Diana Shipping locks in Florida charter at $30,500 per day

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Diana Shipping Inc. has secured a new time charter with Nippon Yusen Kabushiki Kaisha for the Capesize dry bulk carrier Florida, lifting the vessel’s gross daily rate by $4,600 compared with its current employment.

The 2022 built vessel will earn $30,500 per day under the new contract, less a 5% commission paid to third parties. The charter will run for at least 32 months and up to 35.5 months, with commencement expected during the second quarter of 2027.

Diana Shipping expects the minimum scheduled charter period to generate approximately $29.28 million in gross revenue.

The agreement places the 182,063 deadweight tonne Florida with one of Japan’s largest shipping groups for almost three years. At the minimum duration, the contract covers about 974 days of employment.

The vessel is currently chartered to Bunge S.A. of Geneva at a gross rate of $25,900 per day, also subject to a 5% third party commission. The new NYK rate represents an increase of about 17.8% from the existing charter.

For dry bulk owners, a longer charter can work much like fixing an interest rate. It provides predictable income and reduces exposure to short term market swings, although it can also limit participation if spot rates move substantially higher.

The delayed start means the charter does not immediately affect Diana Shipping’s current revenue. It instead establishes follow on employment for the vessel from the second quarter of next year.

Capesize vessels are primarily deployed on long distance routes carrying high volume commodities such as iron ore and coal. Their size prevents them from using the Panama Canal, leaving them dependent on routes around the Cape of Good Hope or through the Suez Canal where operationally suitable.

The Florida is among the younger ships in Diana Shipping’s fleet. The company currently operates 36 dry bulk vessels, comprising four Newcastlemax vessels, eight Capesize vessels, four Post Panamax vessels, six Kamsarmax vessels, five Panamax vessels and nine Ultramax vessels.

Together, those ships provide approximately 4.1 million deadweight tonnes of carrying capacity. The fleet has a weighted average age of 12.7 years.

Diana Shipping is also preparing to add two methanol dual fuel Kamsarmax newbuildings. Delivery of the first vessel is expected during the second half of 2027, followed by the second during the first half of 2028.

Those vessels are not included in the company’s current fleet capacity. Their addition will expand Diana Shipping’s exposure to the Kamsarmax segment while introducing dual fuel technology into a fleet that transports iron ore, coal, grain and other dry bulk commodities on worldwide routes.

Diana Shipping primarily employs its vessels through short and medium term time charters. The NYK agreement gives the Florida firm employment into at least early 2030 if the charter begins as expected and runs for its minimum scheduled period.