Company: DSX-PB
Filing Date: 2025-03-21
Form Type: 20-F
Source: 0001562762-25-000050
Chunk: 139

Company: DIANA SHIPPING INC.
Filing Date: 2025-03-21
Form: 20-F
Item: Item 5
Chunk 139
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er bears the cost

of bunkers, we also have bunker gain or

loss deriving from

the price differences of bunkers. When a vessel is delivered to a charterer,

bunkers are purchased by the

charterer and sold back

to us on the

redelivery of the vessel.

Bunker gain, or loss,

results

when a vessel

is redelivered by her charterer and delivered to the next charterer

at different bunker prices, or quantities.

We usually

pay commissions

ranging from

4.75% to

5.00% of

the total

daily charter

hire rate

of each

charter

to unaffiliated ship brokers, in-house brokers

associated with the charterers, depending on the number of

brokers

involved with

arranging the

charter.

In

addition, we

pay

a commission

to

DWM

and to

DSS for

those vessels

for which

they provide

commercial management

services. The

commissions paid

to DSS

are

eliminated from our consolidated financial statements as intercompany

transactions.

Vessel Operating Expenses

Vessel operating expenses include

crew wages and

related costs,

the cost of

insurance, expenses

relating

to repairs and

maintenance, the cost

of spares and

consumable stores, tonnage

taxes, environmental

plan

costs and HSQ and vetting. Our vessel operating expenses generally

represent fixed costs.

Vessel Depreciation

The cost of our

vessels is depreciated

on a straight-line

basis over the estimated

useful life of each

vessel.

Depreciation is based

on the

cost of the

vessel less

its estimated salvage

value. We

estimate the useful

life of

our dry

bulk vessels

to be

25 years from

the date

of initial

delivery from

the shipyard,

which we

believe

is common in the

dry bulk shipping industry.

Furthermore, we estimate the salvage

values of our vessels

based on historical average prices

of the cost of

the light-weight ton of

vessels being scrapped. Effective

July 1, 2023, the Company

changed its estimated

scrap rate of its

vessels from $250 per

lightweight ton to

$400 per lightweight

ton, calculated

based on the

average demolition

prices