally sustainable bulk shipping—enhancing the Company’s competitiveness as customers increasingly prioritize decarbonized supply chains.