Genco Shipping & Trading Limited Announces Plan to Extend Time Charter for Handymax Vessel

Sep 18, 2006

NEW YORK, Sept 18, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Genco Shipping & Trading Limited (Nasdaq: GSTL) today announced it has reached an agreement in principle to extend the time charter for the Genco Success, a 1997-built Handymax vessel currently on charter with Korea Line Corporation. The extended time charter would be for an additional eleven to thirteen months at a rate of $24,000 per day, less a 5% third party brokerage commission. The time charter would commence February 1, 2007 following the expiration of the vessel's current time charter in January 2007. The extension is subject to completion of definitive agreements acceptable to both Genco and Korea Line Corporation.

Robert Gerald Buchanan, President, said, "Genco continues to execute its strategy of securing long-term contracts with leading charterers. We are pleased to extend our time charter for the Genco Success under favorable terms as we further demonstrate our ability to capitalize on a rising freight market. Our long-term contracts provide stable cash flows that enable the distribution of strong dividends to Genco's shareholders. Going forward, we will maintain our focus on securing substantial time charter coverage while pursuing strategic acquisitions to drive future growth."

The following table sets forth information about the employment of Genco's fleet after giving effect to the extension:

          Vessel        Vessel Type  Expiration Date(1)  Time Charter Rates(2)
    1  Genco Beauty       Panamax      February 2007          $29,000
    2  Genco Knight       Panamax      February 2007          $29,000
    3  Genco Leader       Panamax      Spot(3)                N/A
    4  Genco Trader       Panamax      Spot(3)                N/A
    5  Genco Vigour       Panamax      December 2006          $29,000
    6  Genco Muse         Handymax     September 2007         $26,500 (4)
    7  Genco Marine       Handymax     March 2007             $18,000 (5)
    8  Genco Prosperity   Handymax     March 2007             $23,000
    9  Genco Carrier      Handymax     December 2006          $24,000
    10 Genco Wisdom       Handymax     January 2007           $24,000
    11 Genco Success      Handymax     January 2007           $23,850
                                       January 2008           $24,000
    12 Genco Glory        Handymax     December 2006          $18,250
    13 Genco Explorer     Handysize    July 2007              $13,500
    14 Genco Pioneer      Handysize    August 2007            $13,500
    15 Genco Progress     Handysize    August 2007            $13,500
    16 Genco Reliance     Handysize    July 2007              $13,500
    17 Genco Sugar        Handysize    July 2007              $13,500
    18 Genco Surprise(6)  Panamax      12 to 14 months
                                       from delivery date     $25,000
    19 Genco Commander(6) Handymax     11 to 13 months
                                       from delivery date     $19,750
    20 Genco Acheron(6)   Panamax      To be determined       To be determined

    (1) The dates presented on this table represent the earliest dates that
        our charters may be terminated. Except with respect to the Genco
        Trader and Genco Leader charters, under the terms of the contracts,
        charterers are entitled to extend time charters from two to four
        months in order to complete the vessel's final voyage plus any time
        the vessel has been off-hire.

    (2) Time charter rates presented are the gross daily charterhire rates
        before the payments of brokerage commissions ranging from 1.25% to 5%
        to unaffiliated third parties. In a time charter, the charterer is
        responsible for voyage expenses such as bunkers, port expenses,
        agents' fees and canal dues.

    (3) The Genco Trader and Genco Leader entered into the Baumarine Pool
        arrangement in December 2005 and February 2006, respectively.

    (4) Since this vessel was acquired with an existing time charter at an
        above market rate, the Company allocates the purchase price between
        the vessel and a deferred asset for the value assigned to the above
        market charterhire. This deferred asset is amortized as a reduction to
        voyage revenues over the remaining term of the charter, resulting in a
        daily rate of approximately $21,500 recognized as revenue. For cash
        flow purposes, the Company will continue to receive $26,500 per day
        less commissions.

    (5) The time charter rate was $26,000 until March 2006 and $18,000
        thereafter. For purposes of revenue recognition, the charter contract
        is reflected on a straight-line basis in accordance with GAAP.

    (6) On July 10, 2006, Genco Shipping & Trading Limited agreed to acquire
        three drybulk vessels from affiliates of Franco Compania Naviera S.A.
        The acquisition is subject to customary closing conditions and the
        vessels are expected to be delivered between August and November of

    About Genco Shipping & Trading Limited

Genco Shipping & Trading Limited transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes. After the acquisition of the three vessels, Genco Shipping & Trading Limited will own a fleet of 20 drybulk vessels, consisting of seven Panamax, eight Handymax and five Handysize vessels, with a carrying capacity of approximately 1,029,000 dwt.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and observations. Included among the factors that, in our view, could cause actual results to differ materially from the forward-looking statements contained in this report are the terms and conditions of any definitive agreements that the Company and Korea Line Corporation may enter into for such extension, and other factors listed from time to time in our public filings with the Securities and Exchange Commission including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2005, our Quarterly Reports on Form 10-Q, and our reports on Form 8-K. Our ability to pay dividends in any period will depend upon factors including the limitations under our loan agreements, applicable provisions of Marshall Islands law and the final determination by the Board of Directors each quarter after its review of our financial performance. The timing and amount of dividends, if any, could also be affected by factors affecting cash flows, results of operations, required capital expenditures, or reserves. As a result, the amount of dividends actually paid may vary.

SOURCE Genco Shipping & Trading Limited

John C. Wobensmith,
Chief Financial Officer of Genco Shipping & Trading Limited,