Diana Shipping has signed a two-year charter contract with Japan’s NYK Group that locks in higher earnings for one of its capesize bulkers.
It said the 179,500-dwt GP Zafirakis (built 2014) will earn a gross charter rate of $26,800 per day, minus a 5% commission paid to third parties, for a period of between 23 and 26 months.
The contract will generate about $18.5m of gross revenue for the minimum scheduled period.
The charter is expected to begin on 9 September.
The vessel was earlier chartered to Solebay Shipping at a gross charter rate of $17,000 per day.
The new charter rate for the GP Zafirakis is slightly lower than Diana’s last period deal for a ship of this size.
In April, the New York-listed shipowner locked in earnings of nearly $27,200 per day, minus a 5% commission, with a one-year charter of its 179,100-dwt PS Palios (built 2013) to Bohai Shipping.
But the latest capesize deal is somewhat higher than prevailing spot rates, which are staging a rebound. The Baltic Exchange’s average of capesize time charter earnings rose to $23,600 per day on Monday, the highest level in a little over a month.
Diana employs all of its fleet on period deals, rather than play the spot market.
At the end of July, it reported a net income loss of $2.8m and a net loss attributed to common stockholders of $4.2m for the second quarter, compared with a net profit a year earlier.
Time charter revenue fell to $56m, down from $67.4m year on year.
After the completion of the previously announced sale of the 177,700-dwt capesize Houston (built 2009), Diana’s fleet will consist of 38 dry bulk vessels: four newcastlemaxes, eight capesizes, five post-panamaxes, six kamsarmaxes, six panamaxes and nine ultramaxes.
Today, the carrying capacity of the fleet including the Houston is 4.4m dwt with a weighted average age of 11.06 years.
