Story
Diana Shipping Shares Rise on New, Higher-Rate Charter Deal for Ultramax Vessel
Summary
Diana Shipping Inc. (NYSE:DSX) saw its shares climb after announcing a new time charter contract for one of its dry bulk vessels at a significantly higher daily rate, projecting approximately $6.95 million in revenue.
Shares of Diana Shipping Inc. (NYSE:DSX) rose 5.9% on Monday after the global shipping company announced it had secured a new time charter contract for its Ultramax dry bulk vessel, the m/v DSI Pegasus.
Agreement Details
Diana Shipping entered into the agreement with Fednav International Ltd. for a gross charter rate of $18,350 per day, less a 5.00% commission to third parties, according to the company's statement. This represents a substantial increase from the vessel's current contract with Cargill Ocean Transportation, which has a gross rate of $14,250 per day.
The new charter is set to begin on July 27, 2026, and will run until at least August 15, 2027, with a potential extension to October 15, 2027. The company anticipates the contract will generate approximately $6.95 million of gross revenue for the minimum scheduled period.
AdFleet and Market Context
The positive market reaction underscores investor optimism about stronger rates in the dry bulk shipping sector. A higher daily charter rate directly improves a vessel's profitability and the company's cash flow. The m/v DSI Pegasus is a 60,508 dwt Ultramax dry bulk vessel built in 2015.
Diana Shipping's current fleet consists of 36 dry bulk vessels with a combined carrying capacity of approximately 4.1 million dwt. The company also has two methanol dual-fuel Kamsarmax dry bulk vessels on order, with expected delivery in the second half of 2027 and the first half of 2028.
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