Diana Shipping has ensured that an incoming capesize bulker newbuilding that it acquired in a December 2021 resale will remain busy for quite some time. The Semiramis Paliou-led owner of 35 dry bulk vessels on Wednesday fixed the 181,500-dwt Florida (built 2022) for five years to trader Bunge at $25,900 per day. The fixture has been signed for at least 58 months and may be extended to 62 months. New York-listed Diana expects to make at least $45m in revenue off the deal. It is expected to start on 29 March, the same day that Japan’s Namura Shipbuilding plans to deliver the vessel to the Greek shipowner.

“This is a very rare event indeed but indicative of the confidence many charterers are gaining that this freight market will remain elevated,” Clarksons Securities analyst Omar Nokta told TradeWinds. “Most of the term charter deals over the past year have been for durations of 12 months or less. I can’t recall a 5-year deal for a cape in quite some time, especially one at these levels.”

The Baltic Exchanger’s average spot rate for the ships, also known as the capesize 5TC, stands at $18,928 per day after jumping by 20% on Wednesday. The daily rate of $25,900 per day is a “nice premium” to the average forward freight agreement rate of $22,000 per day over the next five years, Jefferies analyst Randy Giveans said. “That said, this capesize is a brand-new 2022 delivery, so it should earn a premium to a 5- to 10-year-old capesize,” he told TradeWinds. “Diana Shipping is clearly a market-leader in time charters, and charters like this are part of their fleet strategy.”

The Florida is the first capesize that Athens-based Diana has acquired in six years. The company has not disclosed the seller that placed the order for the newbuilding with Namura. Diana’s ships, which range in size from panamaxes to newcastlemaxes, are fixed for between a few months to almost two years, according to its website. Most of the charters are from 12 to 18 months in duration.