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Genco Shipping & Trading Limited Announces Plan to Sign Time Charters for Capesize Newbuilding and Panamax Vessel

Nov 16, 2009
Expands Time Charter Coverage to 79% for 2009 and 50% for 2010

NEW YORK, Nov. 16 /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 Claudius, a Capesize newbuilding, with Cargill International S.A. for 10.5 to 13.5 months at a rate of $36,000 per day, less a 5% third-party brokerage commission. The time charter for the Genco Claudius will commence upon delivery of the vessel, which is expected during December 2009, and is subject to the completion of definitive documentation.

The Company also announced it has reached an agreement to extend the time charter for the Genco Leader, a 1999-built Panamax vessel, with Baumarine AS for 10.5 to 13.5 months at a rate of $20,000 per day, less a 5% third party brokerage commission. The time charter is expected to commence following the expiration of the vessel's current time charter and is subject to the completion of definitive documentation.

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:

                                                                Net
                                                        Cash  Revenue
                                             Charter   Daily   Daily  Expected
                     Year                   Expiration  Rate    Rate  Delivery
    Vessel          Built   Charterer          (1)      (2)     (3)     (4)
    ------          -----   ---------          ---      ---     ---     ---
    Capesize Vessels
    ----------------
    Genco Augustus   2007    Cargill         December   45,263    62,750    -
                             International   2009
                             S.A.
    Genco Tiberius   2007    Cargill         January    45,263    62,750    -
                             International   2010
                             S.A.
    Genco London     2007    SK Shipping     August     57,500    64,250    -
                             Co., Ltd        2010
    Genco Titus      2007    Cargill         September  45,000(5) 46,250    -
                             International   2011
                             S.A.
    Genco            2008    Cargill         August     52,750(5)           -
     Constantine             International   2012
                             S.A.
    Genco Hadrian    2008    Cargill         October    65,000(5)           -
                             International   2012
                             S.A.
    Genco Commodus   2009    Morgan Stanley  June       36,000              -
                             Capital         2011
                             Group Inc.
    Genco Maximus    2009    Cargill         December   31,750              -
                             International   2009
                             S.A.
    Genco Claudius   2009(6) Cargill         10.5 to    36,000(6)      Q4 2009
                             International   13.5
                                 S.A.        Months from
                                             Delivery

    Panamax Vessels
    ---------------
    Genco Beauty     1999    LD Commodities  March      19,125(7)           -
                             Suisse,         2010
                             Geneva
    Genco Knight     1999    Swissmarine     January    16,500(8)           -
                             Services S.A.   2010
    Genco Leader     1999    Baumarine AS/   Jan 10/  20,742/20,000(9)      -
                             Klaveness       Dec 10
                             Chartering
    Genco Vigour     1999    C Transport     December   20,000              -
                             Panamax Ltd.    2009
    Genco Acheron    1999    Global          July       55,250              -
                             Chartering      2011
                             Ltd (a
                             subsidiary of
                             ArcelorMittal
                             Group)
    Genco Surprise   1998    Hanjin          December   42,100              -
                             Shipping        2010
                             Co., Ltd.
    Genco Raptor     2007    COSCO Bulk      April      52,800              -
                             Carriers        2012
                             Co., Ltd.
    Genco Thunder    2007    Baumarine AS/   Dec 09/  20,079/20,000(10)     -
                             Klaveness       Mar 10
                             Chartering

    Supramax Vessels
    ----------------
    Genco Predator   2005   Bulkhandling     April      Spot(11)
                            Handymax A/S     2010
    Genco Warrior    2005   Hyundai Merchant November   38,750              -
                            Marine           2010
                            Co. Ltd.
    Genco Hunter     2007   Pacific Basin    January    17,000              -
                            Chartering       2010
                            Ltd.
    Genco Cavalier   2007   Clipper Bulk     December   16,750              -
                            Shipping NV      2009

    Handymax Vessels
    ----------------
    Genco Success    1997   Korea Line       February   33,000(12)          -
                            Corporation      2011
    Genco Carrier    1998   Louis Dreyfus    March      37,000              -
                            Corporation      2011
    Genco            1997   Pacific Basin    June       37,000              -
     Prosperity             Chartering       2011
                            Ltd
    Genco Wisdom     1997   Hyundai          February   34,500              -
                            Merchant         2011
                            Marine
                            Co. Ltd.
    Genco Marine     1996   STX Pan Ocean    February   15,500(13)          -
                            Co. Ltd.         2010
    Genco Muse       2001   Global           December   15,000
                            Maritime         2009
                            Investments Ltd.

    Handysize Vessels
    -----------------
    Genco Explorer   1999   Lauritzen         February  Spot(14)            -
                            Bulkers A/S       2010
    Genco Pioneer    1999   Lauritzen         February  Spot(14)            -
                            Bulkers A/S       2010
    Genco Progress   1999   Lauritzen         February  Spot(14)            -
                            Bulkers A/S       2010
    Genco Reliance   1999   Lauritzen         November  Spot(14)            -
                            Bulkers A/S       2010
    Genco Sugar      1998   Lauritzen         November  Spot(14)            -
                            Bulkers A/S       2010
    Genco Charger    2005   Pacific Basin     November  24,000              -
                            Chartering        2010
                            Ltd.
    Genco            2003   Pacific Basin     November  24,000              -
     Challenger             Chartering        2010
                            Ltd.
    Genco Champion   2006   Pacific Basin     December  24,000              -
                            Chartering        2010
                            Ltd.

(1) The charter expiration dates presented represent the earliest dates that our charters may be terminated in the ordinary course. Except for the Genco Titus, Genco Constantine, and Genco Hadrian under the terms of each contract, the charterer is entitled to extend the 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. The charterer of the Genco Titus and Genco Hadrian has the option to extend the charter for a period of one year. The Genco Constantine has the option to extend the charter for a period of eight months.

(2) Time charter rates presented are the gross daily charterhire rates before third-party commissions ranging from 1.25% to 6.25%. In a time charter, the charterer is responsible for voyage expenses such as bunkers, port expenses, agents' fees and canal dues.

(3) For the vessels acquired with a below-market time charter rate, the approximate amount of revenue on a daily basis to be recognized as revenues is displayed in the column named "Net Revenue Daily Rate" and is net of any third-party commissions. Since these vessels were acquired with existing time charters with below-market rates, we allocated the purchase price between the respective vessels and an intangible liability for the value assigned to the below-market charterhire. This intangible liability is amortized as an increase to voyage revenues over the minimum remaining term of the charter. For cash flow purposes, we will continue to receive the rate presented in the "Cash Daily Rate" column until the charter expires.

(4) Date for vessel being delivered in the future is estimate based on guidance received from the sellers and the shipyard.

(5) These charters include a 50% index-based profit sharing component above the respective base rates listed in the table. The profit sharing between the charterer and us for each 15-day period is calculated by taking the average over that period of the published Baltic Cape Index of the four time charter routes, as reflected in daily reports. If such average is more than the base rate payable under the charter, the excess amount is allocable 50% to each of the charterer and us. A third-party brokerage commission of 3.75% based on the profit sharing amount due to us is payable out of our share.

(6) Year built for vessel being delivered in the future is an estimate based on guidance received from the sellers and the shipyard. We have reached an agreement to charter the vessel for 10.5 to 13.5 months at a rate of $36,000 per day, less a 5% third-party commission.

(7) We have reached an agreement to charter the vessel for 4 to 6.5 months at a rate of $19,125 per day, less a 5% third-party commission. The vessel entered into the time charter following the completion of its previous time charter on October 29, 2009.

(8) We have extended the short-term time charter for approximately 3.5 to 6.5 months at a rate of $16,500 per day, less a 5% third-party commission. The vessel entered into the time charter following the completion of its previous time charter on October 4, 2009.

(9) We reached an agreement to enter the vessel into the Baumarine Pool with an option to convert the balance period of the charter party to a fixed rate, but only after June 1, 2009. We exercised the option to convert the balance period of the charter party to a fixed rate on June 3, 2009 at a gross rate of $20,742 per day. We further reached an agreement to charter the vessel for 10.5 to 13.5 months at a rate of $20,000 per day, less a 5% third-party commission. The vessel is expected to enter into the time charter following the completion of its previous time charter on or about January 16, 2010.

(10) We have reached an agreement to charter the vessel for 3.5 to 6 months at a rate of $20,000 per day, less a 5% third-party commission. The vessel is expected to enter into the time charter following the completion of its previous time charter on December 15, 2009.

(11) We entered the vessel into the Bulkhandling Handymax Pool with an option to convert the balance period of the charter party to a fixed rate, but only after January 1, 2009. We extended the charter party by an additional 5 to 7.5 months starting November 5, 2009. In addition to a 1.25% third-party brokerage commission, the charter party calls for a management fee.

(12) We extended the time charter for an additional 35 to 37.5 months at a rate of $40,000 per day for the first 12 months, $33,000 per day for the following 12 months, $26,000 per day for the next 12 months and $33,000 per day thereafter less a 5% third-party commission. In all cases, the rate for the duration of the time charter will average $33,000 per day. For purposes of revenue recognition, the time charter contract is reflected on a straight-line basis at approximately $33,000 per day for 35 to 37.5 months in accordance with U.S. GAAP.

(13) We have reached an agreement to extend the time charter contract for this vessel for 3 to 5.5 months at a rate of $15,500 per day less a 5% third-party commission. The extension commenced following the completion of its previous time charter on November 11, 2009.

(14) We have reached an agreement to enter these vessels into a spot pool managed by Lauritzen Bulkers beginning at the expiration of their current time charters in August 2009. Under the pool agreement, we can withdraw up to three vessels with three months' notice until December 31, 2009 and the remaining two vessels with 12 months' notice. After December 31, 2009, we can withdraw up to two vessels with three months' notice and the remaining three vessels with 12 months' notice.

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 34 drybulk vessels consisting of eight Capesize, eight Panamax, four Supramax, six Handymax and eight Handysize vessels, with an aggregate carrying capacity of approximately 2,734,000 dwt. After the expected delivery of one additional vessel the Company has agreed to acquire, Genco Shipping & Trading Limited will own a fleet of 35 drybulk vessels, consisting of nine Capesize, eight Panamax, four Supramax, six Handymax and eight Handysize vessels, with an aggregate carrying capacity of approximately 2,905,000 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 following: (i) changes in demand or rates in the drybulk shipping industry; (ii) changes in the supply of or demand for drybulk products, generally or in particular regions; (iii) changes in the supply of drybulk carriers including newbuilding of vessels or lower than anticipated scrapping of older vessels; (iv) changes in rules and regulations applicable to the cargo industry, including, without limitation, legislation adopted by international organizations or by individual countries and actions taken by regulatory authorities; (v) increases in costs and expenses including but not limited to: crew wages, insurance, provisions, repairs, maintenance and general and administrative expenses; (vi) the adequacy of our insurance arrangements; (vii) changes in general domestic and international political conditions; (viii) 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; (ix) the number of offhire days needed to complete repairs on vessels and the timing and amount of any reimbursement by our insurance carriers for insurance claims including offhire days; (x) the Company's acquisition or disposition of vessels; (xi) the fulfillment of the closing conditions under, or the execution of customary additional documentation for, the Company's agreement to acquire one drybulk vessel; (xii) the completion of definitive documentation with respect to time charters; (xiii) charterers' compliance with the terms of their charters in the current market environment; and other factors listed from time to time in our public filings with the Securities and Exchange Commission including, without limitation, the Company's Annual Reports on Form 10-K for the year ended December 31, 2008 and its reports on Form 10-Q and Form 8-K.

SOURCE Genco Shipping & Trading Limited

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