Diana Shipping lifts Leto charter rate 41% in Cargill extension

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Diana Shipping Inc. has secured a 41% increase in the daily charter rate for its Panamax bulk carrier Leto, extending the vessel’s employment with Cargill International SA into at least September 2027.

The Athens based shipowner said Cargill will pay a gross rate of $18,000 per day, less a 4.75% commission to third parties. The new charter is expected to begin on September 10, 2026.

Leto is currently earning $12,750 per day under its existing charter with Cargill, subject to the same commission. The increase therefore adds $5,250 to the vessel’s gross daily income, equivalent to a rise of approximately 41.2%.

The contract will run until at least September 1, 2027 and could continue until October 31, 2027, depending on the agreed redelivery window.

Diana Shipping expects the minimum scheduled period to generate approximately $6.34 million in gross revenue. After deducting the 4.75% commission, the charter would contribute about $6.04 million before operating expenses, financing costs, depreciation and any periods when the vessel is unavailable.

The contract gives the owner revenue visibility for nearly another year while maintaining exposure to a potentially longer employment period through the maximum redelivery date.

For vessel owners, a time charter acts much like a fixed rental agreement. The owner provides the ship and remains responsible for its operation, while the charterer pays a daily rate and directs its commercial employment within the terms of the contract. Locking in a higher rate protects the owner from an immediate market downturn, although it can limit potential gains if spot earnings rise sharply.

Cargill, one of the world’s largest agricultural commodity traders, is a regular charterer of dry bulk tonnage. Panamax and Kamsarmax vessels are widely used to transport grain, coal and other bulk commodities on routes connecting the Americas, Europe and Asia.

The $18,000 daily rate is also close to recent Panamax market earnings. Baltic Exchange data showed average Panamax earnings approaching $20,000 per day in early August, as stronger demand supported the wider dry bulk market.

The Baltic Dry Index reached 2,926 points on August 25, up more than 8% over the preceding month and approximately 43% from the same period a year earlier. The index combines assessments for Capesize, Panamax and Supramax vessels and is used as a broad measure of dry bulk freight conditions.

Leto’s new rate sits below some recent spot market assessments, but the comparison is not exact. Spot voyages can deliver higher returns during strong markets, while longer time charters offer more predictable cash flow and reduce exposure to short term freight volatility.

The vessel was built by Universal Shipbuilding Corporation in Japan in February 2010. It has a deadweight capacity of 81,297 tonnes, seven cargo holds and a grain capacity of approximately 96,030 cubic metres. The Marshall Islands flagged ship is classed by the American Bureau of Shipping.

Diana Shipping currently controls 36 dry bulk vessels with a combined carrying capacity of approximately 4.1 million dwt. The fleet comprises four Newcastlemax vessels, eight Capesize ships, four Post Panamax vessels, six Kamsarmaxes, five Panamaxes and nine Ultramaxes.

The fleet has a weighted average age of 12.75 years. Leto, delivered in 2010, is therefore older than the company average but remains employed with a major commodity charterer under a contract extending into its eighteenth operating year.

The company is also preparing to add two methanol dual fuel Kamsarmax newbuildings. The vessels are scheduled for delivery in the second half of 2027 and the first half of 2028, respectively. Those ships are excluded from the current fleet capacity figure.

Diana Shipping primarily employs its vessels under short and medium term time charters, transporting iron ore, coal, grain and other dry bulk commodities across international trade routes.