Under the contract, Diana Shipping will provide one of its Panamax dry bulk carriers - the m/v Protefs - for Cargill at a gross rate of $11,750 per day, minus a 4.75 percent commission paid to third parties for a minimum eleven to a maximum fourteen month period.

The Protefs is a 73,630 dwt Panamax dry bulk carrier built in 2004. The charter is expected to commence on or about July 28, 2011.

The previous charterer (Hanjin Shipping Company) had the option to redeliver the vessel at the earliest on August 18, 2011. However, they have agreed to compensate the owners for the difference between the new rate and the previous rate for the period from July 28, 2011 to August 18, 2011.

Starting from August 18, 2011, this employment is expected to generate approximately $3.65m of gross revenues for the minimum scheduled period of the charter.

Earlier this month, Diana Shipping has taken delivery of the m/v Corona, renamed Arethusa, a 73,593 dwt Panamax dry bulk carrier built in 2007.

With the addition of Arethusa, Diana Shipping fleet currently consists of 24 dry bulk carriers (15 Panamax, 1 Post-Panamax and 8 Capesize) with a weighted average age of 5.8 years. The company also revealed two Newcastlemax new-building dry bulk carriers that are expected to be delivered during the first half of 2012.

Will the deal benefit the firms?

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