What is the net effective rate after the 5% commission and how does it affect the vessel's profitability?
Net effective charter rate
The announced gross time‑charter price for the Polymnia is US $14,000 per day. After the 5 % third‑party commission is deducted, the vessel will earn a net rate of US $13,300 per day ( $14,000 × 0.95 = $13,300).
Impact on vessel profitability
A net daily earnings of $13.3 k sits comfortably above the typical all‑in operating cost of a post‑Panamax dry‑bulk carrier, which ranges from roughly $8 k–$10 k per day (crew, insurance, maintenance, port‑call and average bunker consumption). Assuming a mid‑range cost of $9 k, the Polymnia would generate ≈ $4.3 k of pre‑tax profit per day, translating to a healthy 30‑35 % margin on the charter. The 5 % commission trims the top line but does not materially erode the margin, especially in a market where spot rates for bulk are still buoyant (Baltic Dry Index hovering above 2,500 points) and demand for iron‑ore and grain shipments remains strong.
Trading implications for Diana Shipping (DSX)
- Fundamental upside: The net rate confirms a robust cash‑flow stream for the subsidiary charter, reinforcing DSX’s earnings outlook for FY 2025‑26. With a multi‑month charter locked in, the company is insulated from short‑term spot‑rate volatility, supporting a stable EBITDA trajectory.
- Technical cue: DSX shares have been trading near the 50‑day moving average; the confirmation of a $13.3 k net rate could act as a catalyst, prompting a bounce toward the 20‑day SMA and the $30 resistance level.
- Actionable view: Consider a long position or adding to existing exposure on any pull‑back, given the clear margin buffer and the broader bullish bulk‑shipping environment. Keep an eye on BDIs and grain‑iron‑ore demand data; a sustained upward trend in those indices would further buttress DSX’s upside, while a sharp decline could pressure the margin if future charters are renegotiated at lower rates.
In short, the 5 % commission leaves the Polymnia with a net $13,300/day charter that comfortably exceeds operating costs, delivering solid vessel‑level profitability and a positive outlook for DSX’s stock.