Diana Shipping Inc. specializes in the ownership and bareboat charter-in of dry bulk vessels, determined as one business segment. Each of the company’s vessels is owned through a separate wholly-owned subsidiary.
As of December 31, 2023, the company’s fleet consisted of 41 vessels of which 39 in operation, owned and chartered-in, having a combined carrying capacity of 4.4 million dead weight tons, or dwt, and a weighted averageage of 10.4 years and two Kamsarmax vessels under construction.
As...
Diana Shipping Inc. specializes in the ownership and bareboat charter-in of dry bulk vessels, determined as one business segment. Each of the company’s vessels is owned through a separate wholly-owned subsidiary.
As of December 31, 2023, the company’s fleet consisted of 41 vessels of which 39 in operation, owned and chartered-in, having a combined carrying capacity of 4.4 million dead weight tons, or dwt, and a weighted averageage of 10.4 years and two Kamsarmax vessels under construction.
As of December 31, 2023, the company had a fleet of 40 dry bulk carriers, owned and chartered-in, consisting of nineUltramax, seven Panamax, six Kamsarmax, five Post-Panamax, nine Capesize and four Newcastlemaxvessels, having a combined carrying capacity of approximately 4.5 million dwt and a weighted average ageof 10.5 years.
The company operates its vessels worldwide, in markets that have historically exhibited seasonal variations in demand, and as a result, in charter hire rates. The dry bulk carrier market is typically stronger in the fall and winter months in anticipation of increased consumption of coal and other raw materials in the northern hemisphere during the winter months. In addition, unpredictable weather patterns in these months tend to disrupt vessel scheduling and supplies of certain commodities. This seasonality has a limited direct impact on the company’s operating results as the company charters its vessels to customers pursuant to medium-term and long-termtime charter agreements.
Management of The company’s Fleet
The commercial and technical management of the company’s fleet, owned and bareboat chartered-in, as well as the provision of administrative services relating to the fleet’s operations, are carried out by the company’s wholly-owned subsidiary, Diana Shipping Services S.A., which the company refers to as DSS, and Diana Wilhelmsen Management Limited, a 50/50 joint venture with Wilhelmsen Ship Management, which the company refers to as DWM.
Customers
The company’s customers include regional and international companies, mainly with concentrations below 10% of the company’s gross revenues. During 2023, only one of the company’s charterers accounted for 13% of its revenues.
The company charters its dry bulk carriers, owned and bareboat chartered-in, to customers pursuant to time charters.
Acquisitions
In January 2023, the company took delivery of DSI Aquarius, a 2016 built Ultramax dry bulk vessel of 60,309 dwt. The vessel is one of nine modern Ultramax dry bulk vessels that the company entered into an agreement to purchase in August 2022.
In February 2024, the company signed shipbuilding contracts for two 81,200 dwt methanol dual fuel new-building Kamsarmax dry bulk vessels to be built at Tsuneishi Group (Zhoushan) Shipbuilding Inc., China. The vessels are expected to be delivered to the company by the second half of 2027 and the first half of 2028, respectively.
Vessel Disposals
In January 2023, the company agreed to sell to an unrelated third party the vessel Aliki. The vessel was delivered to her new owners on February 8, 2023.
In February 2023, the company agreed to sell to OceanPal, a related party, the vessel Melia. The vessel was delivered to her new owners on February 8, 2023.
In October 2023, the company agreed to sell to an unrelated third party the vessel Boston. The vessel was delivered to her new owners on December 6, 2023.
In January 2024, the company agreed to sell to an unrelated third party the vessel Artemis. The vessel was delivered to her new owners on March 5, 2024.
In February 2024, the company agreed to sell to an unrelated third party, the vessel Houston. The vessel is expected to be delivered to the buyer latest by September 16, 2024.
In November 2023, the company entered into a joint venture agreement, with two unrelated companies to form Windward Offshore GmbH & Co. KG, or Windward, for the purpose of establishing and operating an offshore wind vessel company.
Environmental and Other Regulations in the Shipping Industry
A variety of government and private entities subject the company’s vessels to both scheduled and unscheduled inspections. These entities include the local port authorities (applicable national authorities, such as the United States Coast Guard (USCG), harbor master or equivalent), classification societies, flag state administrations (countries of registry) and charterers, particularly terminal operators.
The International Maritime Organization, the United Nations agency for maritime safety and the prevention of pollution by vessels (the ‘IMO’), has adopted the International Convention for the Prevention of Pollution from Ships, 1973, as modified by the Protocol of 1978 relating thereto, collectively referred to as MARPOL 73/78 and herein as ‘MARPOL’; the International Convention for the Safety of Life at Sea of 1974 (SOLAS Convention); and the International Convention on Load Lines of 1966 (the ‘LL Convention’).
In September of 1997, the IMO adopted Annex VI to MARPOL to address air pollution from vessels. Effective May 2005, Annex VI sets limits on sulfur oxide and nitrogen oxide emissions from all commercial vessel exhausts and prohibits ‘deliberate emissions’ of ozone depleting substances (such as halons and chlorofluorocarbons), emissions of volatile compounds from cargo tanks, and the shipboard incineration of specific substances. Annex VI also includes a global cap on the sulfur content of fuel oil and allows for special areas to be established with more stringent controls on sulfur emissions. Emissions of ‘volatile organic compounds’ from certain vessels, and the shipboard incineration (from incinerators installed after January 1, 2000) of certain substances (such as polychlorinated biphenyls, or ‘PCBs’) are also prohibited. All the company’s vessels are compliant in all material respects with these regulations.
The company has obtained applicable documents of compliance for its offices and safety management certificates for all of its vessels for which the certificates are required by the IMO. The company has obtained Anti-fouling System Certificates for all of its vessels that are subject to the Anti-fouling Convention (International Convention on the Control of Harmful Anti-fouling Systems on Ships).
History
The company was founded in 1999. It was incorporated under the laws of Liberia in 1999. The company was formerly known as Diana Shipping Investments Corp. and changed its name to Diana Shipping Inc. in 2005. The company was re-domiciled from the Republic of Liberia to the Republic of the Marshall Islands in 2005.
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