Investors

Genco Shipping & Trading Limited Announces Plan to Sign Time Charter for the Genco Vigour

Mar 13, 2007

Increases Time Charter Coverage to 75% for 2007

NEW YORK, March 13 /PRNewswire-FirstCall/ -- Genco Shipping & Trading Limited (Nasdaq: GSTL) today announced it has reached an agreement to enter into a time charter for the Genco Vigour, a 1999-built Panamax vessel, with STX Panocean (UK) Co. Ltd. The time charter will be for 23 to 25 months at an average rate of approximately $29,000(1) per day, less a 5% third party brokerage commission. Specifically, the time charter rate will be $33,000 per day for the first 11 months, $25,000 per day for the following 11 months and $29,000 per day thereafter. The time charter will commence following the expiration of the vessel's current time charter.

Robert Gerald Buchanan, President, said, "Our two-year time charter for the Genco Vigour further demonstrates management's expertise in locking away a large portion of our fleet on time charters through a balanced portfolio comprised of both medium-term and longer-term contracts at favorable rates with top-tier charterers. With this agreement, we currently have approximately 75% of our fleet's available days secured on contracts for the year. We remain committed to seeking to provide our shareholders with sizable dividends while maintaining our financial flexibility as we continue to pursue our growth strategy."

    (1) For purposes of revenue recognition, the time charter contract will be
        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 following table sets forth information about the employment of Genco's
fleet:


    Vessel             Charterer                   Charter        Time Charter
                                                   Expiration (1)   Rate (2)
    Panamax Vessels
    Genco Beauty       Cargill                     April 2007      $29,000
    Genco Knight       BHP                         April 2007       29,000
    Genco Leader       AS Klaveness                December 2008    25,650(3)
    Genco Trader       Baumarine AS                October 2007     25,750(3)
    Genco Vigour       BHP                         April 2007       29,000
                       STX Panocean (UK) Co. Ltd.  23 to 25 months
                                                   from delivery to
                                                   new charterer    29,000(4)
    Genco Acheron      Global Maritime
                       Investments Ltd.            March 2007       28,500
                       STX Panocean (UK) Co. Ltd.  February 2008    30,000(5)
    Genco Surprise     Cosco Bulk Carrier
                       Co., Ltd.                   November 2007    25,000

    Handymax Vessels
    Genco Success      KLC                         January 2008     24,000
    Genco Commander    A/S Klaveness               October 2007     19,750
    Genco Carrier      DBCN Corporation            March 2007       24,000
                       Pacific Basin               January 2008     24,000(6)
                       Chartering Ltd.
    Genco Prosperity   DS Norden                   April 2007       23,000
                       A/C Pacific Basin
                       Chartering Ltd.             11 to 13 months
                                                   from delivery to
                                                   new charterer    26,000
    Genco Wisdom       HMMC                        November 2007    24,000
    Genco Marine       NYK Europe                  March 2007       18,000(7)
                                                   February 2008    24,000
    Genco Muse         Qatar Navigation QSC        September 2007   26,500(8)

    Handysize Vessels
    Genco Explorer     Lauritzen Bulkers           July 2007        13,500
    Genco Pioneer      Lauritzen Bulkers           August 2007      13,500
    Genco Progress     Lauritzen Bulkers           August 2007      13,500
    Genco Reliance     Lauritzen Bulkers           July 2007        13,500
    Genco Sugar        Lauritzen Bulkers           July 2007        13,500

    (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 5%
        to third parties, except as indicated for the Genco Trader and the
        Genco Leader in note 3 below. 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 and the Genco Trader were delivered to the charterer
        for the commencement of the time charter on January 15, 2007 and
        December 24, 2006, respectively.  For each of these vessels, the time
        charter rate presented is the net daily charterhire rate. There are no
        payments of brokerage commissions associated with these time charters.
    (4) We have reached an agreement to commence 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.
    (5) We have reached an agreement to commence a time charter for 11 to 13
        months at a rate of $30,000 per day, less a 5% third-party brokerage
        commission. The estimated charter expiration is based on the time
        charter beginning in March 2007, the earliest possible termination of
        the previous charterer.
    (6) The estimated charter expiration is based on the time charter
        beginning in March 2007, the earliest possible termination of the
        previous charterer.
    (7) The time charter rate was $26,000 until March 2006 and $18,000
        thereafter until March 2007.  For purposes of revenue recognition, the
        time charter contract through March 2007 is reflected on a straight-
        line basis in accordance with U.S. GAAP.  Additionally, we have
        reached an agreement with the current charterer for an additional 11
        to 13 months at a rate of $24,000 per day, less a 5% third-party
        brokerage commission.
    (8) 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 owns a fleet of 19 drybulk vessels, consisting of seven Panamax, seven Handymax and five Handysize vessels, with a carrying capacity of approximately 988,000 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 STX Panocean (UK) Co. Ltd. for the time charter described above or other charters for which definitive documentation has not yet been executed 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.

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 (