Investors

Genco Shipping & Trading Limited Announces Plan to Sign Time Charter for Panamax Vessel

Aug 30, 2007

NEW YORK, Aug. 30 /PRNewswire-FirstCall/ -- Genco Shipping & Trading Limited (NYSE: GNK) today announced that it has reached an agreement to enter into a time charter for the Genco Surprise, a 1998-built Panamax vessel, with Hanjin Shipping Co., Ltd. The time charter will be for 35 to 37 months at a rate of $42,100 per day, less a 4.5% third party brokerage commission. The time charter, which is subject to the completion of definitive documentation, is expected to commence following the expiration of the vessel's current time charter.

Robert Gerald Buchanan, President, commented, "We are pleased to secure the Genco Surprise on a three-year time charter at a gross rate of more than 68% higher than the previous level. With this agreement, management has once again demonstrated its expertise in capitalizing on a rate environment that remains strong and signing vessels to contracts over the long term at accretive levels. Currently, we have approximately 88% of our fleet's estimated available days secured on contracts for the remainder of 2007 and 59% for 2008. As we continue to strengthen our significant time charter coverage, we expect to further enhance our position to distribute sizable dividends."

    The following table reflects the current employment of Genco's current
fleet as well as the employment or other status of vessels expected to join
Genco's fleet:
                                                      Time
                                        Charter       Charter      Expected
    Vessel        Charterer            Expiration(1)  Rate(2)      Delivery(3)

    Capesize
     Vessels
    Genco         Cargill                December
     Augustus      International S.A.     2009        $45,263(4)            -
    Genco         Cargill                January
     Tiberius      International S.A.     2010         45,263(4)            -
    Genco         SK Shipping            September
     London        Co., Ltd               2010         57,500(4)(5)   Q4 2007
    Genco         Cargill                December
     Titus         International S.A.     2011         45,000(4)(6)   Q4 2007
    Genco         To be determined
     Constantine   ("TBD")               TBD              TBD         Q2 2008
    Genco
     Hadrian      TBD                    TBD              TBD         Q4 2008
    Genco
     Commodus     TBD                    TBD              TBD         Q2 2009
    Genco
     Maximus      TBD                    TBD              TBD         Q2 2009
    Genco
     Claudius     TBD                    TBD              TBD         Q3 2009

    Panamax
     Vessels
    Genco         Cargill                May
     Beauty        International S.A.     2009         31,500               -
    Genco                                May
     Knight       SK Shipping Ltd.        2009         37,700               -
    Genco                                December
     Leader       A/S Klaveness           2008         25,650(7)            -
    Genco                                October
     Trader       Baumarine AS            2007         25,750(7)            -
    Genco         STX Panocean (UK)      March
     Vigour        Co. Ltd.               2009         29,000(8)            -
    Genco         STX Panocean (UK)      February
     Acheron       Co. Ltd.               2008         30,000               -
    Genco         Cosco Bulk             November
     Surprise      Carrier Co., Ltd.      2007         25,000               -
                  Hanjin Shipping        35 to 37
                   Co., Ltd.              months from
                                          delivery
                                          to new
                                          charterer    42,100

    Supramax
     Vessels
    Genco         Intermare
     Predator      Transport GmbH        January
    Genco
     Warrior      TBD                    TBD              TBD         Q4 2007
    Genco
     Hunter       TBD                    TBD              TBD         Q4 2007

    Handymax
     Vessels
    Genco                                January
     Success      KLC                     2008         24,000               -
    Genco                                October
     Commander    A/S Klaveness           2007         19,750               -
    Genco         Pacific Basin          February
     Carrier       Chartering Ltd.        2008         24,000               -
    Genco         A/C Pacific Basin      April
     Prosperity    Chartering Ltd.        2008         26,000               -
    Genco                                November
     Wisdom       HMMC                    2007         24,000               -
    Genco         NYK Bulkship           February
     Marine        Europe S.A.            2008         24,000               -
    Genco         Qatar Navigation       September
     Muse          QSC                    2007         26,500(10)           -

    Handysize
     Vessels
    Genco         Lauritzen              September
     Explorer      Bulkers A/S            2007         13,500               -
                                         August
                                          2009         19,500
    Genco         Lauritzen              September
     Pioneer       Bulkers A/S            2007         13,500               -
                                         August
                                          2009         19,500
    Genco         Lauritzen              September
     Progress      Bulkers A/S            2007         13,500               -
                                         August
                                          2009         19,500
    Genco         Lauritzen              September
     Reliance      Bulkers A/S            2007         13,500               -
                                         August
                                          2009         19,500
    Genco         Lauritzen              September
     Sugar         Bulkers A/S            2007         13,500               -
                                         August
                                          2009         19,500
    Genco         Pacific Basin          35 to 37.5
     Charger       Chartering Ltd.        months from
                                          delivery
                                          date         24,000         Q4 2007
    Genco         Pacific Basin          35 to 37.5
     Challenger    Chartering Ltd.        months from
                                          delivery
                                          date         24,000         Q4 2007
    Genco         Pacific Basin          35 to 37.5
     Champion      Chartering Ltd.        months from
                                          delivery
                                          date         24,000         Q4 2007

(1) The charter expiration dates presented represent the earliest dates that our charters may be terminated in the ordinary course. Under the terms of each contract, the charterer is 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 6.25% to third parties, except as indicated for the Genco Trader and the Genco Leader in note 4 below. In a time charter, the charterer is responsible for voyage expenses such as bunkers, port expenses, agents' fees and canal dues.

(3) Dates for vessels delivering in the future are estimates based on guidance received from the sellers and/or respective shipyards.

(4) The time charter rate is below current market rates and therefore will result in a liability that will amortize as an increase to revenue. See Note 2, Summary of Significant Accounting Policies under the caption "Vessel acquisitions" in the footnotes to our financial statements in our Form 10-Q for the quarterly period ended June 30, 2007 for disclosure of our policy.

(5) The Genco London is scheduled to be on charter with SK Shipping Co., Ltd. for 35 to 39 months at a gross rate of $57,500 per day. The charter is due to expire between September 2010 and January 2011.

(6) The Genco Titus is scheduled to be on charter with Cargill International S.A., for 48 months at a gross rate of $45,000 per day. The charter, which is due to expire in December 2011, also includes a 50 percent index-based profit sharing component. The charterer has the option to extend the charter for a period of one year.

(7) For the Genco Leader and the Genco Trader, the time charter rate presented is the net daily charterhire rate. There are no payments of brokerage commissions associated with these time charters.

(8) We have entered into a time charter for 23 to 25 months at a rate of $33,000 per day for the first 11 months, $25,000 per day for the following 11 months and $29,000 per day thereafter, less a 5% third-party brokerage commission. For purposes of revenue recognition, the time charter contract is reflected on a straight-line basis at approximately $29,000 per day for 23 to 25 months in accordance with generally accepted accounting principles in the United States, or U.S. GAAP. The time charter, commenced following the expiration of the vessel's previous time charter on May 5, 2007.

(9) The Genco Predator is currently on charter with Intermare Transport GmbH at a gross rate of $22,500 per day. The charter is due to expire between January 2008 and March 2008. The rate is below current market rates and therefore will result in a liability that will amortize as an increase to revenue. See our Summary of Significant Accounting Policies under the caption "Vessel acquisitions" in our footnotes in the June 30, 2007 Form 10-Q for disclosure of our policy.

(10) Since this vessel was acquired with an existing time charter at an above-market rate, we allocated the purchase price between the vessel and an intangible asset for the value assigned to the above-market charterhire. This intangible asset is amortized as a reduction to voyage revenues over the remaining term of the charter, resulting in a daily rate of approximately $22,000 recognized as revenues. For cash flow purposes, we will continue to receive $26,500 per day until the charter expires.

About Genco Shipping & Trading Limited

Genco Shipping & Trading Limited transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes. Genco Shipping & Trading Limited currently owns a fleet of 21 drybulk vessels consisting of two Capesize, seven Panamax, seven Handymax and five Handysize vessels, with a carrying capacity of approximately 1,343,000 dwt. After the delivery of six vessels from affiliates of Evalend Shipping Co. S.A. and the seven remaining vessels from companies within the Metrostar Management Corporation group, Genco Shipping & Trading Limited will own a fleet of 34 drybulk vessels, consisting of nine Capesize, seven Panamax, three Supramax, seven Handymax and eight Handysize vessels, with a carrying capacity of approximately 2,814,000 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 press release are (i) the terms and conditions of any definitive documentation that the Company may execute with Hanjin Shipping Co., Ltd. for the time charter described above; (ii) the fulfillment of the closing conditions under the Company's agreements to acquire the six Evalend drybulk vessels; (iii) the fulfillment of the closing conditions under the Company's agreement to acquire the remaining seven Metrostar drybulk vessels; (iv) increases in costs and expenses including but not limited to: crew wages, insurance, provisions, repairs, maintenance and general and administrative expenses; (v) changes in the condition of the Company's vessels or applicable maintenance or regulatory standards (which may affect, among other things, our anticipated drydocking or maintenance and repair costs) and unanticipated drydock expenditures; 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, 2006, 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 of Genco Shipping & Trading Limited
+1-646-443-8555

Web site: http://www.gencoshipping.com