Diana Shipping has timechartered its panamax bulker Nirefs to Transgrain Shipping (Rotterdam) for 11 to 14 months at a gross rate of $4,600 per day, minus 5% commission. The charter period commences on Friday.
The NYSE-listed company expects the contract to generate around $1.5m of gross revenue for the minimum 11-month period of the charter.
The reported rate is a 39% reduction on what Nirefs was earning on its previous one-year timecharter to Glencore, which was concluded on January 12. The contract was fixed in December 2014 at a rate of $7,500 per day, less 5% commission.
By way of comparison, London-based shipbroker Alibra Shipping estimates one-year timecharter rates for panamax vessels at $6,000 daily for ships in the Atlantic basin and $5,200 per day for those in the Pacific.
Niref‘s lower rate shows the weakening state of dry bulk shipping markets. The Baltic Dry Index today fell to a new record low for the eighth time in as many consecutive trading days. It was assessed at 383 points, having fallen 11 points since yesterday.
Similarly, the Baltic Panamax Index is at its lowest ever level and was assessed at 388 points today, down 11 on yesterday. The index’s timecharter average rate today is $3,103 per day, a decrease of $85 – another historic low.
Weak demand and worsening commodity markets have also hit Diana Shipping’s share price hard. The stock lost 43.5% of its value between January 8 and 13, but has fared better today. Shares are currently trading at $2.44, an increase of $0.30 since markets opened in the US.