Investors

Genco Shipping & Trading Limited Announces Plan to Sign Time Charters for Three Drybulk Vessels

Dec 14, 2006

Increases Time Charter Coverage for 2007

NEW YORK, Dec. 14 /PRNewswire-FirstCall/ -- Genco Shipping & Trading Limited (Nasdaq: GSTL) today announced it has reached an agreement in principle to enter into a time charter for the Genco Carrier, a 1998-built Handymax vessel, with Pacific Basin Chartering Ltd. The Company also reached an agreement in principle to extend the time charter for the Genco Wisdom, a 1997-built Handymax vessel, currently on charter with Hyundai Merchant Marine Co., Ltd. Both time charters would be for eleven to thirteen months at a rate of $24,000 per day, less a 5% third party brokerage commission.

The Company also announced that it has reached an agreement in principle to commence a new time charter with Baumarine AS for the Genco Trader, a 1990-built Panamax vessel for ten to twelve months at a net rate of $25,750 per day, equivalent to a gross rate of approximately $27,105. Since December of 2005, the vessel traded in the Baumarine Pool, a spot pool of approximately 45 vessels.

The time charters for the Genco Trader and the Genco Wisdom are expected to commence on or about December 23, 2006 and January 14, 2007, respectively. The time charter for the Genco Carrier is expected to commence following the expiration of its current time charter. All three time charters are subject to the completion of definitive agreements.

Robert Gerald Buchanan, President, said, "Since our inception, management's ability to take advantage of strong freight markets and lock away a large portion of our fleet on time charters has served our shareholders well. Consistent with this approach, we are pleased to sign these most recent time charters at favorable rates. As a result of these three agreements with leading international charterers, we have increased significantly our secured revenue stream and currently have approximately 47% of our fleet's available days secured on contracts for 2007."

    The following table sets forth information about the current employment of
Genco's fleet:


                                     2006

        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       October 2007           $25,750(4)
    5   Genco Vigour   Panamax       December 2006          $29,000
    6   Genco Acheron  Panamax       January 2007           $28,500
    7   Genco Surprise Panamax       November 2007          $25,000
    8   Genco Muse     Handymax      September 2007         $26,500(5)
    9   Genco Marine   Handymax      March 2007             $18,000(6)
    10  Genco
         Prosperity    Handymax      March 2007             $23,000
    11  Genco Carrier  Handymax      December 2006          $24,000
                                     11 to 13 months
                                     from delivery
                                     to new charterer       $24,000(7)
    12  Genco Wisdom   Handymax      January 2007           $24,000
                                     December 2007          $24,000(8)
    13  Genco Success  Handymax      January 2007           $23,850
                                     January 2008           $24,000(9)
    14  Genco Glory    Handymax      December 2006          $18,250
    15  Genco
         Commander     Handymax      October 2007           $19,750
    16  Genco Explorer Handysize     July 2007              $13,500
    17  Genco Pioneer  Handysize     August 2007            $13,500
    18  Genco Progress Handysize     August 2007            $13,500
    19  Genco Reliance Handysize     July 2007              $13,500
    20  Genco Sugar    Handysize     July 2007              $13,500


    (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 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 Leader entered into the Baumarine Pool arrangement in
        February 2006.

    (4) The Genco Trader is currently trading under the Baumarine Pool
        arrangement, and is planned to deliver to the charterer for the
        commencement of the time charter on or about December 23, 2006. The
        time charter rate presented is the net daily charterhire rate. There
        are no payments of brokerage commissions associated with this time
        charter agreement. Time charter rate agreed to in principle is subject
        to the completion of definitive agreements acceptable to both Genco
        and Baumarine AS.

    (5) 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.

    (6) 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.

    (7) Time charter rate agreed to in principle is subject to the completion
        of definitive agreements acceptable to both Genco and Pacific Basin
        Chartering Ltd.

    (8) The Company extended the time charter 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 January 14, 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 Hyundai Merchant Marine Co.,
        Ltd.

    (9) The Company extended the time charter 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.

About Genco Shipping & Trading Limited

Genco Shipping & Trading Limited transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes. Currently, Genco Shipping & Trading Limited owns 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 Hyundai Merchant Marine Co.,Ltd., Pacific Basin Chartering Ltd., and Baumarine AS 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.

SOURCE Genco Shipping & Trading Limited

CONTACT:
John C. Wobensmith,
Chief Financial Officer,
Genco Shipping & Trading Limited,
+1-646-443-8555