Investors

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

Jan 18, 2007

Appoints Chartering Manager

NEW YORK, Jan. 18 /PRNewswire-FirstCall/ -- Genco Shipping & Trading Limited (Nasdaq: GSTL) today announced it has reached an agreement in principle to extend the time charter for the Genco Marine, a 1996-built Handymax vessel currently on charter with NYK Bulkship Europe S.A. 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, subject to completion of definitive documentation, would commence following the expiration of the vessel's current time charter on or about March 29, 2007.

Robert Gerald Buchanan, President, said, "Genco continues to take advantage of the strong rate environment as we extend our time charter for the Genco Marine at an improved rate with NYK Bulkship Europe S.A., a leading international charterer. Upon signing this agreement, we will have successfully increased our time charter coverage for 2007 and will have secured approximately 61% of our fleet's available days on contracts for the year. Consistent with our strategy and focus on providing shareholders with stable and substantial dividends, we intend to continue to seek opportunities to lock in the majority of our vessels on favorable time charters."

The Company also announced it has named Matthew Doherty as Chartering Manager, effective immediately. In the new position, Mr. Doherty will be responsible for managing the daily chartering activities for Genco's 20-vessel fleet. Mr. Doherty brings 25 years of experience in the shipping industry, including extensive chartering responsibilities. Prior to joining Genco, he served in the chartering department of General Maritime Management LLC since 2000.

The following table sets forth information about the current employment of Genco's fleet after giving effect to the new time charter:

                          Vessel       Expiration               Time Charter
           Vessel          Type         Date(1)                   Rates (2)

     1  Genco Beauty      Panamax    February 2007                $29,000
     2  Genco Knight      Panamax    February 2007                $29,000
     3  Genco Leader      Panamax    January 2009                 $25,650 (3)
     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
                                     11 to 13 months from
                                     delivery to new charterer    $30,000 (5)
     7  Genco Surprise    Panamax    November 2007                $25,000
     8  Genco Muse        Handymax   September 2007               $26,500 (6)
     9  Genco Marine      Handymax   March 2007                   $18,000 (7)
                                     February 2008                $24,000
     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 (8)
     12 Genco Wisdom      Handymax   January 2007                 $24,000
                                     December 2007                $24,000 (9)
     13 Genco Success     Handymax   January 2007                 $23,850
                                     January 2008                 $24,000 (10)
     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 delivered to the charterer for the commencement of the time charter on January 15, 2007. 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 documentation acceptable to both Genco and AS Klaveness Chartering.

(4) The Genco Trader delivered to the charterer for the commencement of the time charter on 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 documentation to both Genco and Baumarine AS.

(5) The Company has reached an agreement in principle to commence a time charter for eleven to thirteen months at a rate of $30,000 per day less a 5% third party brokerage commission. The time charter rate agreed to in principle is subject to the completion of definitive documentation acceptable for both Genco and STX Panocean Co. Ltd.

(6) 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.

(7) 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. The time charter rate agreed to in principle is subject to the completion of definitive documentation acceptable for both Genco and NYK Bulkship Europe S.A.

(8) Time charter rate agreed to in principle is subject to the completion of definitive documentation acceptable to both Genco and Pacific Basin Chartering 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 extended time charter commenced on January 14, 2007. The extension is subject to completion of definitive documentation acceptable to both Genco and Hyundai Merchant Marine Co., Ltd.

(10) 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 documentation 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 documentation that the Company may execute with NYK Bulkship Europe S.A. for the time charter described above, 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

CONTACT:
John C. Wobensmith
Chief Financial Officer
Genco Shipping & Trading Limited
1-646-443-8555
Web site:
http://www.gencoshipping.com