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News 296 views last update:6 Aug 2012

Shipping agreement Diana shipping/Cargill

Diana Shipping Inc., a global shipping transportation company specializing in dry bulk cargoes, has acquired a Capesize dry bulk carrier and has entered into a time charter contract with Cargill International.

Diana Shipping, with head office in Athens, Greece, has signed an agreement with an unaffiliated third party for the purchase of a Capesize dry bulk carrier of 180,235 dwt, built in 2005 by Imabari Shipbuilding Co., Ltd., for the price of $110 million.

The vessel, to be renamed Aliki, is expected to be delivered to Diana Shipping on or about April 30, 2007.

Diana has entered into a time charter contract with Cargill International S.A. for the Aliki for a minimum 46 to maximum 49 month period at an average rate of $48,500 per day with one year extension at the charterer's option at the same rate.

During the first two years of the charter the gross daily charter hire rate will be $52,000 and during the third and fourth years of the charter $45,000.

The charterer has the option to employ the vessel for a further 11-13 month period at a daily charter rate of $48,500. The time charter contract is expected to commence immediately after the delivery of the vessel to Diana.

Gross revenues
During the initial two years, this employment is expected to generate gross revenues of approximately $37 million and is expected to generate gross revenues of $32 million during the third and fourth years, amounting to a total of $69 million.

If the charterer exercises its option for the fifth year, the charter is expected to generate aggregate gross revenues of approximately $86 million over the entire period.

Diana Shipping Inc. is a global provider of shipping transportation services. The company specializes in transporting dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes.

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