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What changed in GENCO SHIPPING & TRADING LTD's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of GENCO SHIPPING & TRADING LTD's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+328 added−359 removedSource: 10-K (2024-02-27) vs 10-K (2023-02-22)

Top changes in GENCO SHIPPING & TRADING LTD's 2023 10-K

328 paragraphs added · 359 removed · 252 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

88 edited+26 added−20 removed175 unchanged
Biggest changeIf a vessel remains off-hire for more than 30 consecutive days, the time charter may be cancelled at the charterer’s option. ​ In connection with the charter of each of our vessels, we incur commissions generally ranging from 1.25% to 6.25% of the total daily charterhire rate of each charter or total freight revenue to third parties, depending on the number of brokers involved with arranging the relevant charter. ​ We monitor developments in the drybulk shipping industry on a regular basis and strategically adjust the time and duration of employment for our vessels according to market conditions as they become available for hire. ​ The following table sets forth information about the current employment of the vessels in our fleet as of February 21, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Charter ​ ​ Vessel Built Expiration(1) Cash Daily Rate(2) ​ ​ ​ ​ ​ ​ ​ ​ Capesize Vessels ​ ​ ​ ​ ​ ​ ​ Genco Augustus 2007 February 2023 Voyage ​ Genco Tiberius 2007 April 2023 Voyage ​ Genco London 2007 December 2022 ​ Voyage ​ Genco Titus 2007 March 2023 ​ Voyage ​ Genco Constantine 2008 March 2023 ​ Voyage ​ Genco Hadrian 2008 March 2023 ​ Voyage ​ Genco Commodus 2009 March 2023 ​ Voyage ​ Genco Maximus 2009 September 2023 ​ $27,500 ​ Genco Claudius 2010 March 2023 ​ 94% of BCI ​ Genco Tiger 2011 April 2023 ​ Voyage ​ Genco Lion 2012 March 2023 ​ Voyage ​ Baltic Bear 2010 March 2023 ​ Voyage ​ Baltic Wolf 2010 June 2023 ​ $30,250 ​ Genco Resolute ​ 2015 ​ February 2024 ​ 127% of BCI ​ Genco Endeavour ​ 2015 ​ January 2024 ​ 127% of BCI ​ Genco Defender ​ 2016 ​ March 2023 ​ 121% of BCI ​ Genco Liberty ​ 2016 ​ March 2023 ​ Voyage ​ ​ ​ ​ ​ ​ ​ ​ ​ Ultramax Vessels ​ ​ ​ ​ ​ ​ ​ Baltic Hornet 2014 April 2023 ​ $24,000 ​ Baltic Wasp 2015 June 2023 ​ $25,500 ​ Baltic Scorpion 2015 March 2023 ​ $30,500 ​ Baltic Mantis 2015 April 2023 ​ $3,500 ​ Genco Weatherly ​ 2014 ​ March 2023 ​ Voyage ​ 7 ​ Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Charter ​ ​ Vessel Built Expiration(1) Cash Daily Rate(2) ​ ​ ​ ​ ​ ​ ​ ​ Genco Columbia ​ 2016 ​ March 2023 ​ Voyage ​ Genco Magic ​ 2014 ​ April 2023 ​ $11,500 ​ Genco Vigilant ​ 2015 ​ March 2023 ​ $12,250 ​ Genco Freedom ​ 2015 ​ March 2023 ​ $23,375 ​ Genco Enterprise ​ 2016 ​ March 2023 ​ Voyage ​ Genco Constellation ​ 2017 ​ December 2022 ​ Voyage ​ Genco Madeleine ​ 2014 ​ March 2023 ​ $10,500 ​ Genco Mayflower ​ 2017 ​ April 2023 ​ $5,300 ​ Genco Mary ​ 2022 ​ March 2023 ​ $8,250 ​ Genco Laddey ​ 2022 ​ April 2023 ​ $9,500 ​ ​ ​ ​ ​ ​ ​ ​ ​ Supramax Vessels ​ ​ ​ ​ ​ ​ ​ Genco Predator 2005 March 2023 ​ $21,500 ​ Genco Warrior 2005 April 2023 ​ Voyage ​ Genco Hunter 2007 March 2023 ​ $15,000 ​ Genco Aquitaine 2009 April 2023 ​ $6,250 ​ Genco Ardennes 2009 March 2023 ​ Voyage ​ Genco Auvergne 2009 March 2023 ​ Voyage ​ Genco Bourgogne 2010 March 2023 ​ $8,500 ​ Genco Brittany 2010 March 2023 ​ $11,650 ​ Genco Languedoc 2010 February 2023 ​ Voyage ​ Genco Picardy 2005 March 2023 ​ Voyage ​ Genco Pyrenees 2010 March 2023 ​ $10,000 ​ Genco Rhone 2011 March 2023 ​ $9,000 ​ (1) The charter expiration dates presented represent the earliest dates that our charters may be terminated in the ordinary course.
Biggest changeIf a vessel remains off-hire for more than 30 consecutive days, the time charter may be cancelled at the charterer’s option. ​ In connection with the charter of each of our vessels, we incur commissions generally ranging from 1.25% to 6.25% of the total daily charterhire rate of each charter or total freight revenue to third parties, depending on the number of brokers involved with arranging the relevant charter. ​ We monitor developments in the drybulk shipping industry on a regular basis and strategically adjust the time and duration of employment for our vessels according to market conditions as they become available for hire. ​ The following table sets forth information about the current employment of the vessels in our fleet as of February 27, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Charter ​ ​ Vessel Built Expiration(1) Cash Daily Rate(2) ​ ​ ​ ​ ​ ​ ​ ​ Capesize Vessels ​ ​ ​ ​ ​ ​ ​ Genco Augustus 2007 March 2024 Voyage ​ Genco Tiberius 2007 February 2024 Voyage ​ Genco London 2007 April 2024 ​ Voyage ​ Genco Titus 2007 March 2024 ​ Voyage ​ Genco Constantine 2008 March 2024 ​ $16,350 ​ Genco Hadrian 2008 March 2024 ​ $13,750 ​ Genco Maximus 2009 March 2024 ​ $21,000 ​ Genco Claudius ​ 2010 ​ February 2024 ​ Voyage ​ Genco Tiger 2011 March 2024 ​ Voyage ​ Genco Lion 2012 April 2024 ​ Voyage ​ Baltic Bear 2010 April 2024 ​ Voyage ​ Baltic Wolf 2010 April 2024 ​ Voyage ​ Genco Resolute ​ 2015 ​ April 2024 ​ 127% of BCI (3) ​ Genco Endeavour ​ 2015 ​ April 2024 ​ 127% of BCI (3) ​ Genco Defender ​ 2016 ​ April 2024 ​ 125% of BCI (3) ​ Genco Liberty ​ 2016 ​ March 2024 ​ Voyage ​ Genco Ranger ​ 2016 ​ February 2025 ​ 128% of BCI (3) ​ Genco Reliance ​ 2016 ​ January 2025 ​ 128% of BCI (3) ​ ​ ​ ​ ​ ​ ​ ​ ​ 7 ​ Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Charter ​ ​ Vessel Built Expiration(1) Cash Daily Rate(2) ​ ​ ​ ​ ​ ​ ​ ​ Ultramax Vessels ​ ​ ​ ​ ​ ​ ​ Baltic Hornet 2014 March 2024 ​ Voyage ​ Baltic Wasp 2015 April 2024 ​ $16,500 ​ Baltic Scorpion 2015 March 2024 ​ $17,500 ​ Baltic Mantis 2015 April 2024 ​ Voyage ​ Genco Weatherly ​ 2014 ​ March 2024 ​ $17,750 ​ Genco Columbia ​ 2016 ​ March 2024 ​ Voyage ​ Genco Magic ​ 2014 ​ March 2024 ​ Voyage ​ Genco Vigilant ​ 2015 ​ April 2024 ​ $19,000 ​ Genco Freedom ​ 2015 ​ April 2024 ​ Voyage ​ Genco Enterprise ​ 2016 ​ March 2024 ​ Voyage ​ Genco Constellation ​ 2017 ​ March 2024 ​ $16,000 ​ Genco Madeleine ​ 2014 ​ March 2024 ​ $16,000 ​ Genco Mayflower ​ 2017 ​ March 2024 ​ $20,000 ​ Genco Mary ​ 2022 ​ March 2024 ​ Voyage ​ Genco Laddey ​ 2022 ​ March 2024 ​ $30,500 ​ ​ ​ ​ ​ ​ ​ ​ ​ Supramax Vessels ​ ​ ​ ​ ​ ​ ​ Genco Predator 2005 March 2024 ​ Voyage ​ Genco Warrior 2005 April 2024 ​ $15,000 ​ Genco Hunter 2007 March 2024 ​ Voyage ​ Genco Aquitaine 2009 March 2024 ​ $6,500 ​ Genco Ardennes 2009 March 2024 ​ $23,500 ​ Genco Auvergne 2009 March 2024 ​ $38,000 ​ Genco Bourgogne 2010 March 2024 ​ $15,000 ​ Genco Brittany 2010 March 2024 ​ $18,750 ​ Genco Languedoc 2010 March 2024 ​ $18,250 ​ Genco Picardy 2005 April 2024 ​ $12,500 ​ Genco Pyrenees 2010 March 2024 ​ Voyage ​ Genco Rhone 2011 March 2024 ​ $17,000 ​ (1) The charter expiration dates presented represent the earliest dates that our charters may be terminated in the ordinary course.
As a result, we are subject to calls payable to the associations based on the group’s claim records as well as the claim records of all other members of the individual associations and members of the pool of P&I Associations comprising the International Group. ​ Loss of Hire Insurance ​ We maintain loss of hire insurance for our major bulk vessels, which covers business interruptions and related losses that result from the loss of use of a vessel.
As a result, we are subject to calls payable to the Associations based on the Group’s claim records as well as the claim records of all other members of the individual P&I Associations and members of the pool of Associations comprising the International Group. ​ Loss of Hire Insurance ​ We maintain loss of hire insurance for our major bulk vessels, which covers business interruptions and related losses that result from the loss of use of a vessel.
Amendments that took effect on January 1, 2020, also reflect the latest material from the UN Recommendations on the Transport of Dangerous Goods, including (1) new provision regarding IMO type 9 tank, (2) new abbreviations for segregation groups, and (3) special provisions for carriage of lithium batteries and of vehicles powered by flammable liquid or gas.
Amendments that took effect on January 1, 2020, also reflect the latest material from the UN Recommendations on the Transport of Dangerous Goods, including (1) new provisions regarding IMO type 9 tank, (2) new abbreviations for segregation groups, and (3) special provisions for carriage of lithium batteries and of vehicles powered by flammable liquid or gas.
ITEM 1. BUSINESS ​ OVERVIEW ​ General ​ We are a New York City-based company incorporated in the Marshall Islands in 2004. We transport iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes through the ownership and operation of drybulk carrier vessels.
ITEM 1. BUSINESS ​ OVERVIEW ​ General ​ We are a New York City-based company incorporated in the Marshall Islands in 2004. We transport iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes through the ownership and operation of drybulk vessels.
The United States (“U.S.”) Oil Pollution Act of 1990, or OPA, which imposes virtually unlimited liability upon owners, operators and demise charterers of vessels trading in the U.S.-exclusive economic zone for certain oil pollution accidents in the United States, has made liability insurance more expensive for ship owners and operators trading in the U.S. market. ​ 9 ​ Table of Contents While we maintain hull and machinery insurance, war risks insurance, protection and indemnity cover, and freight, demurrage and defense cover for our fleet and loss of hire insurance for our major bulk vessels in amounts that we believe to be prudent to cover normal risks in our operations, we may not be able to achieve or maintain this level of coverage throughout a vessel’s useful life.
The United States (“U.S.”) Oil Pollution Act of 1990, or OPA, which imposes virtually unlimited liability upon owners, operators and demise charterers of vessels trading in the U.S.-exclusive economic zone for certain oil pollution accidents in the United States, has made liability insurance more expensive for ship owners and operators trading in the U.S. market. ​ While we maintain hull and machinery insurance, war risks insurance, protection and indemnity cover, and freight, demurrage and defense cover for our fleet and loss of hire insurance for our major bulk vessels in amounts that we believe to be prudent to cover normal risks in our operations, we may not be able to achieve or maintain this level of coverage throughout a vessel’s useful life.
The EPA will regulate these ballast water discharges and other discharges incidental to the normal operation of certain vessels within United States waters pursuant to the Vessel Incidental Discharge Act (“VIDA”), which was signed into law on December 4, 2018 and replaces the 2013 Vessel General Permit (“VGP”) 19 ​ Table of Contents program (which authorizes discharges incidental to operations of commercial vessels and contains numeric ballast water discharge limits for most vessels to reduce the risk of invasive species in U.S. waters, stringent requirements for exhaust gas scrubbers, and requirements for the use of environmentally acceptable lubricants) and current Coast Guard ballast water management regulations adopted under the U.S.
The EPA will regulate these ballast water discharges and other discharges incidental to the normal operation of certain vessels within United States waters pursuant to the Vessel Incidental Discharge Act (“VIDA”), which was signed into law on December 4, 2018 and replaces the 2013 Vessel General Permit (“VGP”) program (which authorizes discharges incidental to operations of commercial vessels and contains numeric ballast water discharge limits for most vessels to reduce the risk of invasive species in U.S. waters, stringent requirements for exhaust gas scrubbers, and requirements for the use of environmentally acceptable lubricants) and current Coast Guard ballast water management regulations adopted under the U.S.
By IMO resolution, administrations are encouraged to ensure that cyber-risk management systems must be incorporated by ship-owners and managers by their first annual Document of Compliance audit after January 1,2021. In February 2021, the U.S. Coast Guard published guidance on addressing cyber risks in a vessel’s safety management system.
By IMO resolution, administrations are encouraged to ensure that cyber-risk management systems are incorporated by ship-owners and managers by their first annual Document of Compliance audit after January 1, 2021. In February 2021, the U.S. Coast Guard published guidance on addressing cyber risks in a vessel’s safety management system.
The limitation on liability similarly does not apply if the responsible party fails or refuses to (i) report the incident as required by law where the responsible party knows or has reason to know of the incident; (ii) reasonably cooperate and assist as requested in connection with oil removal activities; or (iii) without sufficient cause, comply with an order issued under the Federal Water Pollution Act (Section 311 (c), (e)) or the Intervention on the High Seas Act.
The limitation on liability similarly does not apply if the responsible party fails or refuses to (i) report the incident as required by law where the responsible party knows or has reason to know of the incident; (ii) reasonably cooperate and assist as 18 ​ Table of Contents requested in connection with oil removal activities; or (iii) without sufficient cause, comply with an order issued under the Federal Water Pollution Act (Section 311 (c), (e)) or the Intervention on the High Seas Act.
In June 2022, SOLAS also set out new amendments that will take effect January 1, 2024, which include new requirements for: (1) the design for safe mooring operations, (2) the Global Maritime Distress and Safety System (“GMDSS”), (3) watertight integrity, (4) watertight doors on cargo ships, (5) fault-isolation of fire detection systems, (6) life-saving appliances, and (7) safety of ships using LNG as fuel.
In June 2022, SOLAS also set out new amendments that took effect on January 1, 2024, which include new requirements for: (1) the design for safe mooring operations, (2) the Global Maritime Distress and Safety System (“GMDSS”), (3) watertight integrity, (4) watertight doors on cargo ships, (5) fault-isolation of fire detection systems, (6) life-saving appliances, and (7) safety of ships using LNG as fuel.
Ownership of drybulk carriers is highly fragmented and is divided among approximately 2,400 independent drybulk carrier owners. ​ PERMITS AND AUTHORIZATIONS ​ We are required by various governmental and quasi-governmental agencies to obtain certain permits, licenses, certificates and other authorizations with respect to our vessels.
Ownership of drybulk carriers is highly fragmented and is divided among approximately 2,600 independent drybulk carrier owners. ​ PERMITS AND AUTHORIZATIONS ​ We are required by various governmental and quasi-governmental agencies to obtain certain permits, licenses, certificates and other authorizations with respect to our vessels.
However, additional laws and regulations, environmental or otherwise, may be adopted which could limit our ability to do business or increase the cost of our doing business. ​ INSURANCE ​ General ​ The operation of any drybulk vessel includes risks such as mechanical failure, collision, property loss, cargo loss or damage and business interruption due to political circumstances in foreign countries, piracy, hostilities and labor strikes.
However, additional laws and regulations, environmental or otherwise, may be adopted which could limit our ability to do business or increase the cost of our doing business. ​ 9 ​ Table of Contents INSURANCE ​ General ​ The operation of any drybulk vessel includes risks such as mechanical failure, collision, property loss, cargo loss or damage and business interruption due to political circumstances in foreign countries, piracy, hostilities and labor strikes.
Protection and indemnity insurance is a form of mutual indemnity insurance, extended by protection and indemnity mutual associations, or “clubs.” Subject to the “capping” discussed below, our coverage, except for pollution, is unlimited. ​ We maintain protection and indemnity insurance coverage for pollution of $1 billion per vessel per incident.
Protection and indemnity insurance is a form of mutual indemnity insurance, extended by P&I Associations, or “Clubs.” Subject to the “capping” discussed below, our coverage, except for pollution, is unlimited. ​ We maintain protection and indemnity insurance coverage for pollution of $1 billion per vessel per incident.
Vessels that are 15 years old or older are required, as part of the intermediate survey process, to be drydocked every 24 to 36 months for inspection of the underwater portions of the vessel and for necessary repairs stemming from the inspection. ​ In addition to the classification inspections, many of our customers regularly inspect our vessels as a precondition to chartering them for voyages.
Vessels that are 15 years old or older are required, as part of the intermediate survey process, to be drydocked every 24 to 36 months for inspection of the underwater portions of the vessel and for necessary repairs stemming from the inspection. ​ 8 ​ Table of Contents In addition to the classification inspections, many of our customers regularly inspect our vessels as a precondition to chartering them for voyages.
These entities include the local port authorities (applicable national authorities such as the United States Coast Guard (“USCG”), harbor master or equivalent), classification societies, flag state administrations (countries of registry) and 10 ​ Table of Contents charterers, particularly terminal operators. Certain of these entities require us to obtain permits, licenses, certificates and other authorizations for the operation of our vessels.
These entities include the local port authorities (applicable national authorities such as the United States Coast Guard (“USCG”), harbor master or equivalent), classification societies, flag state administrations (countries of registry) and charterers, particularly terminal operators. Certain of these entities require us to obtain permits, licenses, certificates and other authorizations for the operation of our vessels.
Flag states that have ratified SOLAS and STCW generally employ the classification societies, which have incorporated SOLAS and STCW requirements into their class rules, to undertake surveys to confirm compliance. 14 ​ Table of Contents The IMO's Maritime Safety Committee and MEPC, respectively, each adopted relevant parts of the International Code for Ships Operating in Polar Water (the “Polar Code”).
Flag states that have ratified SOLAS and STCW generally employ the classification societies, which have incorporated SOLAS and STCW requirements into their class rules, to undertake surveys to confirm compliance. The IMO's Maritime Safety Committee and MEPC, respectively, each adopted relevant parts of the International Code for Ships Operating in Polar Water (the “Polar Code”).
Under OPA, vessel owners and operators are “responsible parties” and are jointly, severally and strictly liable (unless the spill results solely from the act or omission of a third party, an act of God or an act of war) for all 17 ​ Table of Contents containment and clean-up costs and other damages arising from discharges or threatened discharges of oil from their vessels, including bunkers (fuel).
Under OPA, vessel owners and operators are “responsible parties” and are jointly, severally and strictly liable (unless the spill results solely from the act or omission of a third party, an act of God or an act of war) for all containment and clean-up costs and other damages arising from discharges or threatened discharges of oil from their vessels, including bunkers (fuel).
The document of compliance and safety management certificate are renewed as required. Regulation II-1/3-10 of the SOLAS Convention governs ship construction and stipulates that ships over 150 meters in length must have adequate strength, integrity and stability to minimize risk of loss or pollution.
The document of compliance and safety management certificate are renewed as required. 14 ​ Table of Contents Regulation II-1/3-10 of the SOLAS Convention governs ship construction and stipulates that ships over 150 meters in length must have adequate strength, integrity and stability to minimize risk of loss or pollution.
Bureau of Safety and Environmental Enforcement’s (“BSEE”) revised Production Safety 18 ​ Table of Contents Systems Rule (“PSSR”), effective December 27, 2018, modified and relaxed certain environmental and safety protections under the 2016 PSSR. Additionally, the BSEE amended the Well Control Rule, effective July 15, 2019, which rolled back certain reforms regarding the safety of drilling operations, and former U.S.
Bureau of Safety and Environmental Enforcement’s (“BSEE”) revised Production Safety Systems Rule (“PSSR”), effective December 27, 2018, modified and relaxed certain environmental and safety protections under the 2016 PSSR. Additionally, the BSEE amended the Well Control Rule, effective July 15, 2019, which rolled back certain reforms regarding the safety of drilling operations, and former U.S.
Genco plans to continue to invest in its 13 ​ Table of Contents existing fleet to improve fuel efficiency and comply with these revised standards through its comprehensive IMO 2023 plan. ​ Safety Management System Requirements The SOLAS Convention was amended to address the safe manning of vessels and emergency training drills.
Genco plans to continue to invest in its existing fleet to improve fuel efficiency and comply with these revised standards through its comprehensive IMO 2023 plan. ​ Safety Management System Requirements ​ The SOLAS Convention was amended to address the safe manning of vessels and emergency training drills.
Costs of compliance with these regulations may be substantial. Additionally, in November 2020, MEPC 75 adopted amendments to the BWM 15 ​ Table of Contents Convention which would require a commissioning test of the ballast water management system for the initial survey or when performing an additional survey for retrofits.
Costs of compliance with these regulations may be substantial. Additionally, in November 2020, MEPC 75 adopted amendments to the BWM Convention which would require a commissioning test of the ballast water management system for the initial survey or when performing an additional survey for retrofits.
The head of our technical management team has over 30 years of experience in the shipping industry. ​ Under our technical management agreement with GSSM, GSSM is obligated to: ​ ● provide personnel to supervise the maintenance and general efficiency of our vessels; ​ ● arrange and supervise the maintenance of our vessels to our standards to assure that our vessels comply with applicable national and international regulations and the requirements of our vessels’ classification societies; ​ ● select and train the crews for our vessels, including assuring that the crews have the correct certificates for the types of vessels on which they serve; ​ ● check the compliance of the crews’ licenses with the regulations of the vessels’ flag states and the International Maritime Organization, or IMO; ​ ● arrange the supply of spares and stores for our vessels; and ​ ● report expense transactions to us, and make its procurement and accounting systems available to us. ​ OUR CHARTERS ​ As of February 21, 2023, we employed 18 of our vessels on spot market voyage charters where we provide a vessel for the transportation of goods between a load port and discharge port at a specified per-ton or on a lump sum 6 ​ Table of Contents basis.
The head of our technical management team has over 30 years of experience in the shipping industry. ​ Under our technical management agreement with GSSM, GSSM is obligated to: ​ ● provide personnel to supervise the maintenance and general efficiency of our vessels; ​ ● arrange and supervise the maintenance of our vessels to our standards to assure that our vessels comply with applicable national and international regulations and the requirements of our vessels’ classification societies; ​ ● select and train the crews for our vessels, including assuring that the crews have the correct certificates for the types of vessels on which they serve; ​ ● check the compliance of the crews’ licenses with the regulations of the vessels’ flag states and the International Maritime Organization, or IMO; ​ ● arrange the supply of spares and stores for our vessels; and ​ ● report expense transactions to us, and make its procurement and accounting systems available to us. ​ 6 ​ Table of Contents OUR CHARTERS ​ As of February 27, 2024, we fixed 20 of our vessels on spot market voyage charters where we provide a vessel for the transportation of goods between a load port and discharge port at a specified per-ton or on a lump sum basis.
Specifically, we have: ● Purchased modern, fuel-efficient vessels with lower overall fuel consumption than older vessels in order to reduce our fleet’s greenhouse gas emissions; ● Divested certain older, less fuel-efficient vessels; ● Outfitted 31 of our vessels with Energy Saving Devices (ESDs) to reduce the fuel consumptions of these vessels, which may include Mewis Ducts, Fins, Propellers, Propeller Boss Cap Fins and LED lamps; ● Installed performance-monitoring systems on board 31 of our vessels to gather real-time fuel consumption data to optimize the voyage efficiency of these vessels and are in the process of installing such systems on our remaining vessels; ● Utilized a third-party data collection platform that analyzes information from our vessels in an effort to reduce fuel consumption, CO2 and greenhouse gas emissions; ● Established and executed a compliance program regarding IMO 2020 fuel regulations (as described below); ● Installed ballast water treatment systems on 43 vessels in our current fleet, with installation of such a system on the remaining vessel planned during 2023; ● Partnered with a third-party firm to conduct internal audits of our vessels with a goal of identifying areas of potential improvement on the daily maintenance and operation of our vessels in order to improve the quality of the services our vessels provide and to mitigate operational risks; ● Installed Engine Power Limitation (EPL) systems on certain major bulk vessels to increase the level of energy efficiency by optimizing maintenance of the ship’s engine power level ; and ● Implemented an IMO 2023 compliance plan for select vessels within our fleet in which we have installed ESDs and applied high performance paint systems, among other initiatives International Maritime Organization (IMO) The International Maritime Organization, the United Nations agency for maritime safety and the prevention of pollution by vessels (the “IMO”), has adopted the International Convention for the Prevention of Pollution from Ships, 1973, as modified by the Protocol of 1978 relating thereto, collectively referred to as MARPOL 73/78 and herein as “MARPOL,” the International Convention for the Safety of Life at Sea of 1974 (“SOLAS Convention”), and the International Convention on Load Lines of 1966 (the “LL Convention”).
Specifically, we have: ● Purchased modern, fuel-efficient vessels with lower overall fuel consumption than older vessels in order to reduce our fleet’s greenhouse gas emissions; ● Divested certain older, less fuel-efficient vessels; ● Outfitted 37 of our vessels with Energy Saving Devices (ESDs) to reduce the fuel consumptions of these vessels, which may include Mewis Ducts, Fins, Propellers, Propeller Boss Cap Fins and LED lamps; 11 ​ Table of Contents ● Installed performance-monitoring systems on board the majority of our vessels to gather real-time fuel consumption data to optimize the voyage efficiency of these vessels and are in the process of installing such systems on our remaining vessels; ● Utilized a third-party data collection platform that analyzes information from our vessels in an effort to reduce fuel consumption, CO2 and greenhouse gas emissions; ● Established and executed a compliance program regarding IMO 2020 fuel regulations (as described below); ● Installed ballast water treatment systems on the entire fleet; ● Partnered with a third-party firm to conduct internal audits of our vessels with a goal of identifying areas of potential improvement on the daily maintenance and operation of our vessels in order to improve the quality of the services our vessels provide and to mitigate operational risks; ● Installed Engine Power Limitation (EPL) systems on certain major bulk vessels to increase the level of energy efficiency by optimizing maintenance of the ship’s engine power level ; and ● Implemented an IMO 2023 compliance plan for select vessels within our fleet in which we have installed ESDs and applied high performance paint systems, among other initiatives International Maritime Organization (IMO) The International Maritime Organization, the United Nations agency for maritime safety and the prevention of pollution by vessels (the “IMO”), has adopted the International Convention for the Prevention of Pollution from Ships, 1973, as modified by the Protocol of 1978 relating thereto, collectively referred to as MARPOL 73/78 and herein as “MARPOL,” the International Convention for the Safety of Life at Sea of 1974 (“SOLAS Convention”), and the International Convention on Load Lines of 1966 (the “LL Convention”).
As a result, our revenues could be weaker during the fiscal quarters ended June 30 and September 30, and conversely, our revenues could be stronger during the quarters ended December 31 and March 31. ​ 23 ​ Table of Contents ​
As a result, our revenues could be weaker during the fiscal quarters ended March 31 and June 30, and conversely, our revenues could be stronger during the quarters ended September 30 and December 31. ​ 24 ​ Table of Contents ​
On October 27, 2016, at its 70th session, the MEPC agreed to implement a global 0.5% m/m sulfur oxide emissions limit (reduced from 3.50%) starting from January 1, 2020. This limitation can be met by using low-sulfur compliant fuel oil, alternative fuels, or certain exhaust gas cleaning systems.
On October 27, 2016, at its 70th session, the MEPC agreed to implement a global 0.5% m/m sulfur oxide emissions limit (reduced from 3.50%) starting from January 1, 2020. This limitation can 12 ​ Table of Contents be met by using low-sulfur compliant fuel oil, alternative fuels, or certain exhaust gas cleaning systems.
Of the vessels in our fleet, 18 are currently on spot market voyage charters, 20 are on fixed-rate time charter contracts, four are on spot market-related time charters, and we are currently time chartering-in three third party vessels. ​ See pages 5 – 6 for a table of our current fleet. ​ Genco’s approach towards fleet composition is to own a high-quality fleet of vessels that focuses on Capesize, Ultramax and Supramax vessels.
Of the vessels currently in our fleet, 20 are on spot market voyage charters, 20 are on fixed-rate time charter contracts, five are on spot market-related time charters, and we are currently time chartering-in four third party vessels. ​ See pages 5 – 6 for a table of our current fleet. ​ Our approach towards fleet composition is to own a high-quality fleet of vessels that focuses on Capesize, Ultramax and Supramax vessels.
The USCG regulations, intended to align with international maritime security standards, exempt non-U.S. vessels from MTSA vessel security measures, provided such vessels have on board a valid ISSC that attests to the vessel’s compliance with the SOLAS Convention security requirements and the ISPS Code. Future security measures 22 ​ Table of Contents could have a significant financial impact on us.
The USCG regulations, intended to align with international maritime security standards, exempt non-U.S. vessels from MTSA vessel security measures, provided such vessels have on board a valid ISSC that attests to the vessel’s compliance with the SOLAS Convention security requirements and the ISPS Code. Future security measures could have a significant financial impact on us.
Our vessels are typically manned with more crew members than are required by the country of the vessel’s flag in order to allow for the performance of routine maintenance duties. ​ We currently employ 36 shore-based personnel, which includes personnel in our Singapore and Copenhagen offices. In addition, approximately 970 seagoing personnel are employed on our vessels.
Our vessels are typically manned with more crew members than are required by the country of the vessel’s flag in order to allow for the performance of routine maintenance duties. ​ We currently employ 35 shore-based personnel, which includes personnel in our Singapore and Copenhagen offices. In addition, approximately 990 seagoing personnel are employed on our vessels.
Non-military, non-recreational vessels greater than 79 feet in length must continue to comply with the requirements of the VGP, including submission of a Notice of Intent (“NOI”) or retention of a PARI form and submission of annual reports. We have submitted NOIs for our vessels where required.
Non-military, non-recreational vessels greater than 79 feet in length must continue to comply with the requirements of the VGP, including submission of a Notice of Intent (“NOI”) or retention of a PARI form and submission of annual reports. We have submitted NOIs for our vessels where required. Compliance with the EPA, U.S.
For example, the IMO adopted an International Convention for the Control and Management of Ships’ Ballast Water and Sediments (the “BWM Convention”) in 2004. The BWM Convention entered into force on September 8, 2017.
For example, the IMO adopted an International Convention 15 ​ Table of Contents for the Control and Management of Ships’ Ballast Water and Sediments (the “BWM Convention”) in 2004. The BWM Convention entered into force on September 8, 2017.
We believe that our management team’s track record improves our relationships with high quality shipyards and vendors, as well as financial institutions, many of which consider reputation to be an indicator of creditworthiness. ​ 4 ​ Table of Contents ​ OUR FLEET ​ The table below summarizes the characteristics of our vessels that have been delivered to us that are currently in our fleet: ​ ​ ​ ​ ​ ​ ​ ​ Vessel Class Dwt Year Built ​ ​ ​ ​ ​ ​ ​ Genco Augustus Capesize 180,151 2007 ​ Genco Claudius Capesize 169,001 2010 ​ Genco Constantine Capesize 180,183 2008 ​ Genco Commodus Capesize 169,098 2009 ​ Genco Hadrian Capesize 169,025 2008 ​ Genco London Capesize 177,833 2007 ​ Genco Maximus Capesize 169,025 2009 ​ Genco Tiberius Capesize 175,874 2007 ​ Genco Tiger Capesize 179,185 2011 ​ Genco Titus Capesize 177,729 2007 ​ Baltic Bear Capesize 177,717 2010 ​ Genco Lion Capesize 179,185 2012 ​ Baltic Wolf Capesize 177,752 2010 ​ Genco Endeavour ​ Capesize ​ 181,060 ​ 2015 ​ Genco Resolute ​ Capesize ​ 181,060 ​ 2015 ​ Genco Defender ​ Capesize ​ 180,021 ​ 2016 ​ Genco Liberty ​ Capesize ​ 180,032 ​ 2016 ​ Baltic Hornet Ultramax 63,574 2014 ​ Baltic Wasp Ultramax 63,389 2015 ​ Baltic Scorpion Ultramax 63,462 2015 ​ Baltic Mantis Ultramax 63,470 2015 ​ Genco Weatherly ​ Ultramax ​ 61,556 ​ 2014 ​ Genco Columbia ​ Ultramax ​ 60,294 ​ 2016 ​ Genco Magic ​ Ultramax ​ 63,446 ​ 2014 ​ Genco Vigilant ​ Ultramax ​ 63,498 ​ 2015 ​ Genco Freedom ​ Ultramax ​ 63,671 ​ 2015 ​ Genco Enterprise ​ Ultramax ​ 63,473 ​ 2016 ​ Genco Madeleine ​ Ultramax ​ 63,166 ​ 2014 ​ Genco Mayflower ​ Ultramax ​ 63,304 ​ 2017 ​ Genco Constellation ​ Ultramax ​ 63,310 ​ 2017 ​ Genco Laddey ​ Ultramax ​ 61,303 ​ 2022 ​ Genco Mary ​ Ultramax ​ 61,304 ​ 2022 ​ Genco Aquitaine Supramax 57,981 2009 ​ Genco Ardennes Supramax 58,018 2009 ​ Genco Auvergne Supramax 58,020 2009 ​ Genco Bourgogne Supramax 58,018 2010 ​ Genco Brittany Supramax 58,018 2010 ​ Genco Hunter Supramax 58,729 2007 ​ Genco Languedoc Supramax 58,018 2010 ​ Genco Picardy Supramax 55,257 2005 ​ Genco Predator Supramax 55,407 2005 ​ Genco Pyrenees Supramax 58,018 2010 ​ Genco Rhone Supramax 58,018 2011 ​ Genco Warrior Supramax 55,435 2005 ​ 5 ​ Table of Contents The following groups of sister ships are included in our current fleet except as noted below: ​ ​ ​ Group Vessels 1 Genco Constantine and Genco Augustus 2 Genco Lion and Genco Tiger 3 Genco London, Baltic Wolf, Genco Titus and Baltic Bear 4 Genco Commodus, Genco Hadrian, Genco Maximus and Genco Claudius 5 Genco Resolute and Genco Endeavour 6 Genco Liberty and Genco Defender 7 Genco Enterprise, Baltic Hornet, Baltic Mantis, Baltic Scorpion and Baltic Wasp 8 Genco Auvergne, Genco Rhone, Genco Ardennes, Genco Aquitaine, Genco Brittany, Genco Languedoc, Genco Pyrenees and Genco Bourgogne 9 Genco Warrior, Genco Predator and Genco Picardy 10 Genco Magic, Genco Vigilant and Genco Freedom 11 Genco Mayflower and Genco Constellation 12 Genco Weatherly, Genco Laddey and Genco Mary ​ FLEET MANAGEMENT ​ Our management team and other employees are responsible for the commercial and strategic management of our fleet.
We believe that our management team’s track record improves our relationships with high quality shipyards and vendors, as well as financial institutions, many of which consider reputation to be an indicator of creditworthiness. ​ 4 ​ Table of Contents OUR FLEET ​ The table below summarizes the characteristics of our vessels that have been delivered to us that are currently in our fleet: ​ ​ ​ ​ ​ ​ ​ ​ Vessel Class Dwt Year Built ​ ​ ​ ​ ​ ​ ​ Genco Augustus Capesize 180,151 2007 ​ Genco Claudius ​ Capesize ​ 169,001 ​ 2010 ​ Genco Constantine Capesize 180,183 2008 ​ Genco Hadrian Capesize 169,025 2008 ​ Genco London Capesize 177,833 2007 ​ Genco Maximus Capesize 169,025 2009 ​ Genco Tiberius Capesize 175,874 2007 ​ Genco Tiger Capesize 179,185 2011 ​ Genco Titus Capesize 177,729 2007 ​ Baltic Bear Capesize 177,717 2010 ​ Genco Lion Capesize 179,185 2012 ​ Baltic Wolf Capesize 177,752 2010 ​ Genco Endeavour ​ Capesize ​ 181,057 ​ 2015 ​ Genco Resolute ​ Capesize ​ 181,060 ​ 2015 ​ Genco Defender ​ Capesize ​ 180,021 ​ 2016 ​ Genco Liberty ​ Capesize ​ 180,032 ​ 2016 ​ Genco Reliance ​ Capesize ​ 181,146 ​ 2016 ​ Genco Ranger ​ Capesize ​ 180,882 ​ 2016 ​ Baltic Hornet Ultramax 63,574 2014 ​ Baltic Wasp Ultramax 63,389 2015 ​ Baltic Scorpion Ultramax 63,462 2015 ​ Baltic Mantis Ultramax 63,467 2015 ​ Genco Weatherly ​ Ultramax ​ 61,556 ​ 2014 ​ Genco Columbia ​ Ultramax ​ 60,294 ​ 2016 ​ Genco Magic ​ Ultramax ​ 63,443 ​ 2014 ​ Genco Vigilant ​ Ultramax ​ 63,498 ​ 2015 ​ Genco Freedom ​ Ultramax ​ 63,667 ​ 2015 ​ Genco Enterprise ​ Ultramax ​ 63,472 ​ 2016 ​ Genco Madeleine ​ Ultramax ​ 63,163 ​ 2014 ​ Genco Mayflower ​ Ultramax ​ 63,304 ​ 2017 ​ Genco Constellation ​ Ultramax ​ 63,310 ​ 2017 ​ Genco Laddey ​ Ultramax ​ 61,303 ​ 2022 ​ Genco Mary ​ Ultramax ​ 61,304 ​ 2022 ​ Genco Aquitaine Supramax 57,981 2009 ​ Genco Ardennes Supramax 58,014 2009 ​ Genco Auvergne Supramax 58,020 2009 ​ Genco Bourgogne Supramax 58,018 2010 ​ Genco Brittany Supramax 58,014 2010 ​ Genco Hunter Supramax 58,729 2007 ​ Genco Languedoc Supramax 58,018 2010 ​ Genco Picardy Supramax 55,255 2005 ​ Genco Predator Supramax 55,407 2005 ​ Genco Pyrenees Supramax 58,018 2010 ​ Genco Rhone Supramax 58,018 2011 ​ Genco Warrior Supramax 55,435 2005 ​ 5 ​ Table of Contents ​ The following groups of sister ships are included in our current fleet except as noted below: ​ ​ ​ Group Vessels 1 Genco Constantine and Genco Augustus 2 Genco Lion and Genco Tiger 3 Genco London, Baltic Wolf, Genco Titus and Baltic Bear 4 Genco Hadrian, Genco Claudius and Genco Maximus 5 Genco Resolute, Genco Endeavour, Genco Ranger and Genco Reliance 6 Genco Liberty and Genco Defender 7 Genco Enterprise, Baltic Hornet, Baltic Mantis, Baltic Scorpion and Baltic Wasp 8 Genco Auvergne, Genco Rhone, Genco Ardennes, Genco Aquitaine, Genco Brittany, Genco Languedoc, Genco Pyrenees and Genco Bourgogne 9 Genco Warrior, Genco Predator and Genco Picardy 10 Genco Magic, Genco Vigilant and Genco Freedom 11 Genco Mayflower and Genco Constellation 12 Genco Weatherly, Genco Laddey and Genco Mary ​ FLEET MANAGEMENT ​ Our management team and other employees are responsible for the commercial and strategic management of our fleet.
Instead, GSSM is responsible for locating and retaining qualified officers for our vessels. The crewing agencies are responsible for each seaman’s training, travel and payroll and ensuring that all the seamen on our vessels have the qualifications and licenses required to comply with international regulations and shipping conventions.
Instead, GSSM is responsible for locating and retaining qualified officers for our vessels. The crewing agencies are responsible for each seafarer’s training, travel and payroll and ensuring that all the seafarers on our vessels have the qualifications and licenses required to comply with international regulations and shipping conventions.
In a time charter, the charterer is responsible for voyage expenses such as bunkers, port expenses, agents’ fees and canal dues. ​ CLASSIFICATION AND INSPECTION ​ All of our vessels have been certified as being “in class” by the American Bureau of Shipping (“ABS”), DNVGL or Lloyd’s Register of Shipping (“Lloyd’s”).
In a time charter, the charterer is responsible for voyage expenses such as bunkers, port expenses, agents’ fees and canal dues. ​ (3) BCI is the Baltic Capesize Index. ​ CLASSIFICATION AND INSPECTION ​ All of our vessels have been certified as being “in class” by the American Bureau of Shipping (“ABS”), DNVGL or Lloyd’s Register of Shipping (“Lloyd’s”).
To accomplish this objective, we intend to: ​ 3 ​ Table of Contents ● Continue to operate a high-quality fleet — We intend to maintain a modern, high-quality fleet that meets or exceeds stringent industry standards and complies with charterer requirements through GSSM’s rigorous and comprehensive maintenance program.
To accomplish this objective, we intend to: ​ ● Continue to operate a high-quality fleet — We intend to maintain a modern, high-quality fleet that meets or exceeds stringent industry standards and complies with charterer requirements through GSSM’s rigorous and comprehensive maintenance program.
In addition, GSSM maintains the quality of our vessels by carrying out regular inspections, both while in port and at sea. ​ ● Utilize an active commercial strategy — Our current fleet of 44 drybulk vessels concentrates on the transportation of major and minor bulk commodities globally.
In addition, GSSM maintains the quality of our vessels by carrying out regular inspections, both while in port and at sea. ​ 3 ​ Table of Contents ● Utilize an active commercial strategy — Our current fleet of 45 drybulk vessels concentrates on the transportation of major and minor bulk commodities globally.
We obtained documents of compliance and safety management certificates for all of our vessels, which are required by the IMO. 8 ​ Table of Contents ​ CREWING AND EMPLOYEES ​ Each of our vessels is crewed with 21 to 23 officers and seamen. We do not provide any seaborne personnel to crew our vessels.
We obtained documents of compliance and safety management certificates for all of our vessels, which are required by the IMO. ​ CREWING AND EMPLOYEES ​ Each of our vessels is crewed with 21 to 23 officers and seafarers. We do not provide any seaborne personnel to crew our vessels.
The 1992 Protocol changed certain limits on liability expressed using the International Monetary Fund currency unit, the Special Drawing Rights. The limits on liability have since been amended so that the compensation limits on liability were raised.
The 1992 Protocol changed certain limits on liability expressed 16 ​ Table of Contents using the International Monetary Fund currency unit, the Special Drawing Rights. The limits on liability have since been amended so that the compensation limits on liability were raised.
On December 18, 2022, the Environmental Council and European Parliament agreed to include maritime shipping emissions within the scope of the EU ETS on a gradual introduction of obligations for shipping companies to surrender allowances: 40% for verified 20 ​ Table of Contents emissions from 2024, 70% for 2025 and 100% for 2026.
On December 18, 2022, the Environmental Council and European Parliament agreed to include maritime shipping emissions within the scope of the EU ETS on a gradual introduction of obligations for shipping companies to surrender allowances equivalent to a portion of their carbon emissions: 40% for verified emissions from 2024, 70% for 2025 and 100% for 2026.
Our major bulk vessels are primarily used to transport iron ore and coal, while our minor bulk vessels are primarily used to transport grains, steel products and other drybulk cargoes such as cement, scrap, fertilizer, bauxite, nickel ore, salt and sugar.
Capesize vessels represent our major bulk vessel category while Ultramax and Supramax vessels represent our minor bulk vessel category. Our major bulk vessels are primarily used to transport iron ore, coal and bauxite, while our minor bulk vessels are primarily used to transport grains, steel products and other drybulk cargoes such as cement, scrap, fertilizer, nickel ore, salt and sugar.
MEPC 79 revised the EEDI calculation guidelines to include a CO2 conversion factor for ethane, a reference to the updated ITCC guidelines, and a clarification that in case of a ship with multiple load line certificates, the maximum certified summer draft should be used when determining the deadweight.
MEPC 79 revised the EEDI calculation guidelines to include a CO2 conversion factor for ethane, a reference to the updated ITCC guidelines, and a clarification that in case of a ship with multiple load line certificates, the maximum certified summer draft should be used when determining the deadweight. The amendments will enter into force on May 1, 2024.
Our fleet currently consists of 44 drybulk carriers, including 17 Capesize drybulk carriers, 15 Ultramax drybulk carriers, and twelve Supramax drybulk carriers with an aggregate carrying capacity of approximately 4,636,000 deadweight tons (“dwt”). The average age of our current fleet is approximately 11.0 years.
Our fleet currently consists of 45 drybulk carriers, including 18 Capesize drybulk carriers, 15 Ultramax drybulk carriers, and twelve Supramax drybulk carriers with an aggregate carrying capacity of approximately 4,828,000 deadweight tons (“dwt”). The average age of our current fleet is approximately 11.7 years.
We are a member of P&I Associations, which are members of the International Group.
We are a member of two P&I Associations, both members of the International Group.
Refer to “Capital Expenditures” section for further information. The IMO adopted the International Convention on Civil Liability for Oil Pollution Damage of 1969, as amended by different Protocols in 1976, 1984, and 1992, and amended in 2000 (the “CLC”).
The IMO adopted the International Convention on Civil Liability for Oil Pollution Damage of 1969, as amended by different Protocols in 1976, 1984, and 1992, and amended in 2000 (the “CLC”).
As a result of this strategic shift, we have been fixing an increasing number of vessels on spot market voyage charters, where we provide a vessel for the transportation of goods between a load port and discharge port at a specified per-ton rate or on a lump sum basis, as well as on contracts of affreightment directly with cargo providers.
We fix a significant number of vessels on spot market voyage charters, where we provide a vessel for the transportation of goods between a load port and discharge port at a specified per-ton rate or on a lump sum basis, as well as on contracts of affreightment directly with cargo providers.
Under spot market voyage charters, voyage expenses such as fuel and port charges, are borne by us. Additionally, as of February 21, 2023, we employed 20 of our vessels under fixed-rate time charters and four of our vessels under spot market-related time charters.
Under spot market voyage charters, voyage expenses such as fuel and port charges, are borne by us. Additionally, as of February 27, 2024, we have fixed 20 of our vessels under fixed-rate time charters and five of our vessels under spot market-related time charters.
Under Chapter IX of the SOLAS Convention, or the International Safety Management Code for the Safe Operation of Ships and for Pollution Prevention (the “ISM Code”), our operations are also subject to environmental standards and requirements.
We believe that our vessels are in substantial compliance with SOLAS and LLMC standards. ​ Under Chapter IX of the SOLAS Convention, or the International Safety Management Code for the Safe Operation of Ships and for Pollution Prevention (the “ISM Code”), our operations are also subject to environmental standards and requirements.
MEPC 75 adopted amendments to MARPOL Annex VI which brings forward the effective date of the EEDI’s “phase 3” requirements from January 1, 2025 to April 1, 2022 for several ship types, including gas carriers, general cargo ships, and LNG carriers.
MEPC 75 adopted amendments to MARPOL Annex VI which brings forward the effective date of the EEDI’s “phase 3” requirements from January 1, 2025 to April 1, 2022 for several ship types, including gas carriers, general cargo ships, and LNG carriers. 13 ​ Table of Contents Additionally, MEPC 75 introduced draft amendments to Annex VI which impose new regulations to reduce greenhouse gas emissions from ships.
Additionally, as of February 21, 2023, we were chartering in three third party vessels that have been employed on spot market voyage charters. ​ Our vessels operate worldwide within the trading limits imposed by our insurance terms.
Additionally, as of February 27, 2024, we were chartering in four third party vessels that have been employed on spot market voyage charters, all of which are short duration. ​ Our vessels operate worldwide within the trading limits imposed by our insurance terms.
However, in March 2017, former U.S. President Trump signed an executive order to review and possibly eliminate the EPA’s plan to cut greenhouse gas emissions, and in August 2019, the Administration announced plans to weaken regulations for methane emissions.
President Trump signed an executive order to review and possibly eliminate the EPA’s plan to cut greenhouse gas emissions, and in August 22 ​ Table of Contents 2019, the Administration announced plans to weaken regulations for methane emissions.
Refer to “Capital Expenditures” in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations and “We are subject to regulation and liability under environmental and operational safety laws that could 12 ​ Table of Contents require significant expenditures or subject us to increased liability” in Item 1A.
Refer to “Capital Expenditures” in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations and “We are subject to regulation and liability under environmental and operational safety laws that could require significant expenditures or subject us to increased liability” in Item 1A. Risk Factors for further details of our plan for compliance and potential costs.
Moreover, some states have enacted legislation providing for unlimited liability for discharge of pollutants within their waters, although in some cases, states which have enacted this type of legislation have not yet issued implementing regulations defining vessel owners’ responsibilities under these laws. We intend to comply with all applicable state regulations in the ports where our vessels call.
Moreover, some states have enacted legislation providing for unlimited liability for discharge of pollutants within their waters, although in some cases, states which have enacted this type of legislation have not yet issued implementing regulations defining vessel owners’ responsibilities under these laws.
We compete with other owners of drybulk carriers in the Capesize, Panamax, Ultramax, Supramax and Handysize class sectors, some of whom may also charter our vessels as customers.
We compete with other owners of drybulk carriers in the major and minor bulk sectors, some of whom may also charter our vessels as customers.
Our management team actively monitors and controls vessel operating expenses incurred by GSSM by overseeing their activities. We also seek to maintain low-cost, highly efficient operations by capitalizing on the cost savings and economies of scale that result from operating a larger fleet as well as sister ships.
We also seek to maintain low-cost, highly efficient operations by capitalizing on the cost savings and economies of scale that result from operating a larger fleet as well as sister ships.
While we do not carry oil as cargo, we do carry fuel and lube oil in our drybulk carriers. We currently maintain pollution liability coverage insurance in the amount of $1 billion per incident for each of our vessels.
We intend to comply with all applicable state regulations in the ports where our vessels call. 19 ​ Table of Contents While we do not carry oil as cargo, we do carry fuel and lube oil in our drybulk carriers. We currently maintain pollution liability coverage insurance in the amount of $1 billion per incident for each of our vessels.
The cost of vessel security measures has also been affected by the escalation in the frequency of acts of piracy against ships, notably off the coast of Somalia, including the Gulf of Aden and Arabian Sea area, as well as off the coast of Western Africa.
We intend to comply with the various security measures addressed by MTSA, the SOLAS Convention and the ISPS Code. 23 ​ Table of Contents The cost of vessel security measures has also been affected by the escalation in the frequency of acts of piracy against ships, notably off the coast of Somalia, including the Gulf of Aden and Arabian Sea area, as well as off the coast of Western Africa.
Caribbean Sea ECAs designed for the control of NOx produced by vessels with a marine diesel engine installed and constructed on or after January 1, 2016. Tier III requirements could apply to areas that will be designated for Tier III NOx in the future.
Under the amendments, Tier III NOx standards apply to ships that operate in the North American and U.S. Caribbean Sea ECAs designed for the control of NOx produced by vessels with a marine diesel engine installed and constructed on or after January 1, 2016.
In 2019 and 2020, the agencies repealed the prior WOTUS Rule and promulgated the Navigable Waters Protection Rule (“NWPR”) which significantly reduced the scope and oversight of EPA and the Department of the Army in traditionally non-navigable waterways. On August 30, 2021, a federal district court in Arizona vacated the NWPR and directed the agencies to replace the rule.
In 2019 and 2020, the agencies repealed the prior WOTUS Rule and promulgated the Navigable Waters Protection Rule (“NWPR”) which significantly reduced the scope and oversight of EPA and the Department of the Army in traditionally non-navigable waterways.
On December 23, 2022, the USCG issued a final rule to adjust the limitation of liability under the OPA. Effective March 23, 2022, the new adjusted limits of OPA liability for non-tank vessels, edible oil tank vessels, and any oil spill response vessels, to the greater of $1,300 per gross ton or $1,076,000 (subject to periodic adjustment for inflation).
Effective March 23, 2023, the new adjusted limits of OPA liability for non-tank vessels, edible oil tank vessels, and any oil spill response vessels, to the greater of $1,300 per gross ton or $1,076,000 (subject to periodic adjustment for inflation) (previous limit was $1,200 per gross ton or $997,100).
The amendments will enter into force on May 1, 2024. ​ We may incur costs to comply with these revised standards. Additional or new conventions, laws and regulations may be adopted that could require the installation of expensive emission control systems and could adversely affect our business, results of operations, cash flows and financial condition.
Additional or new conventions, laws and regulations may be adopted that could require the installation of expensive emission control systems and could adversely affect our business, results of operations, cash flows and financial condition.
MEPC 79 also established that ships are expected to return to D-2 compliance after experiencing challenging uptake water and bypassing a BWM system should only be used as a last resort. Guidance will be developed at MEPC 80 (in July 2023) to set out appropriate actions and uniform procedures to ensure compliance with the BWM Convention.
MEPC 79 also established that ships are expected to return to D-2 compliance after experiencing challenging uptake water and bypassing a BWM system should only be used as a last resort.
At MEPC 70 and MEPC 71, the MEPC approved the North Sea and Baltic Sea as ECAs for nitrogen oxide for ships built on or after January 1, 2021.
Tier III requirements could apply to areas that will be designated for Tier III NOx in the future. At MEPC 70 and MEPC 71, the MEPC approved the North Sea and Baltic Sea as ECAs for nitrogen oxide for ships built on or after January 1, 2021.
The Convention of Limitation of Liability for Maritime Claims (the “LLMC”) sets limitations of liability for a loss of life or personal injury claim or a property claim against ship owners. We believe that our vessels are in substantial compliance with SOLAS and LLMC standards.
The Convention of Limitation of Liability for Maritime Claims (the “LLMC”) sets limitations of liability for a loss of life or personal injury claim or a property claim against ship owners.
Additionally, MEPC 75 introduced draft amendments to Annex VI which impose new regulations to reduce greenhouse gas emissions from ships. These amendments introduce requirements to assess and measure the energy efficiency of all ships and set the required attainment values, with the goal of reducing the carbon intensity of international shipping.
These amendments introduce requirements to assess and measure the energy efficiency of all ships and set the required attainment values, with the goal of reducing the carbon intensity of international shipping.
We expect this joint venture to increase visibility and control over our vessel operations, augment fleet-wide fuel efficiency to lower our carbon footprint through an advanced data platform and potentially provide vessel operating expense savings over time.
GSSM currently provides the technical management to all 45 vessels in our current fleet. This joint venture has increased our visibility and control over our vessel operations, augmented fleet-wide fuel efficiency to lower our carbon footprint through an advanced data platform and will potentially provide vessel operating expense savings over time.
In jurisdictions, such as the United States where the CLC or the Bunker Convention has not been adopted, various legislative schemes or common law govern, and liability is imposed either on the basis of fault or on a strict-liability basis. 16 ​ Table of Contents Anti-Fouling Requirements ​ In 2001, the IMO adopted the International Convention on the Control of Harmful Anti-fouling Systems on Ships, or the “Anti-fouling Convention.” The Anti-fouling Convention, which entered into force on September 17, 2008, prohibits the use of organotin compound coatings to prevent the attachment of mollusks and other sea life to the hulls of vessels.
Anti-Fouling Requirements ​ In 2001, the IMO adopted the International Convention on the Control of Harmful Anti-fouling Systems on Ships, or the “Anti-fouling Convention.” The Anti-fouling Convention, which entered into force on September 17, 2008, prohibits the use of organotin compound coatings to prevent the attachment of mollusks and other sea life to the hulls of vessels.
The EU also committed to reduce its emissions by 20% under the Kyoto Protocol’s second period from 2013 to 2020. Starting in January 2018, large ships over 5,000 gross tonnage calling at EU ports are required to collect and publish data on carbon dioxide emissions and other information.
Starting in January 2018, large ships over 5,000 gross tonnage calling at EU ports are required to collect and publish data on carbon dioxide emissions and other information. Under the European Climate Law, the EU committed to reduce its net greenhouse gas emissions by at least 55% by 2030 through its “Fit-for-55” legislation package.
Our customers include national, regional and international companies, such as Rio Tinto Shipping (Asia) Pte. Ltd., Cargill International S.A., BHP, Bunge SA, ADMIntermare, a division of ADM International Sarl, and Vale International S.A.
Our customers include national, regional and international companies, such as Rio Tinto Shipping (Asia) Pte. Ltd., Oldendorff Carriers, including its subsidiaries, Cargill International S.A., BHP, Bunge SA, ADMIntermare, a division of ADM International Sarl, and Vale International S.A. For the year ended December 31, 2023, two customers individually accounted for more than 10% of our voyage revenue.
As of January 2020, EU member states must also ensure that ships in all EU waters, except the SOx-Emission Control are, use fuels with a 0.5% maximum sulfur content. On September 15, 2020, the European Parliament voted to include greenhouse gas emissions from the maritime sector in the European Union’s carbon market, the EU Emissions Trading System (“EU ETS”).
As of January 2020, EU member states must also ensure that ships in all EU waters, except the SOx-Emission Control Area, use fuels with a 0.5% maximum sulfur content.
At the MEPC meeting held from March to April 2014, amendments to Annex VI were adopted which address the date on which Tier III Nitrogen Oxide (NOx) standards in ECAs will go into effect. Under the amendments, Tier III NOx standards apply to ships that operate in the North American and U.S.
Amended Annex VI also establishes new tiers of stringent nitrogen oxide emissions standards for marine diesel engines, depending on their date of installation. At the MEPC meeting held from March to April 2014, amendments to Annex VI were adopted which address the date on which Tier III Nitrogen Oxide (NOx) standards in ECAs will go into effect.
European Union Regulations In October 2009, the European Union amended a directive to impose criminal sanctions for illicit ship-source discharges of polluting substances, including minor discharges, if committed with intent, recklessly or with serious negligence and the discharges individually or in the aggregate result in deterioration of the quality of water.
Coast Guard and state regulations could require the installation of ballast water treatment equipment on our vessels or the implementation of other port facility disposal procedures at potentially substantial cost, or may otherwise restrict our vessels from entering U.S. waters. 20 ​ Table of Contents European Union Regulations In October 2009, the European Union amended a directive to impose criminal sanctions for illicit ship-source discharges of polluting substances, including minor discharges, if committed with intent, recklessly or with serious negligence and the discharges individually or in the aggregate result in deterioration of the quality of water.
However, depending on market conditions, we may seek to enter into additional longer term time charter contracts or contracts of affreightment. In addition to both short and long-term time charters, we fix our vessels on spot market voyage charters as well as spot market-related time charters depending on market conditions and management’s outlook.
However, depending on market conditions, we may seek to enter into additional longer term time charter contracts or contracts of affreightment.
MARPOL establishes environmental standards relating to oil leakage or spilling, garbage management, sewage, air emissions, handling and disposal of noxious liquids 11 ​ Table of Contents and the handling of harmful substances in packaged forms.
MARPOL establishes environmental standards relating to oil leakage or spilling, garbage management, sewage, air emissions, handling and disposal of noxious liquids and the handling of harmful substances in packaged forms. MARPOL is applicable to drybulk, tanker and LNG carriers, among other vessels, and is broken into six Annexes, each of which regulates a different source of pollution.
Compliance Enforcement Noncompliance with the ISM Code or other IMO regulations may subject the ship owner or bareboat charterer to increased liability, may lead to decreases in available insurance coverage for affected vessels and may result in the denial of access to, or detention in, some ports.
These amendments were formally adopted at MEPC 76 in June 2021, and entered into force on January 1, 2023. ​ We have obtained Anti-fouling System Certificates for all of our vessels that are subject to the Anti-fouling Convention. 17 ​ Table of Contents Compliance Enforcement Noncompliance with the ISM Code or other IMO regulations may subject the ship owner or bareboat charterer to increased liability, may lead to decreases in available insurance coverage for affected vessels and may result in the denial of access to, or detention in, some ports.
Since the fourth quarter of 2021 through the fourth quarter of 2022, we have declared cumulative dividends under our value strategy of $3.24 per share. ​ In line with our value strategy, we will continue to focus on the following specific priorities for 2023: ​ ● Pay attractive dividends to shareholders 2 ​ Table of Contents ● Continue to pay down debt through voluntary prepayments from a combination of cash flow generation and cash on our balance sheet; and ● Opportunistically grow the fleet on a low levered basis ​ Our Operations ​ We report financial information and evaluate our operations by charter revenues and not by the length of ship employment for our customers, i.e., spot or time charters.
Furthermore, since the fourth quarter of 2021 through the fourth quarter of 2023, we have declared cumulative dividends under our value strategy of $4.10 per share. 2 ​ Table of Contents ​ Our Operations ​ We report financial information and evaluate our operations by charter revenues and not by the length of ship employment for our customers, i.e., spot or time charters.
Ships which are not affected (i.e. with anti-fouling systems which do not contain cybutryne) must receive an updated IAFS Certificate at the next Anti-fouling application to the vessel. These amendments were formally adopted at MEPC 76 in June 2021. ​ We have obtained Anti-fouling System Certificates for all of our vessels that are subject to the Anti-fouling Convention.
Ships which are not affected (i.e. with anti-fouling systems which do not contain cybutryne) must receive an updated IAFS Certificate at the next Anti-fouling application to the vessel.
As noted above, regulations relating to the inclusion of greenhouse gas emissions from the maritime sector in the European Union’s carbon market, EU ETS, are also forthcoming.. 21 ​ Table of Contents In the United States, the EPA issued a finding that greenhouse gases endanger the public health and safety, adopted regulations to limit greenhouse gas emissions from certain mobile sources, and proposed regulations to limit greenhouse gas emissions from large stationary sources.
In the United States, the EPA issued a finding that greenhouse gases endanger the public health and safety, adopted regulations to limit greenhouse gas emissions from certain mobile sources, and proposed regulations to limit greenhouse gas emissions from large stationary sources. However, in March 2017, former U.S.
If other ECAs are approved by the IMO, or other new or more stringent requirements relating to emissions from marine diesel engines or port operations by vessels are adopted by the U.S. Environmental Protection Agency (“EPA”) or the states where we operate, compliance with these regulations could entail significant capital expenditures or otherwise increase the costs of our operations.
Environmental Protection Agency (“EPA”) or the states where we operate, compliance with these regulations could entail significant capital expenditures or otherwise increase the costs of our operations.
After the installation of these ballast water treatment systems, all of our vessels will be in compliance with these standards. Once mid-ocean ballast exchange ballast water treatment requirements become mandatory under the BWM Convention, the cost of compliance could increase for ocean carriers and may have a material effect on our operations.
Once mid-ocean exchange ballast water treatment requirements become mandatory under the BWM Convention, the cost of compliance could increase for ocean carriers and may have a material effect on our operations. However, many countries already regulate the discharge of ballast water carried by vessels from country to country to prevent the introduction of invasive and harmful species via such discharges.
These actions have enabled us to further reduce our cash flow breakeven rate positioning us to pay sizeable quarterly dividends across diverse market environments.
This has resulted in a debt balance of $200.0 million as of December 31, 2023, a 55% reduction from January 1, 2021 levels. These actions have enabled us to further reduce our cash flow breakeven rate positioning us to pay sizeable quarterly dividends across diverse market environments.
We are covered, subject to limitations in our policy, to have the crew released in the case of kidnapping due to piracy in the Gulf of Aden off the coast of Somalia and the Gulf of Guinea. ​ Protection and Indemnity Insurance ​ Protection and indemnity insurance is provided by mutual protection and indemnity associations, or P&I Associations, which insure our third party liabilities in connection with our shipping activities.
We are covered, subject to limitations in our policy, to have the crew released in the case of kidnapping due to piracy in the Gulf of Aden off the coast of Somalia and the Gulf of Guinea. Currently, we have no ships in the southern Red Sea or Gulf of Aden region.
For the year ended December 31, 2022, no customer accounted for more than 10% of our voyage revenue. ​ COMPETITION ​ Our business fluctuates in line with the main patterns of trade of the major drybulk cargoes and varies according to changes in the supply and demand for these items.
Rio Tinto Shipping (Asia) Pte. Ltd. and Oldendorff Carriers, including its subsidiaries, represented 16.1% and 10.9% of voyage revenues, respectively. ​ COMPETITION ​ Our business fluctuates in line with the main patterns of trade of the major drybulk cargoes and varies according to changes in the supply and demand for these items.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThe scope or intensity of the ongoing military conflict as well as sanctions and other actions undertaken in response to it could increase, potentially having negative effects on the global economy and markets.
Biggest changeThe scope or intensity of the ongoing military conflict as well as sanctions and other actions undertaken in response to it could increase, potentially having negative effects on the global economy and markets. ​ Since the Black Sea Grain Initiative was established on July 27, 2022 to allow for the export of grain from Ukrainian ports while the war in Ukraine continues, a total of approximately 33 million metric tons of grain were exported from three Ukrainian ports under this agreement, of which nearly 80% has been corn and wheat cargoes.
As a result, our revenues could be weaker during the fiscal quarters ended June 30 and September 30, and conversely, our revenue could be stronger during the quarters ended December 31 and March 31.
As a result, our revenues could be weaker during the fiscal quarters ended March 31 and June 30, and conversely, our revenue could be stronger during the quarters ended September 30 and December 31.
If, however, Genco's shipping income does not qualify for the Section 883 exemption, and assuming that any gain derived from the sale of a vessel is attributable to Genco's U.S. office, as Genco believes would likely be the case, such gain would likely be treated as effectively connected income (determined under rules different from those discussed above) and subject to the net income and branch profits tax regime described above. ​ U.S. tax authorities could treat us as a “passive foreign investment company,” which could have adverse U.S. federal income tax consequences to U.S. shareholders. ​ A foreign corporation generally will be treated as a “passive foreign investment company,” which we sometimes refer to as a PFIC, for U.S. federal income tax purposes if, after applying certain look through rules, either (1) at least 75% of its gross income for any taxable year consists of “passive income” or (2) at least 50% of the average value or adjusted bases of its assets (determined on a quarterly basis) produce or are held for the production of passive income, i.e., “passive assets.” U.S. shareholders of a PFIC are subject to a disadvantageous U.S. federal income tax 35 ​ Table of Contents regime with respect to distributions they receive from the PFIC and gain, if any, they derive from the sale or other disposition of their stock in the PFIC. ​ For purposes of these tests, “passive income” generally includes dividends, interest, gains from the sale or exchange of investment property and rents and royalties other than rents and royalties which are received from unrelated parties in connection with the active conduct of a trade or business, as defined in applicable Treasury Regulations.
If, however, Genco’s shipping income does not qualify for the Section 883 exemption, and assuming that any gain derived from the sale of a vessel is attributable to Genco’s U.S. office, as Genco believes would likely be the case, such gain would likely be treated as effectively connected income (determined under rules different from those discussed above) and subject to the net income and branch profits tax regime described above. ​ U.S. tax authorities could treat us as a “passive foreign investment company,” which could have adverse U.S. federal income tax consequences to U.S. shareholders. ​ A foreign corporation generally will be treated as a “passive foreign investment company,” which we sometimes refer to as a PFIC, for U.S. federal income tax purposes if, after applying certain look through rules, either (1) at least 75% of its gross income for any taxable year consists of “passive income” or (2) at least 50% of the average value or adjusted bases of its assets (determined on a quarterly basis) produce or are held for the production of passive income, i.e., “passive assets.” U.S. shareholders of a PFIC are subject to a disadvantageous U.S. federal income tax regime with respect to distributions they receive from the PFIC and gain, if any, they derive from the sale or other disposition of their stock in the PFIC. ​ For purposes of these tests, “passive income” generally includes dividends, interest, gains from the sale or exchange of investment property and rents and royalties other than rents and royalties which are received from unrelated parties in connection with the active conduct of a trade or business, as defined in applicable Treasury Regulations.
The date of redelivery of vessels and fluctuations in the price and supply of fuel are unpredictable, and therefore, these arrangements could result in losses or reductions in working capital that are beyond our control. ​ As part of our approach to comply with IMO regulations that limit sulfur emissions, we retrofitted our 17 Capesize vessels with scrubbers.
The date of redelivery of vessels and fluctuations in the price and supply of fuel are unpredictable, and therefore, these arrangements could result in losses or reductions in working capital that are beyond our control. ​ As part of our approach to comply with IMO regulations that limit sulfur emissions, we retrofitted our Capesize vessels with scrubbers.
Moreover, to the extent the Chinese government does not pursue economic growth and urbanization generally, including infrastructure stimulus spending, the level of imports to and exports from China could be adversely affected, as well as by changes in political, economic and social conditions or other Chinese government policies.
To the extent the Chinese government does not pursue economic growth and urbanization generally, including infrastructure stimulus spending, the level of imports to and exports from China could be adversely affected, as well as by changes in political, economic and social conditions or other Chinese government policies.
While international shipping income may be exempt from some or all of the provisions included in the agreement, the impact of these provisions is uncertain and may not become evident for some period of time. ​ RISK FACTORS RELATED TO OUR COMMON STOCK ​ Because we are a foreign corporation, you may not have the same rights or protections that a shareholder in a U.S. corporation may have. ​ We are incorporated in the Republic of the Marshall Islands, which does not have a well-developed body of corporate law and may make it more difficult for our shareholders to protect their interests.
While certain international shipping income is exempt from some or all of the provisions included in the agreement, the impact of these provisions is uncertain and may not become evident for some period of time. ​ RISK FACTORS RELATED TO OUR COMMON STOCK ​ Because we are a foreign corporation, you may not have the same rights or protections that a shareholder in a U.S. corporation may have. ​ We are incorporated in the Republic of the Marshall Islands, which does not have a well-developed body of corporate law and may make it more difficult for our shareholders to protect their interests.
Under the PFIC rules, unless a shareholder makes certain elections available under the Code (which elections could themselves have adverse consequences for such shareholder), such shareholder would be liable to pay U.S. federal income tax at the highest applicable ordinary income tax rates upon the receipt of excess distributions and upon any gain from the disposition of our common stock, plus interest on such amounts, as if such excess distribution or gain had been recognized ratably over the shareholder’s holding period of our common stock. ​ Because we generate all of our revenues in U.S. dollars but incur a portion of our expenses in other currencies, exchange rate fluctuations could hurt our business. ​ We generate all of our revenues in U.S. dollars, but we may incur drydocking costs, voyage expenses (such as port costs), special survey fees and other expenses in other currencies.
Under the PFIC rules, 36 ​ Table of Contents unless a shareholder makes certain elections available under the Code (which elections could themselves have adverse consequences for such shareholder), such shareholder would be liable to pay U.S. federal income tax at the highest applicable ordinary income tax rates upon the receipt of excess distributions and upon any gain from the disposition of our common stock, plus interest on such amounts, as if such excess distribution or gain had been recognized ratably over the shareholder’s holding period of our common stock. ​ Because we generate all of our revenues in U.S. dollars but incur a portion of our expenses in other currencies, exchange rate fluctuations could hurt our business. ​ We generate all of our revenues in U.S. dollars, but we may incur drydocking costs, voyage expenses (such as port costs), special survey fees and other expenses in other currencies.
Shipping income is generally sourced 100% to the U.S. if attributable to transportation exclusively between U.S. ports (Genco is prohibited from conducting such voyages), 50% to the U.S. if attributable to transportation that begins or ends, but does not both begin and end, in the U.S. and otherwise 0% to the U.S. ​ Genco's U.S. source shipping income would be considered effectively connected income only if (i) Genco has, or is considered to have, a fixed place of business in the U.S. involved in the earning of U.S. source shipping income; and (ii) substantially all of Genco's U.S. source shipping income is attributable to regularly scheduled transportation, such as the operation of a vessel that follows a published schedule with repeated sailings at regular intervals between the same points for voyages that begin or end in the U.S. ​ Genco does not intend to have, or permit circumstances that would result in having, any vessel sailing to or from the U.S. on a regularly scheduled basis.
Shipping income is generally sourced 100% to the U.S. if attributable to transportation exclusively between U.S. ports (Genco is prohibited from conducting such voyages), 50% to the U.S. if attributable to transportation that begins or ends, but does not both begin and end, in the U.S. and otherwise 0% to the U.S. ​ Genco’s U.S. source shipping income would be considered effectively connected income only if (i) Genco has, 35 ​ Table of Contents or is considered to have, a fixed place of business in the U.S. involved in the earning of U.S. source shipping income; and (ii) substantially all of Genco’s U.S. source shipping income is attributable to regularly scheduled transportation, such as the operation of a vessel that follows a published schedule with repeated sailings at regular intervals between the same points for voyages that begin or end in the U.S. ​ Genco does not intend to have, or permit circumstances that would result in having, any vessel sailing to or from the U.S. on a regularly scheduled basis.
Competitors with greater resources could enter and operate larger and better fleets that offer better prices than ours. ​ Future dividends are subject to the discretion of our Board of Directors; dividends and share repurchases are limited under our credit facility. ​ Our declaration and payment of dividends is subject to legally available funds, compliance with law and contractual obligations and our Board of Directors’ determination that each declaration and payment is in the best interest of the Company and our shareholders.
Competitors with greater resources could enter and operate larger and better fleets that offer better prices than ours. ​ Future dividends are subject to the discretion of our Board of Directors; dividends and share repurchases are subject to covenant compliance under our credit facility. ​ Our declaration and payment of dividends is subject to legally available funds, compliance with law and contractual obligations and our Board of Directors’ determination that each declaration and payment is in the best interest of the Company and our shareholders.
As a result, regulations and standards could have a material adverse effect on our business, results of operations, cash flows, financial condition, and ability to pay dividends. ​ An increase in interest rates could adversely affect our cash flow and financial condition. ​ We are subject to market risks relating to changes in LIBOR rates because we have significant amounts of floating rate debt outstanding.
As a result, regulations and standards could have a material adverse effect on our business, results of operations, cash flows, financial condition, and ability to pay dividends. ​ An increase in interest rates could adversely affect our cash flow and financial condition. ​ We are subject to market risks relating to changes in SOFR rates because we have significant amounts of floating rate debt outstanding.
A foreign corporation satisfies the CFC test if it is a “controlled foreign corporation” and one or more qualified U.S. persons own more than 50% of the total value of all the outstanding stock. ​ Based on the ownership and trading of our stock in 2022 and 2021, we believe that we satisfied the publicly traded test and qualified for the Section 883 exemption in 2022 and 2021.
A foreign corporation satisfies the CFC test if it is a “controlled foreign corporation” and one or more qualified U.S. persons own more than 50% of the total value of all the outstanding stock. ​ Based on the ownership and trading of our stock in 2023 and 2022, we believe that we satisfied the publicly traded test and qualified for the Section 883 exemption in 2023 and 2022.
If we were to lose any of our major customers or if any of them significantly reduced use of our services or were unable to make payments to us, it could have a material adverse effect on our business, results of operations, cash flows, financial condition, and ability to pay dividends. ​ The aging of our fleet and our practice of purchasing and operating previously owned vessels may result in increased operating costs and vessels off-hire, which could adversely affect our earnings. ​ The majority of our drybulk carriers were previously owned by third parties.
If we were to lose any of our major customers or if any of them significantly reduced use of our services or were unable to make payments to us, it could have a material adverse effect on our business, results of operations, cash flows, financial condition, and ability to pay dividends. ​ 32 ​ Table of Contents The aging of our fleet and our practice of purchasing and operating previously owned vessels may result in increased operating costs and vessels off-hire, which could adversely affect our earnings. ​ The majority of our drybulk carriers were previously owned by third parties.
We cannot predict the effect that future sales of common stock or other equity-related securities would have on the market price of our common stock. ​ We may need to raise additional capital in the future, which may not be available on favorable terms or at all or which may dilute our common stock or adversely affect its market price. ​ We may require additional capital to expand our business and increase revenues, add liquidity in response to negative economic conditions, meet unexpected liquidity needs, and reduce our outstanding debt.
We cannot predict the effect that future sales of common stock or other equity-related securities would have on the market price of our common stock. ​ 37 ​ Table of Contents We may need to raise additional capital in the future, which may not be available on favorable terms or at all or which may dilute our common stock or adversely affect its market price. ​ We may require additional capital to expand our business and increase revenues, add liquidity in response to negative economic conditions, meet unexpected liquidity needs, and reduce our outstanding debt.
A decrease in the market price of our common stock would adversely impact the value of your shares of common stock. ​ 37 ​ Table of Contents Provisions of our articles of incorporation and by-laws may have anti-takeover effects which could adversely affect the market price of our common stock. ​ Several provisions of our articles of incorporation and by-laws are intended to avoid costly takeover battles, lessen our vulnerability to a hostile change of control and enhance the ability of our Board of Directors to maximize shareholder value in connection with any unsolicited offer to acquire our company.
A decrease in the market price of our common stock would adversely impact the value of your shares of common stock. ​ Provisions of our articles of incorporation and by-laws may have anti-takeover effects which could adversely affect the market price of our common stock. ​ Several provisions of our articles of incorporation and by-laws are intended to avoid costly takeover battles, lessen our vulnerability to a hostile change of control and enhance the ability of our Board of Directors to maximize shareholder value in connection with any unsolicited offer to acquire our company.
Under applicable Treasury 34 ​ Table of Contents Regulations, the publicly-traded test cannot be satisfied in any taxable year in which persons who actually or constructively own 5% or more of our stock (which we sometimes refer to as “5% shareholders”), together own 50% or more of our stock (by vote and value) for more than half the days in such year (the “five percent override rule”), unless an exception applies.
Under applicable Treasury Regulations, the publicly-traded test cannot be satisfied in any taxable year in which persons who actually or constructively own 5% or more of our stock (which we sometimes refer to as “5% shareholders”), together own 50% or more of our stock (by vote and value) for more than half the days in such year (the “five percent override rule”), unless an exception applies.
However, on such customers’ instructions, our vessels could call on ports in countries subject to 28 ​ Table of Contents sanctions or embargoes imposed by the U.S. government or countries identified by the U.S. government as state sponsors of terrorism, such as Iran, Sudan and Syria.
However, on such customers’ instructions, our vessels could call on ports in countries subject to 29 ​ Table of Contents sanctions or embargoes imposed by the U.S. government or countries identified by the U.S. government as state sponsors of terrorism, such as Iran, Sudan and Syria.
This seasonality could have a material adverse effect on our business, results of operations, cash flows, financial condition and ability to pay dividends. ​ 30 ​ Table of Contents Company Specific Risk Factors ​ Our earnings and our ability to pay dividends will be adversely affected if we do not successfully employ our vessels. ​ The charterhire rates for our vessels have sometimes declined below the operating costs of our vessels.
This seasonality could have a material adverse effect on our business, results of operations, cash flows, financial condition and ability to pay dividends. ​ Company Specific Risk Factors ​ Our earnings and our ability to pay dividends will be adversely affected if we do not successfully employ our vessels. ​ The charterhire rates for our vessels have sometimes declined below the operating costs of our vessels.
Factors that influence demand include 24 ​ Table of Contents demand for and production of drybulk products; global and regional economic and political conditions, including developments in international trade, fluctuations in industrial and agricultural production and armed conflicts; the distance drybulk cargo is to be moved by sea; environmental and other regulatory developments; events impacting production of the commodities that we carry; and changes in seaborne and other transportation patterns.
Factors that influence demand include demand for and production of drybulk products; global and regional economic and political conditions, including developments in international trade, fluctuations in industrial and agricultural production and armed conflicts; the distance drybulk cargo is to be moved by sea; environmental and other regulatory developments; events impacting production of the commodities that we carry; and changes in seaborne and other transportation patterns.
These provisions may impede a shareholder’s ability to bring matters before or nominate directors at an annual meeting of shareholders. ​ It may not be possible for our investors to enforce U.S. judgments against us. ​ We and most of our subsidiaries are organized in the Marshall Islands.
These provisions may impede a shareholder’s ability to bring matters before or nominate directors at an annual meeting of shareholders. ​ 38 ​ Table of Contents It may not be possible for our investors to enforce U.S. judgments against us. ​ We and most of our subsidiaries are organized in the Marshall Islands.
These limitations place restrictions on financing that we could use for our growth. ​ We currently maintain all of our cash and cash equivalents with six financial institutions, which causes credit risk. ​ We currently maintain all of our cash and cash equivalents with six financial institutions.
These limitations place restrictions on financing that we could use for our growth. ​ We currently maintain all of our cash and cash equivalents with eight financial institutions, which causes credit risk. ​ We currently maintain all of our cash and cash equivalents with eight financial institutions.
Claims submitted to the association may include those incurred by members of the association, as well as claims submitted to the association from other P&I associations with which our P&I association has entered into interassociation agreements.
Claims submitted to the Association may include those incurred by members of the Association, as well as claims submitted to the Association from other P&I Associations with which our P&I Association has entered into inter-association agreements.
As a result of any of these circumstances, we may experience a material adverse effect on our business, results of operations, cash flows, financial condition, and ability to pay dividends. ​ In addition, while we try to capture arbitrage opportunities by taking cargo positions, a significant fluctuation in the rate environment could adversely affect profitability. ​ We may face liquidity issues if conditions in the drybulk market worsen for a prolonged period. ​ While supply and demand fundamentals have improved starting in 2017, if the market environment declines over a prolonged period of time, we may have insufficient liquidity to fund ongoing operations or satisfy our obligations under our credit facility, which may lead to a default under our credit facility.
As a result of any of these circumstances, we may experience a material adverse effect on our business, results of operations, cash flows, financial condition, and ability to pay dividends. ​ In addition, while we try to capture arbitrage opportunities by taking cargo positions, a significant fluctuation in the rate environment could adversely affect profitability. ​ We may face liquidity issues if conditions in the drybulk market worsen for a prolonged period. ​ If the drybulk market environment declines over a prolonged period of time, we may have insufficient liquidity to fund ongoing operations or satisfy our obligations under our credit facility, which may lead to a default under our credit facility.
A P&I association provides mutual insurance based on the aggregate tonnage of a member’s vessels entered into the association. Claims are paid through the aggregate premiums of all members, although members remain subject to calls for additional funds if the aggregate premiums are insufficient to cover claims submitted to the association.
A 34 ​ Table of Contents P&I Association provides mutual insurance based on the aggregate tonnage of a member’s vessels entered into the Association. Claims are paid through the aggregate premiums of all members, although members remain subject to calls for additional funds if the aggregate premiums are insufficient to cover claims submitted to the Association.
Any dividend or stock repurchase is subject to the discretion of our Board of Directors. The principal business factors that our Board of Directors expects to consider when determining the timing and amount of dividend payments or stock repurchases include our earnings, financial condition, and cash requirements at the time.
Any dividend or stock repurchase is subject to the discretion of our Board 33 ​ Table of Contents of Directors. The principal business factors that our Board of Directors expects to consider when determining the timing and amount of dividend payments or stock repurchases include our earnings, financial condition, and cash requirements at the time.
Because we currently charter most of our vessels on spot market voyage charters, we are exposed to the cyclicality and volatility of the spot charter market, and we do not have significant long-term, fixed-rate time charters to ameliorate the adverse effects of downturns in the spot market.
Because 31 ​ Table of Contents we currently charter most of our vessels on spot market voyage charters, we are exposed to the cyclicality and volatility of the spot charter market, and we do not have significant long-term, fixed-rate time charters to ameliorate the adverse effects of downturns in the spot market.
If LIBOR or any alternative reference rate were to increase significantly, the amount of interest payable on our outstanding indebtedness could increase significantly and could have a material adverse effect on our business, results of operations, cash flows, financial condition, and ability to pay dividends. ​ We depend significantly on our GSSM joint venture for technical management of our fleet. 32 ​ Table of Contents ​ We formed the GSSM joint venture for technical management of our fleet, including fulfilling the functions of crewing, maintenance and repair services.
If SOFR or any alternative reference rate were to increase significantly, the amount of interest payable on our outstanding indebtedness could increase significantly and could have a material adverse effect on our business, results of operations, cash flows, financial condition, and ability to pay dividends. ​ We depend significantly on our GSSM joint venture for technical management of our fleet. ​ We formed the GSSM joint venture for technical management of our fleet, including fulfilling the functions of crewing, maintenance and repair services.
Moreover, if these piracy attacks result in regions characterized by insurers as “war risk” zones, or Joint War Committee (JWC) “war and strikes” listed areas, premiums payable for such coverage could increase 27 ​ Table of Contents significantly and such insurance coverage may be more difficult to obtain, if available at all.
Moreover, if these piracy attacks result in regions characterized by insurers as “war risk” zones, or Joint War Committee (JWC) “war and strikes” listed areas, premiums payable for such coverage could increase significantly and such insurance coverage may be more difficult to obtain, if available at all.
Continuation of these types of conditions for a prolonged period may leave us with insufficient cash resources for our operations or required debt repayments under our credit facility, which would potentially accelerate the repayment of our outstanding indebtedness. ​ If our earnings and cash flows decline for a prolonged period, we may also breach one or more of our credit facility covenants, such as those relating to our minimum cash balance, collateral maintenance, or minimum working capital.
Continuation of these types of conditions for a prolonged period may leave us with insufficient cash resources for our operations or would potentially accelerate the repayment of our outstanding indebtedness. ​ If our earnings and cash flows decline for a prolonged period, we may also breach one or more of our credit facility covenants, such as those relating to our minimum cash balance, collateral maintenance, or minimum working capital.
As a result, our ability to satisfy our financial obligations and to pay dividends depends on the ability of 33 ​ Table of Contents our subsidiaries, which are all directly or indirectly wholly owned, to distribute funds to us.
As a result, our ability to satisfy our financial obligations and to pay dividends depends on the ability of our subsidiaries, which are all directly or indirectly wholly owned, to distribute funds to us.
Such changes could also impose additional costs and obligations on our customers and may render the shipment of certain types of cargo uneconomical or impractical.
Such changes could also impose additional costs and obligations on our customers and may render the shipment of certain types of cargo uneconomical 27 ​ Table of Contents or impractical.
The recoverable amount of vessels is reviewed based on events and changes in circumstances that would indicate that the carrying amount of the assets might not be recovered.
The recoverable amounts of vessels are reviewed based on events and changes in circumstances that would indicate that the carrying amount of the assets might not be recovered.
During the year ended December 31, 2022, we have experienced increased costs for crew, spares, and stores, which we currently expect to continue into 2023.
During the year ended December 31, 2023, we experienced increased costs for crew, spares, and stores, which we currently expect to continue into 2024.
These factors include our ability to identify vessels for acquisition; consummate acquisitions or establish joint ventures on favorable terms; integrate acquired vessels successfully with our existing operations; expand our customer base; and obtain required financing for our existing and new operations. As of December 31, 2022, we had $212.9 million of availability under our credit facility.
These factors include our ability to identify vessels for acquisition; consummate acquisitions or establish joint ventures on favorable terms; integrate acquired vessels successfully with our existing operations; expand our customer base; and obtain required financing for our existing and new operations. As of December 31, 2023, we had $294.8 million of availability under our credit facility.
The loss of any significant customers could adversely affect our financial performance. 31 ​ Table of Contents ​ For the year ended December 31, 2022, approximately 39% of our revenues were derived from ten charterers. While we are seeking to expand customer relationships with cargo providers, this may not sufficiently diversify our customer base to mitigate this risk.
The loss of any significant customers could adversely affect our financial performance. ​ For the year ended December 31, 2023, approximately 48% of our revenues were derived from ten charterers. While we are seeking to expand customer relationships with cargo providers, this may not sufficiently diversify our customer base to mitigate this risk.
Any of the foregoing could have a material adverse effect on our business, results of operations, cash flows, financial condition and ability to pay dividends. ​ Our vessels may suffer damage, resulting in unexpected drydocking costs. ​ If our vessels suffer damage, they may need to be repaired at a drydocking facility for substantial and unpredictable costs that may not be fully covered by insurance.
Any such changes or developments may have a material adverse effect on our business, results of operations, cash flows, financial condition and ability to pay dividends. ​ Our vessels may suffer damage, resulting in unexpected drydocking costs. ​ If our vessels suffer damage, they may need to be repaired at a drydocking facility for substantial and unpredictable costs that may not be fully covered by insurance.
In addition, Genco may be subject to a 30% "branch profits" tax on such income, and on certain interest paid or deemed paid attributable to the conduct of such trade or business.
In addition, Genco may be subject to a 30% “branch profits” tax on such income, and on certain interest paid or deemed paid attributable to the conduct of such trade or business.
There can be no assurance that the drybulk charter market will not experience future downturns. ​ Shipping capacity supply and demand strongly influences freight rates.
There can be no assurance that the drybulk charter market will not experience future downturns. 25 ​ Table of Contents ​ Shipping capacity supply and demand strongly influences freight rates.
We can provide no assurance that changes and shifts in the ownership of our stock by 5% shareholders will not preclude us from qualifying for the Section 883 exemption in 2023 or future taxable years. In fact, we did not qualify for the Section 883 exemption in 2017.
We can provide no assurance that changes and shifts in the ownership of our stock by 5% shareholders will not preclude us from qualifying for the Section 883 exemption in 2024 or future taxable years.
The Baltic Dry Index (“BDI”), an index published by The Baltic Exchange of shipping rates for key drybulk routes increased during 2021 after a decline in 2020 principally caused by the COVID-19 pandemic, while another firm year was seen in 2022.
The Baltic Dry Index (“BDI”), an index published by The Baltic Exchange of shipping rates for key drybulk routes increased during 2021 after a decline in 2020 principally caused by the COVID-19 pandemic, while another firm year was seen in 2022. In 2023, the BDI declined from 2021 and 2022 highs, but was firm from a historical perspective.
U.S. officials have also warned of the increased possibility of Russian cyberattacks, which could disrupt the operations of businesses involved in the drybulk industry, including ours. As a reaction to higher energy prices, China has chosen to increase domestic coal production as a way to bolster energy security.
U.S. officials have also warned of the increased possibility of Russian cyberattacks, which could disrupt the 28 ​ Table of Contents operations of businesses involved in the drybulk industry, including ours. As a reaction to the war, China has increased domestic coal production as well as their imports of the commodity as a way to bolster energy security.
While the United States has signed the agreement, the Marshall Islands is not among the signatories. The agreement would also reallocate certain taxing rights over multinational enterprises from their home countries to the markets where they have business activities and earn profits—regardless of whether the multinational enterprises have a 36 ​ Table of Contents physical presence in such markets.
The agreement would also reallocate certain taxing rights over multinational enterprises from their home countries to the markets where they have business activities and earn profits—regardless of whether the multinational enterprises have a physical presence in such markets.
The occurrence of any of any of the foregoing could have a material adverse impact on our business, results of operations, cash flows, financial condition, and ability to pay dividends. ​ Acts of war, terrorist attacks, and other acts of violence may have an adverse effect on our business. ​ On February 24, 2022, Russia invaded Ukraine leading to what is now a multi-month war and a humanitarian crisis.
Any of the foregoing could have a material adverse impact on our business, results of operation, financial condition, and ability to pay dividends. ​ On February 24, 2022, Russia invaded Ukraine leading to what is now a multi-year war and a continued humanitarian crisis.
To the extent our vessels are found with contraband, whether inside or attached to the hull and regardless of our crew’s knowledge, we may face governmental or other regulatory claims, which could have an adverse effect on our business, results of operations, cash flows, financial condition, and ability to pay dividends. ​ Arrests of our vessels by maritime claimants could cause a significant loss of earnings for the related off-hire period. ​ Crew members, suppliers of goods and services to a vessel, shippers of cargo and other parties may be entitled to a maritime lien against a vessel for unsatisfied debts, claims or damages.
Any inability that GSSM or we experience in the future to hire, train and retain a sufficient number of qualified employees could impair our ability to manage, maintain and grow our business, which could have a material adverse effect on our business, results of operations, cash flows, financial condition, and ability to pay dividends. ​ Arrests of our vessels by maritime claimants could cause a significant loss of earnings for the related off-hire period. ​ Crew members, suppliers of goods and services to a vessel, shippers of cargo and other parties may be entitled to a maritime lien against a vessel for unsatisfied debts, claims or damages.
Any such changes or developments may have a material adverse effect on our business, results of operations, cash flows, financial condition and ability to pay dividends. ​ 26 ​ Table of Contents Our vessels are exposed to international risks that could reduce revenue or increase expenses. ​ Our vessels are at risk of damage or loss because of events such as mechanical failure, collision, human error, war, terrorism, piracy, cargo loss and bad weather.
Inflation may also raise our costs of capital and decrease our purchasing power, making it more difficult to maintain sufficient funds to operate our business. ​ 26 ​ Table of Contents Our vessels are exposed to international risks that could reduce revenue or increase expenses. ​ Our vessels are at risk of damage or loss because of events such as mechanical failure, collision, human error, war, terrorism, piracy, cargo loss and bad weather.
In addition, in jurisdictions where the “sister ship” theory of liability applies, a claimant may arrest the vessel subject to the claimant’s maritime lien and any associated vessel, which is any vessel owned or controlled by the same owner. 29 ​ Table of Contents ​ Governments could requisition our vessels during a period of war or emergency, resulting in loss of earnings. ​ A government of a vessel’s registry could requisition for title or seize our vessels.
In addition, in jurisdictions where the “sister ship” theory of liability applies, a claimant may arrest the vessel subject to the claimant’s maritime lien and any associated vessel, which is any vessel owned or controlled by the same owner. ​ Labor interruptions could disrupt our business. ​ Our vessels are manned by masters, officers and crews employed by third parties.
If we do not satisfy the collateral maintenance requirement, we will need to post additional collateral or prepay outstanding loans to bring us back into compliance or seek waivers, which may not be available or may be subject to conditions. ​ We are subject to regulation and liability under environmental and operational safety laws that could require significant expenditures or subject us to increased liability . ​ Governments regulate our business and vessel operations through international conventions and national, state and local laws and regulations.
No seafarers aboard the vessel were injured, and the damage to the vessel was limited. ​ We are subject to regulation and liability under environmental and operational safety laws that could require significant expenditures or subject us to increased liability . ​ Governments regulate our business and vessel operations through international conventions and national, state and local laws and regulations.
We cannot predict the outcome of any specific legislative proposals. ​ For example, on October 8, 2021, the Organisation for Economic Cooperation and Development (OECD) announced that 136 countries and jurisdictions—of the 140 members of the OECD/G20 Inclusive Framework on base erosion and profit shifting—have agreed on a framework to subject certain multinational enterprises to a minimum 15% tax rate.
We cannot predict the outcome of any specific legislative proposals. ​ For example, on November 15, 2023, the Organisation for Economic Cooperation and Development (OECD) announced that 145 countries and jurisdictions had signed on as members of the OECD/G20 Inclusive Framework on base erosion and profit shifting, which issued an outcome statement on July 11, 2023 describing a two-pillar framework to address the tax challenges arising from the digitalization of the economy.
To the extent we cannot operate scrubbers on our vessels, we would no longer be able to recover our investment in scrubbers and would have to use low sulfur fuel instead. Low sulfur fuel, which we currently use in our minor bulk fleet is more expensive than standard marine fuel.
These restrictions could become more restrictive or widespread, and we may be further limited in or prevented from operating scrubbers on our vessels as a result. To the extent we cannot operate scrubbers on our vessels, we would no longer be able to recover our investment in scrubbers and would have to use low sulfur fuel instead.
The impact to date on the drybulk market has been a redirection of cargo flows, higher commodity prices, slower vessels speeds due to increased fuel prices, a rush to secure commodities given the tightness in the global energy complex as well as global grain supplies, and sanctions on various Russian exports.
The impact on the drybulk market has been a redirection of cargo flows, volatile commodity prices, a greater emphasis on energy and food security and sanctions on various Russian exports.
Any of these occurrences, or the continuation or worsening of any such occurrences, could have a material adverse impact on our business, results of operation, financial condition, and ability to pay dividends. ​ In addition, terrorist attacks continue to cause uncertainty in the world’s financial markets and may affect our business.
The occurrence of any of any of the foregoing could have a material adverse impact on our business, results of operations, cash flows, financial condition, and ability to pay dividends. ​ Acts of war, terrorist attacks, and other acts of violence may have an adverse effect on our business. ​ Acts of war, terrorism, or other forms of violence may result in lower trading volumes, decreased demand for drybulk cargo, or damage to or destruction of our vessels.
Removed
While China has relaxed its “zero tolerance” policy toward COVID-19, the Chinese government could reimpose stricter measures against COVID-19, which could have a negative effect on Chinese economic activity.
Added
Given the current state of the Chinese property sector, the Chinese government has continued to attempt to stimulate the economy to achieve economic growth targets. China’s property market remains a key sector driving commodity demand for various cargoes that we ship.
Removed
Inflation may also raise our costs of capital and decrease our purchasing power, making it more difficult to maintain sufficient funds to operate our business. ​ The COVID-19 pandemic and measures to contain its spread have impacted the markets in which we operate and could have a material adverse impact on our business and its operations. ​ 25 ​ Table of Contents The COVID-19 pandemic and measures to contain it have negatively impacted regional and global economies and trade patterns in markets in which we operate, the way we operate our business, and the businesses of our charterers and suppliers.
Added
Any of the foregoing could have a material adverse effect on our business, results of operations, cash flows, financial condition and ability to pay dividends. ​ At the end of 2023, Houthi rebels began to attack commercial vessels transiting the southern Red Sea and Gulf of Aden region.
Removed
These negative impacts could continue or worsen, even though the pandemic has diminished and measures to contain its spread have been relaxed. The pandemic may have far-reaching repercussions on our business and industry that are currently unknown.
Added
At the start of 2024, the attacks have increased in frequency despite intervention from several outside countries, including the United States through Operation Prosperity Guardian. These attacks have led to augmented risks regarding transit in the region.
Removed
The pandemic resulted in reduced industrial activity in China on which our business substantially depends, as well as in other major industrial and financial centers, including the U.S., the E.U., Japan, India, South Korea and Brazil.
Added
As a result, many shipping companies across the drybulk, tanker and container sectors have elected to re-route their vessels around the Cape of Good Hope, increasing sailing distances.
Removed
Declines in worldwide, regional, or national economic conditions and activity could reduce demand for drybulk cargoes and shipping services and may negatively affect our charters, suppliers, and other parties with which we do business. ​ We also face risks to our personnel and operations due to COVID-19, as our crews face risk of exposure as a result of travel, and our shore-based personnel likewise face such exposure, as we are headquartered in New York and have offices in other major metropolitan areas.
Added
On January 17, 2024, the Genco Picardy, a 2005-built 55,255 dwt Supramax vessel, was impacted by an unidentified projectile while transiting through the Gulf of Aden laden with a cargo of phosphate rock.
Removed
Disruption of normal business activities due to COVID-19 and the imposition of measures against its spread may result in operational disruptions and delays, including increases in deviation and incremental fuel consumption. We have and may continue to incur additional expenses associated with testing, personal protective equipment, quarantines, and travel expenses such as airfare costs, in order to perform crew rotations.
Added
Such acts may result in temporary increases in shipping rates as vessels are rerouted, which may result in declines in shipping rates after such acts cease.
Removed
Some ports reimposed restrictions that affected crew rotations during the first half of 2022. Measures against COVID-19 in a number of countries have restricted crew rotations on our vessels, which could continue or become more restrictive.
Added
However, Russia exited the agreement in July 2023. Since then, Ukraine has established its own corridor to export the country’s agricultural products outside of the Black Sea Grain Initiative. Overall, volumes along these routes have been lower relative to pre-war levels. Ukraine has been using the corridor in an attempt to revive its seaborne exports without Russia’s approval.
Removed
Although conditions have significantly improved and our COVID-19 exposure related risk has declined over time, we may experience disruptions to our normal vessel operations caused by increased deviation time from positioning our vessels where we can undertake a crew rotation and we may incur additional expenses in the future. ​ Our $450 Million Credit Facility contains collateral maintenance covenants that require the aggregate appraised value of collateral vessels to be at least 140% of the principal amount of the loan outstanding under such facility.
Added
Future prospects for Ukrainian grain shipments and the impact on drybulk markets for the shipment of grain and other cargoes remain unpredictable.
Removed
If the values of our vessels were to decline as a result of COVID-19 or otherwise, we may not satisfy this covenant.
Added
Failure to reinstate the agreement or the continuation or worsening of the war in Ukraine could have an adverse impact on our business, financial condition, results of operations, and ability to pay dividends. ​ In addition, on October 7, 2023, the Palestinian Sunni Islamist group Hamas led surprise attacks against Israel from the Gaza Strip by land, sea, and air, reportedly killing more than 1,400 Israelis and other nationals and taking a number of hostages.
Removed
While Ukraine and Russia reached an agreement to extend an arrangement allowing shipment of grain from Ukrainian ports through a humanitarian corridor in the Black Sea in November 2022, the agreement could be terminated before its expiration date in March 2023, or the agreement may not be renewed.
Added
In response, Israel’s cabinet formally declared war on Hamas, and Israel has commenced military operations against Hamas in Gaza. The impacts of the Israel-Hamas war on the global economy, including commodity pricing and demand, among other factors, are currently unknown.
Removed
Any inability that GSSM or we experience in the future to hire, train and retain a sufficient number of qualified employees could impair our ability to manage, maintain and grow our business, which could have a material adverse effect on our business, results of operations, cash flows, financial condition, and ability to pay dividends. ​ Labor interruptions could disrupt our business. ​ Our vessels are manned by masters, officers and crews employed by third parties.
Added
The continuation or worsening of the Israel-Hamas war could have an adverse impact on our business, financial condition, results of operations, and ability to pay dividends. The Houthi attacks on commercial vessels in the southern Red Sea and Gulf of Aden have led to many shipping companies to make a decision to avoid transiting the region.
Removed
These restrictions could become more restrictive or widespread, and we may be further limited in or prevented from operating scrubbers on our vessels as a result. See “General – IMO 2020 Compliance” in Item 7, Management’s Discussion and Analysis of Financial Condition for further details.
Added
This will extend the duration of many trade routes, effectively reducing vessel capacity. While the containership industry is most impacted by the re-routing, due to the amount of cargo volume transiting the area, drybulk is likely to experience an impact to the supply and demand balance as well.
Removed
Moreover, i n the recent past, concerns have been publicized that some of the member banks surveyed by the British Bankers’ Association (“BBA”) in connection with the calculation of LIBOR may have been underreporting or otherwise manipulating the inter-bank lending rate applicable to them.
Added
Key cargoes loaded by our vessels that could have longer trade routes include iron ore, coal, grain and various minor bulk commodities.
Removed
A number of BBA member banks entered into settlements with their regulators and law enforcement agencies with respect to alleged LIBOR manipulation, and investigations by regulators and governmental authorities in various jurisdictions are ongoing. In addition, on July 27, 2017, the U.K.
Added
The extent of the impact as well as the trajectory of the current situation is fluid and we continue to monitor current events. ​ Terrorist attacks continue to cause uncertainty in the world’s financial markets and may affect our business.
Removed
Financial Conduct Authority announced that it intends to stop persuading or compelling banks to submit LIBOR rates after 2021. ​ All LIBOR tenors relevant to us will cease to be published or will no longer be representative after June 30, 2023.
Added
To the extent our vessels are found with contraband, whether inside or attached to the hull and regardless of our crew’s knowledge, we may face governmental or other regulatory claims, which could have an adverse effect on our business, results of operations, cash flows, financial condition, and ability to pay dividends. 30 ​ Table of Contents ​ Governments could requisition our vessels during a period of war or emergency, resulting in loss of earnings. ​ A government of a vessel’s registry could requisition for title or seize our vessels.

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Item 2. Properties

Properties — owned and leased real estate

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Biggest changePlease see “Liquidity and Capital Resources” and “Critical Accounting Policies — Vessels and Depreciation” in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operation” for a further description. The foregoing descriptions are incorporated into this Item 2 by reference. ​ We consider each of our significant properties to be suitable for its intended use. ​
Biggest changeThe foregoing descriptions are incorporated into this Item 2 by reference. ​ We consider each of our significant properties to be suitable for its intended use. ​
Following the expiration of the free base rental period, the monthly base rental payments are $0.2 million per month from October 1, 2018 to April 30, 2023 and $0.2 million per month from May 1, 2023 to September 30, 2025. ​ Future minimum rental payments on the above lease for the next four years are as follows: $2.4 million for 2023, $2.5 million for 2024 and $1.8 million for 2025. ​ On June 14, 2019, we entered into a sublease agreement for a portion of this leased space for our main office in New York, New York that commenced on July 26, 2019 and will end on September 29, 2025.
Following the expiration of the free base rental period, the monthly base rental payments are $0.2 million per month from October 1, 2018 to April 30, 2023 and $0.2 million per month from May 1, 2023 to September 30, 2025. ​ Future minimum rental payments on the above lease for the next two years are as follows: $2.5 million for 2024 and $1.8 million for 2025. ​ On June 14, 2019, we entered into a sublease agreement for a portion of this leased space for our main office in New York, New York that commenced on July 26, 2019 and will end on September 29, 2025.
During June 2022, a lease was signed for a new office space in Copenhagen effective January 1, 2023 for a minimum period ending January 1, 2025. ​ For a description of our vessels, see “Our Fleet” in Item 1, “Business” in this report. Thirty-nine of the vessels in our current fleet serve as collateral under our credit facility.
During June 2022, a lease was signed for a new office space in Copenhagen effective January 1, 2023 for a minimum period ending January 1, 2025. ​ For a description of our vessels, see “Our Fleet” in Item 1, “Business” in this report.
A lease was signed for a new office space in Singapore effective January 17, 2019 for a three-year term, which has been extended effective January 17, 2022 for a two-year term. ​ Lastly, during July 2018, we entered into a lease for office space in Copenhagen which commenced on July 1, 2018 and ended on April 30, 2019.
This lease was further extended effective January 17, 2024 for a two-year term. ​ 40 ​ Table of Contents Lastly, during July 2018, we entered into a lease for office space in Copenhagen which commenced on July 1, 2018 and ended on April 30, 2019.
Added
A lease was signed for a new office space in Singapore effective January 17, 2019 for a three-year term, which has been extended effective January 17, 2022 for a two-year term.
Added
As of December 31, 2023, 45 of the vessels in our fleet served as collateral under our credit facility. Please see “Liquidity and Capital Resources” and “Critical Accounting Policies — Vessels and Depreciation” in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operation” for a further description.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeThe claim has not had a significant effect on our 39 ​ Table of Contents results of operations or cash flows to date, and we do not anticipate that it will have such an effect in the future, although there can be no assurance that it will not. ​ We are not involved in any other legal proceedings that we believe are likely to have, or have had a significant effect on our business, financial position, results of operations or cash flows, nor are we aware of any other proceedings that are pending or threatened which we believe are likely to have a significant effect on our business, financial position, results of operations or liquidity.
Biggest changeUnder the settlement terms, which are currently being implemented, we will be reimbursed for damages we sustained because of the arrest of the Genco Constellation (including contractual revenue and affiliated expenses) as well as for the ensuing legal and security fees and costs we have incurred in order to defend against the claims brought by the other parties. ​ The claim has not had a significant effect on our results of operations or cash flows to date, and we do not anticipate that it will have such an effect in the future, although there can be no assurance that it will not. ​ We are not involved in any other legal proceedings that we believe are likely to have, or have had a significant effect on our business, financial position, results of operations or cash flows, nor are we aware of any other proceedings that are pending or threatened which we believe are likely to have a significant effect on our business, financial position, results of operations or liquidity.
Ltd (“Hizone”) had sub-chartered the vessel from SCM Cooperation Limited, which in turn had subchartered the vessel from BG Shipping Co. Limited, who had chartered the vessel from us. A dispute arose due to the need to restow the cargo to ensure the safety of the crew and the vessel.
Ltd (“Hizone”) had sub-chartered the vessel from SCM Corporation Limited, which had subchartered the vessel from BG Shipping Co. Limited, which in turn had chartered the vessel from us. A dispute arose due to the need to restow the cargo to ensure the safety of the crew and the vessel.
Following the vessel’s arrival at Tema Harbour in Ghana, Hizone petitioned the Superior Court of Judicature to have the vessel arrested in connection with a claim alleging damages. Such petition was granted on December 14, 2022 and although Genco offered security to release the vessel shortly thereafter, the vessel has still not been released.
Following the vessel’s arrival at Tema Harbour in Ghana, Hizone petitioned the Superior Court of Judicature to have the vessel arrested in connection with a claim alleging damages. The petition was granted on December 14, 2022 and although Genco offered security to release the vessel shortly thereafter, the vessel was only released at the end of February 2023.
Moreover, Hizone petitioned the Superior Court of Judicature to have the vessel arrested again on February 2, 2023 on an allegedly different claim. The vessel has not been generating revenue while it has been subject to arrest and will not generate revenue unless and until it is released.
Moreover, Hizone petitioned the Superior Court of Judicature to have the vessel arrested again on February 2, 2023 on an allegedly different claim. The vessel was not generating revenue while it was subject to arrest.
The Company believes that these claims are without merit, has valid defenses against them and is vigorously defending them while continuing to seek the release of the Genco Constellation and any damages arising from the arrest of the vessel, including the recovery of lost revenue while arrested and reimbursement of legal fees as well as taking actions to secure counter security from BG Shipping Co.
We vigorously defended them while continuing to seek reimbursement of damages arising from the arrest of the vessel, including the recovery of lost revenue while arrested and reimbursement of legal fees. The Company obtained security from BG Shipping Co. Limited and proceeded with arbitration.
Added
During the first quarter of 2024, we settled all disputes and claims pertaining to this matter by entering into settlement agreements with the opposing parties.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeMARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND PURCHASES OF EQUITY SECURITIES ​ MARKET INFORMATION, HOLDERS AND DIVIDENDS ​ Our common stock is traded on the New York Stock Exchange (“NYSE”) under the symbol “GNK.” ​ As of February 22, 2023, there were approximately six holders of record of our common stock. ​ On April 19, 2021, our Board of Directors adopted a new quarterly dividend policy commencing in the first quarter of 2022 in respect to our financial results for the fourth quarter of 2021 based on a formula.
Biggest changeMARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES ​ MARKET INFORMATION, HOLDERS AND DIVIDENDS ​ Our common stock is traded on the New York Stock Exchange (“NYSE”) under the symbol “GNK.” ​ 41 ​ Table of Contents As of February 27, 2024, there were approximately eleven holders of record of our common stock. ​ On April 19, 2021, our Board of Directors adopted a new quarterly dividend policy commencing in the first quarter of 2022 in respect to our financial results for the fourth quarter of 2021 based on a formulaic approach.
Our quarterly dividend policy and declaration and payment of dividends are subject to legally available funds, compliance with applicable laws and contractual obligations (including our credit facility) and our Board’s determination that each declaration and payment is at that time in the best interests of the Company and its shareholders after its review of our financial performance. ​ For a discussion of restrictions applicable to our payment of dividends as well as the formula for calculating the quarterly dividends, please see “Liquidity and Capital Resources—Dividends” in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operation” below. ​ 40 ​ Table of Contents PART II ​
Our quarterly dividend policy and declaration and payment of dividends are subject to legally available funds, compliance with applicable laws and contractual obligations (including our credit facility) and our Board’s determination that each declaration and payment is at that time in the best interests of the Company and its shareholders after its review of our financial performance. ​ For a discussion of restrictions applicable to our payment of dividends as well as the formula for calculating the quarterly dividends, please see “Liquidity and Capital Resources—Dividends” in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operation” below. ​ 42 ​ Table of Contents PART II ​

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeThe table reflects our ownership days, chartered-in days, available days, operating days, fleet utilization, TCE rates and daily vessel operating expenses for the years ended December 31, 2022 and 2021 on a consolidated basis. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ Increase ​ ​ ​ ​ 2022 2021 (Decrease) ​ % Change Fleet Data: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ownership days (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capesize ​ 6,205.0 ​ ​ 6,205.0 ​ ​ — ​ — % Ultramax ​ 5,464.9 ​ ​ 3,716.8 ​ ​ 1,748.1 ​ 47.0 % Supramax ​ 4,380.0 ​ ​ 5,027.2 ​ ​ (647.2) ​ (12.9) % Handysize ​ — ​ ​ 227.5 ​ ​ (227.5) ​ (100.0) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ 16,049.9 ​ ​ 15,176.5 ​ ​ 873.4 ​ 5.8 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Chartered-in days (2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capesize ​ ​ — ​ ​ — ​ ​ — ​ ​ — % Ultramax ​ ​ 476.8 ​ ​ 450.1 ​ ​ 26.7 ​ ​ 5.9 % Supramax ​ ​ 584.9 ​ ​ 979.9 ​ ​ (395.0) ​ (40.3) % Handysize ​ ​ — ​ ​ 42.2 ​ ​ (42.2) ​ ​ (100.0) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ 1,061.7 ​ ​ 1,472.2 ​ ​ (410.5) ​ ​ (27.9) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available days (owned & chartered-in fleet) (3) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capesize ​ 5,458.2 ​ ​ 6,118.6 ​ ​ (660.4) ​ (10.8) % Ultramax ​ 5,793.5 ​ ​ 4,079.2 ​ ​ 1,714.3 ​ 42.0 % Supramax ​ 4,817.8 ​ ​ 5,944.9 ​ ​ (1,127.1) ​ (19.0) % Handysize ​ — ​ ​ 269.8 ​ ​ (269.8) ​ (100.0) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ 16,069.5 ​ ​ 16,412.5 ​ ​ (343.0) ​ (2.1) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available days (owned fleet) (4) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capesize ​ ​ 5,458.2 ​ ​ 6,118.6 ​ ​ (660.4) ​ (10.8) % Ultramax ​ ​ 5,316.7 ​ ​ 3,629.1 ​ ​ 1,687.6 ​ 46.5 % Supramax ​ ​ 4,232.9 ​ ​ 4,965.0 ​ ​ (732.1) ​ (14.7) % Handysize ​ ​ — ​ ​ 227.6 ​ ​ (227.6) ​ (100.0) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ 15,007.8 ​ ​ 14,940.3 ​ ​ 67.5 ​ 0.5 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating days (5) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capesize ​ 5,329.2 ​ ​ 6,080.1 ​ ​ (750.9) ​ (12.4) % Ultramax ​ 5,730.0 ​ ​ 4,015.2 ​ ​ 1,714.8 ​ 42.7 % Supramax ​ 4,681.6 ​ ​ 5,835.7 ​ ​ (1,154.1) ​ (19.8) % Handysize ​ — ​ ​ 233.5 ​ ​ (233.5) ​ (100.0) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ 15,740.8 ​ ​ 16,164.5 ​ ​ (423.7) ​ (2.6) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fleet utilization (6) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capesize ​ 96.8 % ​ 98.8 % ​ (2.0) % ​ (2.0) % Ultramax ​ 97.7 % ​ 97.6 % ​ 0.1 % ​ 0.1 % Supramax ​ 94.7 % ​ 97.6 % ​ (2.9) % ​ (3.0) % Handysize ​ — % ​ 86.6 % ​ (86.6) % ​ (100.0) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fleet average ​ 96.5 % ​ 97.9 % ​ (1.4) % ​ (1.4) % ​ ​ 44 ​ Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ Increase ​ ​ ​ ​ 2022 2021 (Decrease) % Change Average Daily Results: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Time Charter Equivalent (7) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capesize ​ $ 22,492 ​ $ 27,293 ​ $ (4,801) (17.6) % Ultramax ​ 25,945 ​ 22,169 ​ 3,776 17.0 % Supramax ​ 22,873 ​ 23,235 ​ (362) (1.6) % Handysize ​ — ​ 8,116 ​ (8,116) (100.0) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fleet average ​ 23,824 ​ 24,402 ​ (578) (2.4) % Major bulk vessels ​ ​ 22,492 ​ ​ 27,293 ​ ​ (4,801) ​ (17.6) % Minor bulk vessels ​ ​ 24,585 ​ ​ 22,397 ​ ​ 2,188 ​ 9.8 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Daily vessel operating expenses (8) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capesize ​ $ 6,023 ​ $ 5,572 ​ $ 451 8.1 % Ultramax ​ 5,450 ​ 5,062 ​ 388 7.7 % Supramax ​ 7,382 ​ 5,443 ​ 1,939 35.6 % Handysize ​ — ​ 5,856 ​ (5,856) (100.0) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fleet average ​ 6,197 ​ 5,409 ​ 788 14.6 % (1) Ownership days .
Biggest changeThe table reflects our ownership days, chartered-in days, available days, operating days, fleet utilization, TCE rates and daily vessel operating expenses for the years ended December 31, 2023 and 2022 on a consolidated basis. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended ​ ​ ​ ​ ​ ​ ​ December 31, ​ Increase ​ ​ ​ 2023 2022 (Decrease) % Change Fleet Data: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ownership days (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capesize ​ 6,280.2 ​ ​ 6,205.0 ​ ​ 75.2 1.2 % Ultramax ​ 5,475.0 ​ ​ 5,464.9 ​ ​ 10.1 0.2 % Supramax ​ 4,380.0 ​ ​ 4,380.0 ​ ​ — — % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ 16,135.2 ​ ​ 16,049.9 ​ ​ 85.3 0.5 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Chartered-in days (2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capesize ​ ​ — ​ ​ — ​ ​ — ​ — % Ultramax ​ ​ 435.4 ​ ​ 476.8 ​ ​ (41.4) ​ (8.7) % Supramax ​ ​ 120.9 ​ ​ 584.9 ​ ​ (464.0) (79.3) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ 556.3 ​ ​ 1,061.7 ​ ​ (505.4) ​ (47.6) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available days (owned & chartered-in fleet) (3) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capesize ​ 6,138.2 ​ ​ 5,458.2 ​ ​ 680.0 12.5 % Ultramax ​ 5,880.0 ​ ​ 5,793.5 ​ ​ 86.5 1.5 % Supramax ​ 4,244.5 ​ ​ 4,817.8 ​ ​ (573.3) (11.9) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ 16,262.7 ​ ​ 16,069.5 ​ ​ 193.2 1.2 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available days (owned fleet) (4) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capesize ​ ​ 6,138.2 ​ ​ 5,458.2 ​ ​ 680.0 12.5 % Ultramax ​ ​ 5,444.6 ​ ​ 5,316.7 ​ ​ 127.9 2.4 % Supramax ​ ​ 4,123.6 ​ ​ 4,232.9 ​ ​ (109.3) (2.6) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ 15,706.4 ​ ​ 15,007.8 ​ ​ 698.6 4.7 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating days (5) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capesize ​ 6,088.6 ​ ​ 5,329.2 ​ ​ 759.4 14.2 % Ultramax ​ 5,745.4 ​ ​ 5,730.0 ​ ​ 15.4 0.3 % Supramax ​ 4,167.4 ​ ​ 4,681.6 ​ ​ (514.2) (11.0) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ 16,001.4 ​ ​ 15,740.8 ​ ​ 260.6 1.7 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fleet utilization (6) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capesize ​ 98.1 % ​ 96.8 % ​ 1.3 % 1.3 % Ultramax ​ 97.2 % ​ 97.7 % ​ (0.5) % (0.5) % Supramax ​ 96.1 % ​ 94.7 % ​ 1.4 % 1.5 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fleet average ​ 97.3 % ​ 96.5 % ​ 0.8 % 0.8 % ​ ​ 45 ​ Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ Increase ​ ​ ​ ​ 2023 2022 (Decrease) % Change Average Daily Results: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Time Charter Equivalent (7) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capesize ​ $ 18,280 ​ $ 22,492 ​ $ (4,212) (18.7) % Ultramax ​ 13,780 ​ 25,945 ​ (12,165) (46.9) % Supramax ​ 10,840 ​ 22,873 ​ (12,033) (52.6) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fleet average ​ 14,766 ​ 23,824 ​ (9,058) (38.0) % Major bulk vessels ​ ​ 18,280 ​ ​ 22,492 ​ ​ (4,212) ​ (18.7) % Minor bulk vessels ​ ​ 12,512 ​ ​ 24,585 ​ ​ (12,073) ​ (49.1) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Daily vessel operating expenses (8) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capesize ​ $ 6,270 ​ $ 6,023 ​ $ 247 4.1 % Ultramax ​ 5,449 ​ 5,450 ​ (1) (0.0) % Supramax ​ 6,405 ​ 7,382 ​ (977) (13.2) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fleet average ​ 6,017 ​ 6,197 ​ (180) (2.9) % (1) Ownership days .
Charter rates may remain at 63 ​ Table of Contents depressed levels for a prolonged period of time, which could adversely affect our revenue and profitability, and future assessments of vessel impairment. ​
Charter rates may remain at depressed levels for a prolonged period of time, which could adversely affect our revenue and profitability, and future assessments of vessel impairment. ​ 63 ​ Table of Contents
Holder from the sale or exchange of such common shares will be treated as long-term capital loss to the extent of such dividend. ​ Tax Consequences if We Are a Passive Foreign Investment Company ​ As discussed in “U.S. tax authorities could treat us as a ‘passive foreign investment company,’ which could have adverse U.S. federal income tax consequences to U.S. shareholders” in Item 1.A Risk Factors in this report, a foreign corporation generally will be treated as a PFIC for U.S. federal income tax purposes if, after applying certain look through rules, either (1) at least 75% of its gross income for any taxable year consists of “passive income” or (2) at least 50% of the average value or adjusted bases of its assets (determined on a quarterly basis) produce or are held for the production of passive income, i.e., “passive assets.” As discussed above, we do not believe that our past or existing operations would cause, or would have caused, us to be deemed a PFIC with respect to any taxable year.
Holder from the sale or exchange of such common shares will be treated as long-term capital loss to the extent of such dividend. ​ 55 ​ Table of Contents Tax Consequences if We Are a Passive Foreign Investment Company ​ As discussed in “U.S. tax authorities could treat us as a ‘passive foreign investment company,’ which could have adverse U.S. federal income tax consequences to U.S. shareholders” in Item 1.A Risk Factors in this report, a foreign corporation generally will be treated as a PFIC for U.S. federal income tax purposes if, after applying certain look through rules, either (1) at least 75% of its gross income for any taxable year consists of “passive income” or (2) at least 50% of the average value or adjusted bases of its assets (determined on a quarterly basis) produce or are held for the production of passive income, i.e., “passive assets.” As discussed above, we do not believe that our past or existing operations would cause, or would have caused, us to be deemed a PFIC with respect to any taxable year.
Holder: ​ ● fails to provide us with an accurate taxpayer identification number; 55 ​ Table of Contents ● is notified by the IRS that they have become subject to backup withholding because they previously failed to report all interest and dividends required to be shown on their federal income tax returns; or ● fails to comply with applicable certification requirements ​ A holder that is not a U.S.
Holder: ​ ● fails to provide us with an accurate taxpayer identification number; ● is notified by the IRS that they have become subject to backup withholding because they previously failed to report all interest and dividends required to be shown on their federal income tax returns; or ● fails to comply with applicable certification requirements 56 ​ Table of Contents ​ A holder that is not a U.S.
Holder.” ​ Subject to the discussion of passive foreign investment company (PFIC) status on pages 35 - 36 of this report, any distributions made by us to a U.S. Holder with respect to our common shares generally will constitute dividends to the extent of our current or accumulated earnings and profits, as determined under U.S. federal income tax principles.
Holder.” ​ Subject to the discussion of passive foreign investment company (PFIC) status on pages 36 - 37 of this report, any distributions made by us to a U.S. Holder with respect to our common shares generally will constitute dividends to the extent of our current or accumulated earnings and profits, as determined under U.S. federal income tax principles.
If indicators of impairment are present, we perform an analysis of the anticipated undiscounted future net cash flows to be derived from the related long-lived assets. ​ Although rates have been strong on a relative basis in 2021 and 2022, the drybulk charter market has been volatile in recent years.
If indicators of impairment are present, we perform an analysis of the anticipated undiscounted future net cash flows to be derived from the related long-lived assets. ​ Although rates have been strong on a relative basis in 2023 and 2022, the drybulk charter market has been volatile in recent years.
Our management uses EBITDA as a performance measure in 47 ​ Table of Contents our consolidated internal financial statements, and it is presented for review at our board meetings. We believe that EBITDA is useful to investors as the shipping industry is capital intensive which often results in significant depreciation and cost of financing.
Our management uses EBITDA as a performance measure in 48 ​ Table of Contents our consolidated internal financial statements, and it is presented for review at our board meetings. We believe that EBITDA is useful to investors as the shipping industry is capital intensive which often results in significant depreciation and cost of financing.
The majority of the vessels in our current fleet are presently engaged under time charter, spot market voyage charters and spot market-related time charters that expire (assuming the option periods in the time charters are not exercised) between February 2023 and February 2024. ​ See pages 5 – 6 for a table of our current fleet. ​ IMO 2023 Compliance ​ In 2021, Genco initiated a comprehensive plan to comply with upcoming IMO regulations in 2023, namely the Energy Efficiency Existing Ship Index (“EEXI”) and the Carbon Intensity Indicator (“CII”) metrics, which call for a reduction in vessel greenhouse gas emissions.
The majority of the vessels in our current fleet are presently engaged under time charter, spot market voyage charters and spot market-related time charters that expire (assuming the option periods in the time charters are not exercised) between February 2024 and February 2025. ​ See pages 5 – 6 for a table of our current fleet. ​ IMO 2023 Compliance ​ In 2021, Genco initiated a comprehensive plan to comply with IMO regulations that took effect in 2023, namely the Energy Efficiency Existing Ship Index (“EEXI”) and the Carbon Intensity Indicator (“CII”) metrics, which call for a reduction in vessel greenhouse gas emissions.
Discussions of 2020 items and year-to-year comparisons between 2021 and 2020 that are not included in this Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the SEC on February 24, 2022. ​ We are a Marshall Islands company that transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes through the ownership and operation of drybulk carrier vessels.
Discussions of 2021 items and year-to-year comparisons between 2022 and 2021 that are not included in this Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 filed with the SEC on February 22, 2023. ​ We are a Marshall Islands company that transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes through the ownership and operation of drybulk carrier vessels.
The MD&A is provided as a supplement to, and should be read in conjunction with, our consolidated financial statements and notes thereto included in Item 8 – Financial Statements and Supplementary Data. ​ The MD&A generally discusses 2022 and 2021 items and year-to-year comparisons between 2022 and 2021.
The MD&A is provided as a supplement to, and should be read in conjunction with, our consolidated financial statements and notes thereto included in Item 8 – Financial Statements and Supplementary Data. ​ The MD&A generally discusses 2023 and 2022 items and year-to-year comparisons between 2023 and 2022.
Based on the sensitivity analysis performed by the Company, the Company would record impairment on its vessels for time charter declines from their most recent ten-year historical one-year time charter averages as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ Percentage Decline from Ten-Year ​ ​ Historical One-Year Time Charter ​ ​ Average at Which Point Impairment ​ ​ Would be Recorded ​ As of As of ​ ​ December 31, ​ December 31, Vessel Class 2022 2021 Capesize (18.0) % (21.2) % Ultramax (1) (9.5) % N/A ​ Supramax (2) N/A ​ N/A ​ (1) There were no indicators of impairment for our Ultramax vessels at December 31, 2021 as the respective fair market values of these vessels were higher than their respective carrying values.
Based on the sensitivity analysis performed by the Company, the Company would record impairment on its vessels for time charter declines from their most recent ten-year historical one-year time charter averages as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ Percentage Decline from Ten-Year ​ ​ Historical One-Year Time Charter ​ ​ Average at Which Point Impairment ​ ​ Would be Recorded ​ As of As of ​ ​ December 31, ​ December 31, Vessel Class 2023 2022 Capesize (10.5) % (18.0) % Ultramax (1) N/A ​ (9.5) ​ Supramax (2) N/A ​ N/A ​ (1) There were no indicators of impairment for our Ultramax vessels at December 31, 2023, as the respective fair market values of these vessels were higher than their respective carrying values.
As such, these vessels were not subject to impairment testing as of December 31, 2021. (2) There were no indicators of impairment for our Supramax vessels as of December 31, 2022 and 2021, as the respective fair market values of these vessels were higher than their respective carrying values.
As such, these vessels were not subject to impairment testing as of December 31, 2023. (2) There were no indicators of impairment for our Supramax vessels as of December 31, 2023 and 2022, as the respective fair market values of these vessels were higher than their respective carrying values.
In determining the fair value of interest rate derivatives, we consider the creditworthiness of both the counterparty and ourselves, which has not changed significantly and has no effect on the valuation. Valuations prior to any adjustments for credit risk would be validated by comparison with counterparty valuations.
In determining the fair value of interest rate derivatives, we consider the creditworthiness of both the counterparty and ourselves, which has not changed significantly and has no effect on the 57 ​ Table of Contents valuation. Valuations prior to any adjustments for credit risk would be validated by comparison with counterparty valuations.
Holders generally may obtain a refund of any amounts withheld under backup withholding rules that exceed their income tax liability by timely filing a refund claim with the IRS. ​ You are encouraged to consult your own tax advisor concerning the overall tax consequences arising in your own particular situation under U.S. federal, state, local, or foreign law from the payment of dividends on our common stock. ​ Cash Flows ​ Net cash provided by operating activities for the years ended December 31, 2022 and 2021 was $189.3 million and $231.1 million, respectively.
Holders generally may obtain a refund of any amounts withheld under backup withholding rules that exceed their income tax liability by timely filing a refund claim with the IRS. ​ You are encouraged to consult your own tax advisor concerning the overall tax consequences arising in your own particular situation under U.S. federal, state, local, or foreign law from the payment of dividends on our common stock. ​ Cash Flows ​ Net cash provided by operating activities for the years ended December 31, 2023 and 2022 was $91.8 million and $189.3 million, respectively.
Special rules may apply to any “extraordinary dividend” — generally, a dividend in an amount which is equal to or in excess of 10% of a shareholder’s adjusted basis (or fair market value in certain circumstances) in a share of our 54 ​ Table of Contents common shares — paid by us.
Special rules may apply to any “extraordinary dividend” — generally, a dividend in an amount which is equal to or in excess of 10% of a shareholder’s adjusted basis (or fair market value in certain circumstances) in a share of our common shares — paid by us.
As such, these vessels were not subject to impairment testing as of December 31, 2022 and 2021. ​ For our impairment analysis, we utilize the ten-year historical one-year time charter average, as well as considering the current rate environment, to project future charter rates, which we believe appropriately takes into account the volatility and highs and lows of the shipping cycle. ​ Our time charter equivalent (TCE) rates for our fiscal years ended December 31, 2022 and 2021, respectively, were above the ten-year historical one-year time charter average as of such dates as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ TCE Rates as Compared with Ten- ​ ​ Year Historical One-Year Time ​ ​ Charter Average ​ ​ (as percentage above) ​ ​ For the Years Ended December 31, Vessel Class 2022 2021 Capesize 37.7 % 74.9 % Ultramax 104.3 % 88.2 % Supramax 98.8 % 119.9 % ​ ​ The projected net operating cash flows are determined by considering the future voyage revenues from existing time charters for the fixed fleet days and an estimated daily time charter equivalent for the unfixed days over the estimated remaining life of the vessel, assumed to be 25 years from the delivery of the vessel from the shipyard, reduced by brokerage and address commissions, expected outflows for vessels’ maintenance and vessel operating expenses (including planned drydocking and special survey expenditures) and required capital expenditures adjusted annually for inflation, assuming fleet utilization of 98%.
As such, these vessels were not subject to impairment testing as of December 31, 2023 and 2022. ​ For our impairment analysis, we utilize the ten-year historical one-year time charter average, as well as considering the current rate environment, to project future charter rates, which we believe appropriately takes into account the volatility and highs and lows of the shipping cycle. ​ Our time charter equivalent (TCE) rates for our fiscal years ended December 31, 2023 and 2022, respectively, were above or (below) the ten-year historical one-year time charter average as of such dates as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ TCE Rates as Compared with Ten- ​ ​ Year Historical One-Year Time ​ ​ Charter Average ​ ​ (as percentage above/(below)) ​ ​ For the Years Ended December 31, Vessel Class 2023 2022 Capesize 21.6 % 37.7 % Ultramax 8.2 % 104.3 % Supramax (6.0) % 98.8 % ​ ​ The projected net operating cash flows are determined by considering the future voyage revenues from existing time charters for the fixed fleet days and an estimated daily time charter equivalent for the unfixed days over the estimated remaining life of the vessel, assumed to be 25 years from the delivery of the vessel from the shipyard, reduced by brokerage and address commissions, expected outflows for vessels’ maintenance and vessel operating expenses (including planned drydocking and special survey expenditures) and required capital expenditures adjusted annually for inflation, assuming fleet utilization of 98%.
These amounts were deducted from operating cash flows in each of our quarterly 2022 dividend payment calculation. The remainder of the debt we paid down included $40.0 million which was prepaid to optimize our working capital management, using our revolver to keep funds available while saving interest expense.
These amounts were deducted from operating cash flows in each of our quarterly 2022 and 2023 dividend payment calculations. The remainder of the debt we paid down included $40.0 million which was prepaid to optimize our working capital management, using our revolver to keep funds available while saving interest expense.
Daily vessel operating expenses are calculated by dividing vessel operating expenses by ownership days for the relevant period. 46 ​ Table of Contents Operating Data ​ The following tables represent the operating data and certain balance sheet and other data as of and for the years ended December 31, 2022 and 2021 on a consolidated basis. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended December 31, ​ ​ ​ ​ ​ ​ 2022 2021 Change % Change Income Statement Data: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (U.S.
Daily vessel operating expenses are calculated by dividing vessel operating expenses by ownership days for the relevant period. 47 ​ Table of Contents Operating Data ​ The following tables represent the operating data and certain balance sheet and other data as of and for the years ended December 31, 2023 and 2022 on a consolidated basis. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended December 31, ​ ​ ​ ​ ​ ​ 2023 2022 Change % Change Income Statement Data: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (U.S.
Our fleet currently consists of 44 drybulk vessels, including 17 Capesize drybulk carriers, 15 Ultramax drybulk carriers and twelve Supramax drybulk carriers. ​ As previously announced, we have implemented a fuel efficiency upgrade program for certain of our vessels in an effort to generate fuel savings and increase the future earnings potential for these vessels.
Our fleet currently consists of 45 drybulk vessels, including 18 Capesize drybulk carriers, 15 Ultramax drybulk carriers and twelve Supramax drybulk carriers. ​ As previously announced, we have implemented a fuel efficiency upgrade program for certain of our vessels in an effort to generate fuel savings and increase the future earnings potential for these vessels.
Marshall Islands law also prohibits the declaration and payment of dividends or stock repurchases while a company is insolvent or would be 53 ​ Table of Contents rendered insolvent by the payment of such a dividend or such a stock repurchase.
Marshall Islands law also prohibits the declaration and payment of dividends or stock repurchases while a company is insolvent or would be rendered insolvent by the payment of such a dividend or such a stock repurchase.
Our vessels remain fully utilized and have a relatively long average remaining useful life of approximately 14 years in which to recover sufficient cash flows on an undiscounted basis to recover their carrying values as of December 31, 2022.
Our vessels remain fully utilized and have a relatively long average remaining useful life of approximately 13 years in which to recover sufficient cash flows on an undiscounted basis to recover their carrying values as of December 31, 2023.
It is also reasonably possible that vessels that were not subject to impairment testing during 2022 because there was no indicator of impairment could be subject to such testing in the future. ​ Of the inputs that the Company uses for its impairment analysis, future charter rates are the most significant and most volatile.
It is also reasonably possible that vessels that were not subject 62 ​ Table of Contents to impairment testing during 2023 because there was no indicator of impairment could be subject to such testing in the future. ​ Of the inputs that the Company uses for its impairment analysis, future charter rates are the most significant and most volatile.
In addition, we consider the current market rate environment and, if necessary, adjust our estimates of undiscounted cash 62 ​ Table of Contents flows to reflect the current rate environment.
In addition, we consider the current market rate environment and, if necessary, adjust our estimates of undiscounted cash flows to reflect the current rate environment.
At December 31, 2022, the total notional principal amount of the interest rate cap agreements was $200.0 million. ​ 56 ​ Table of Contents Refer to the table in Note 8 — Derivative instruments of our Consolidated Financial Statements which summarizes the interest rate cap agreements in place as of December 31, 2022. ​ As part of our business strategy, we may enter into interest rate swap agreements to manage interest costs and the risk associated with changing interest rates.
At December 31, 2023, the total notional principal amount of the interest rate cap agreements was $50.0 million. ​ Refer to the table in Note 8 — Derivative instruments of our Consolidated Financial Statements which summarizes the interest rate cap agreement in place as of December 31, 2023. ​ As part of our business strategy, we may enter into interest rate swap agreements to manage interest costs and the risk associated with changing interest rates.
Throughout 2022, the Company made a total of $75.0 million of voluntary debt prepayments, resulting in a reduced cash flow breakeven rate from previous levels. Of that amount, there were four $8.8 million quarterly repayments that represented the previously announced quarterly debt reduction payment as part of our plan to reduce our debt.
Throughout 2022 and 2023, the Company made a total of $111.0 million of voluntary debt prepayments, resulting in a reduced cash flow breakeven rate from previous levels. Of that amount, there were seven $8.8 million quarterly repayments that represented the previously announced quarterly debt reduction payment as part of our plan to reduce our debt.
The average amount by which the carrying value of these vessels exceeded the valuation of such vessels for covenant compliance purposes was $7.6 million and $5.7 million as of December 31, 2022 and 2021, respectively.
The average amount by which the carrying value of these vessels exceeded the valuation of such vessels for covenant compliance purposes was $6.0 million and $7.6 million as of December 31, 2023 and 2022, respectively.
Anticipated uses for the reserve include, but are not limited to, vessel acquisitions, debt repayments, and general corporate purposes.
Anticipated uses for the voluntary quarterly reserve include, but are not limited to, vessel acquisitions, debt prepayments and repayments, and general corporate purposes.
Under the new quarterly dividend policy, the amount available for quarterly dividends is to be calculated based on the following formula: ​ Operating cash flow Less: Debt repayments Less: Capital expenditures for drydocking Less: Reserve Cash flow distributable as dividends ​ The amount of dividends payable under the foregoing formula for each quarter of the year will be determined on a quarterly basis. ​ For purposes of the foregoing calculation, operating cash flow is defined as voyage revenue less voyage expenses, charter hire expenses, vessel operating expenses, general and administrative expenses other than non-cash restricted stock expenses, technical management fees, and interest expense other than non-cash deferred financing costs.
Under the quarterly dividend policy, the amount available for quarterly dividends is to be calculated based on the following formula: ​ Operating cash flow Less: Capital expenditures for drydocking Less: Voluntary quarterly reserve Cash flow distributable as dividends ​ The amount of dividends payable under the foregoing formula for each quarter of the year will be determined on a quarterly basis. ​ For purposes of the foregoing calculation, operating cash flow is defined as voyage revenue less voyage expenses, charter hire expenses, realized gains or losses on fuel hedges, vessel operating expenses, general and administrative expenses other than non-cash restricted stock expenses, technical management fees, and interest expense other than non-cash deferred financing costs.
The decrease was primarily due to a decrease in chartered-in days during 2022 as compared to 2021. ​ GENERAL AND ADMINISTRATIVE EXPENSES- ​ We incur general and administrative expenses which relate to our onshore non-vessel-related activities.
The decrease was primarily due to a decrease in chartered-in days during 2023 as compared to 2022, as well as a decrease in hire rates. ​ GENERAL AND ADMINISTRATIVE EXPENSES- ​ We incur general and administrative expenses which relate to our onshore non-vessel-related activities.
In order to set aside funds for these purposes, the reserve will be set on a quarterly basis in the discretion of our Board and is anticipated to be based on future quarterly debt repayments and interest expense. ​ On February 22, 2023, our Board declared a quarterly dividend of $0.50 per share.
In order to set aside funds for these purposes, the voluntary reserve will be set on a quarterly basis in the discretion of our Board and is anticipated to be based on future quarterly debt repayments and interest expense. ​ On February 21, 2024, our Board declared a quarterly dividend of $0.41 per share.
Refer to Note 2 — Summary of Significant Accounting Policies and Note 4 — Vessel Acquisitions and Dispositions in our Consolidated Financial Statements for information regarding the sale of vessel assets. ​ Deferred drydocking costs ​ Our vessels are required to be drydocked approximately every 30 to 60 months for major repairs and maintenance that cannot be performed while the vessels are operating.
Refer to Note 2 — Summary of Significant Accounting Policies and Note 4 — Vessel Acquisitions and Dispositions in our Consolidated Financial 61 ​ Table of Contents Statements for information regarding the sale of vessel assets and the classification of vessel assets held for sale as of December 31, 2023. ​ Deferred drydocking costs ​ Our vessels are required to be drydocked approximately every 30 to 60 months for major repairs and maintenance that cannot be performed while the vessels are operating.
Shipping rates for key drybulk routes increased during 2021 after a decline in 2020 which was principally as a result of the global economic slowdown caused by the COVID-19 pandemic.
Shipping rates for key drybulk routes increased during 2021 after a decline in 2020 which was principally as a result of the global economic slowdown caused by the COVID-19 pandemic, while another firm year was seen in 2022.
Refer to Note 2 — Summary of Significant Accounting Policies in our Consolidated Financial Statements. ​ Voyage expenses were $153.9 million and $146.2 million during 2022 and 2021, respectively.
Refer to Note 2 — Summary of Significant Accounting Policies in our Consolidated Financial Statements. ​ Voyage expenses were $143.0 million and $153.9 million during 2023 and 2022, respectively.
As of December 31, 2022, the $450 Million Credit Facility contained collateral maintenance covenants that require the aggregate appraised value of collateral vessels to be at least 140% of the principal amount of the loan outstanding under such facility.
As of December 31, 2023, the $500 Million Revolver contained collateral maintenance covenants that require the aggregate appraised value of collateral vessels to be at least 140% of the principal amount of the loan outstanding under such facility.
Refer to Note 7 — Debt in the Consolidated Financial Statements for information regarding our credit facilities. ​ NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST – ​ During 2022 and 2021, net income attributable to noncontrolling interest was $0.8 million and $0.04 million, respectively, which is associated with the net income attributable to the noncontrolling interest of GSSM, which was formed during September 2021. ​ LIQUIDITY AND CAPITAL RESOURCES ​ Our primary sources of liquidity are cash flow from operations, cash on hand, equity offerings and credit facility borrowings.
Refer to Note 7 — Debt in the Consolidated Financial Statements for information regarding our credit facilities. ​ INTEREST INCOME- ​ Interest income increased by $1.7 million from $1.0 million during 2022 to $2.7 million during 2023 primarily due to higher interest income earned on our cash and cash equivalents. ​ NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST – ​ During 2023 and 2022, net income attributable to noncontrolling interest was $0.5 million and $0.8 million, respectively, which is associated with the net income attributable to the noncontrolling interest of GSSM, which was formed during September 2021. ​ LIQUIDITY AND CAPITAL RESOURCES ​ Our primary sources of liquidity are cash flow from operations, cash on hand, equity offerings and credit facility borrowings.
However, if market conditions were to worsen significantly due to COVID-19, the war in Ukraine, or other causes, then our cash resources may decline to a level that may put at risk our ability to pay dividends per our capital allocation strategy or at all.
However, if market conditions were to worsen significantly due to the war in Ukraine, the Houthi conflict in the Red Sea, the Israel-Hamas war, or other causes, then our cash resources may decline to a level that may put at risk our ability to pay dividends per our capital allocation strategy or at all.
In addition to this one vessel, we estimate that four of our vessels will be drydocked during 2023 and 13 of our vessels will be drydocked during 2024. ​ CRITICAL ACCOUNTING POLICIES AND ESTIMATES ​ The discussion and analysis of our financial condition and results of operations is based upon our Consolidated Financial Statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.
We estimate that ten of our vessels will be drydocked during 2024 and 20 of our vessels will be drydocked during 2025. ​ CRITICAL ACCOUNTING POLICIES AND ESTIMATES ​ The discussion and analysis of our financial condition and results of operations is based upon our Consolidated Financial Statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.
Such a valuation is not necessarily the same as the amount any vessel may bring upon sale, which may be more or less, and should not be relied upon as such. We were in compliance with the collateral maintenance covenant under 59 ​ Table of Contents our $450 Million Credit Facility as of December 31, 2022.
Such a valuation is not necessarily the same as the amount any vessel may bring upon sale, which may be more or less, and should not be relied upon as such. We were in compliance with the collateral maintenance covenant under our $500 Million Revolver as of December 31, 2023.
If we do not satisfy the collateral maintenance requirement, we will need to post additional collateral or prepay outstanding loans to bring us back into compliance, or we will need to seek waivers, which may not be available or may be subject to conditions. ​ In the future, we may require capital to fund acquisitions or to improve or support our ongoing operations and debt structure, particularly in light of economic conditions resulting from the ongoing COVID-19 pandemic.
If we do not satisfy the collateral maintenance requirement, we will need to post additional collateral or prepay outstanding loans to bring us back into compliance, or we will need to seek waivers, which may not be available or may be subject to conditions. ​ In the future, we may require capital to fund acquisitions or to improve or support our ongoing operations and debt structure, particularly in light of economic conditions resulting from the war in Ukraine, the Houthi conflict in the Red Sea, the Israel-Hamas war, and the trajectory of China’s economic recovery.
Our quarterly dividend policy and declaration and payment of dividends are subject to legally available funds, compliance with applicable law and contractual obligations (including our credit facility) and our Board’s determination that each declaration and payment is at that time in the best interests of the Company and its shareholders after its review of our financial performance. ​ In connection with our new dividend policy, we have paid down additional indebtedness under our credit facilities and utilized the $450 Million Credit Facility to refinance our two prior credit facilities as noted above. ​ The declaration and payment of any dividend or any stock repurchase is subject to the discretion of our Board of Directors.
Our quarterly dividend policy and declaration and payment of dividends are subject to legally available funds, compliance with applicable law and contractual obligations (including our credit facilities) and our Board’s determination that each declaration and payment is at that time in the best interests of the Company and its shareholders after its review of our financial performance. ​ In connection with our comprehensive value strategy, we have paid down additional indebtedness under our credit facilities and amended, extended and upsized our existing $450 Million Credit Facility with the $500 Million Revolver. ​ The declaration and payment of any dividend or any stock repurchase is subject to the discretion of our Board of Directors.
The following table demonstrates our calculation of EBITDA and provides a reconciliation of EBITDA to net income attributable to Genco Shipping & Trading Limited for each of the periods presented above: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended ​ December 31, ​ 2022 2021 Net income attributable to Genco Shipping & Trading Limited ​ $ 158,576 $ 182,007 ​ Net interest expense ​ 8,052 ​ 15,203 ​ Income tax expense ​ — ​ — ​ Depreciation and amortization ​ 60,190 ​ 56,231 ​ ​ ​ ​ ​ ​ ​ ​ ​ EBITDA (1) ​ $ 226,818 $ 253,441 ​ ​ Results of Operations ​ VOYAGE REVENUES- ​ Our revenues are driven primarily by the number of vessels in our fleet, the number of days during which our vessels operate, the type of fixture our vessels are chartered on (spot market voyage charters or fixed rate time charters), and the amount of daily charterhire or freight rates that our vessels earn, that, in turn, are affected by a number of factors, including: ​ ● the duration of our charters; ​ ● our decisions relating to vessel acquisitions and disposals; ​ ● the amount of time that we spend positioning our vessels; ​ ● the amount of time that our vessels spend in drydock undergoing repairs; ​ ● maintenance and upgrade work; ​ ● the age, condition and specifications of our vessels; ​ ● levels of supply and demand in the drybulk shipping industry; and ​ ● other factors affecting spot market charter rates for drybulk carriers. ​ During 2022, voyage revenues decreased by $10.2 million, or 1.9%, to $536.9 million as compared to $547.1 million during 2021.
The following table demonstrates our calculation of EBITDA and provides a reconciliation of EBITDA to net income attributable to Genco Shipping & Trading Limited for each of the periods presented above: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended ​ December 31, ​ 2023 2022 Net (loss) income attributable to Genco Shipping & Trading Limited ​ $ (12,870) $ 158,576 ​ Net interest expense ​ 6,113 ​ 8,052 ​ Income tax expense ​ — ​ — ​ Depreciation and amortization ​ 66,465 ​ 60,190 ​ ​ ​ ​ ​ ​ ​ ​ ​ EBITDA (1) ​ $ 59,708 $ 226,818 ​ ​ Results of Operations ​ VOYAGE REVENUES- ​ Our revenues are driven primarily by the number of vessels in our fleet, the number of days during which our vessels operate, the type of fixture our vessels are chartered on (spot market voyage charters or fixed rate time charters), and the amount of daily charterhire or freight rates that our vessels earn, that, in turn, are affected by a number of factors, including: ​ ● the duration of our charters; ​ ● our decisions relating to vessel acquisitions and disposals; ​ ​ ● the amount of time that we spend positioning our vessels; ​ ​ ● the amount of time that our vessels spend in drydock undergoing repairs, which is expected to be higher during 2025 due to scheduled drydockings; ​ ​ ● maintenance and upgrade work; ​ ​ ● the age, condition and specifications of our vessels; ​ ​ ● levels of supply and demand in the drybulk shipping industry; and ​ ​ ● other factors affecting spot market charter rates for drybulk carriers. ​ 49 ​ Table of Contents ​ During 2023, voyage revenues decreased by $153.1 million, or 28.5%, to $383.8 million as compared to $536.9 million during 2022.
Higher repairs and maintenance expenses during drydocking for vessels which are over 15 years old typically result in a higher number of off-hire days depending on the condition of the vessel. ​ During 2022 and 2021, we incurred a total of $25.8 million and $4.9 million of drydocking costs, respectively, excluding costs incurred during drydocking that were capitalized to vessel assets or vessel equipment. ​ We completed the drydockings for 13 of our vessels, of which three began during the further quarter of 2021 and did not complete until the first quarter of 2022.
Higher repairs and maintenance expenses during drydocking for vessels which are over 15 years old typically result in a higher number of off-hire days depending on the condition of the vessel. ​ During 2023 and 2022, we incurred a total of $10.9 million and $25.8 million of drydocking costs, respectively, excluding costs incurred during drydocking that were capitalized to vessel assets or vessel equipment. ​ We completed the drydocking of five of our vessels during 2023, one of which began during the fourth quarter of 2022.
If the values of our vessels were to decline as a result of COVID-19 or otherwise, we may not satisfy this collateral maintenance requirement.
If the values of our vessels were to decline as a result of the various geopolitical factors previously mentioned or otherwise, we may not satisfy this collateral maintenance requirement.
Our fleet currently consists of 44 drybulk carriers, including 17 Capesize drybulk carriers, 15 Ultramax drybulk carriers, and twelve Supramax drybulk carriers with an aggregate carrying capacity of approximately 4,636,000 deadweight tons (“dwt”). The average age of our current fleet is approximately 11.0 years.
Our fleet currently consist of 45 drybulk carriers, including 18 Capesize drybulk carriers, 15 Ultramax drybulk carriers, and twelve Supramax drybulk carriers with an aggregate carrying capacity of approximately 4,828,000 deadweight tons (“dwt”). The average age of our current fleet is approximately 11.7 years.
Refer to Note 17 — Stock-Based Compensation in our Consolidated Financial Statements. General and administrative expenses also include legal and professional fees associated with our credit facilities, which are not capitalizable to deferred financing costs.
Refer to Note 16 — Stock-Based Compensation in our Consolidated Financial Statements. General and administrative expenses also include legal and professional fees associated with our credit facilities, which are not capitalizable to deferred financing costs. We also incur general and administrative expenses for our overseas offices located in Singapore and Copenhagen.
Similarly, an increase in the useful life of a drybulk vessel would also decrease the annual depreciation charge. Comparatively, a decrease in the useful life of a drybulk vessel or in its residual value would have the effect of increasing the annual depreciation charge.
Comparatively, a decrease in the useful life of a 59 ​ Table of Contents drybulk vessel or in its residual value would have the effect of increasing the annual depreciation charge.
As of December 31, 2022, only the Capesize and certain of the Ultramax vessels had indicators of impairment and the estimated future undiscounted cash flows for those Capesize and Ultramax vessels exceeded each of those vessels’ carrying values by a margin of approximately 29% to 116% of the carrying value.
As of December 31, 2023, only eight of our Capesize vessels had indicators of impairment and the estimated future undiscounted cash flows for those Capesize vessels exceeded each of those vessels’ carrying values by a margin of approximately 15% to 30% of the carrying value.
We have not entered into any FFAs as of December 31, 2022 and 2021. ​ Interest Rates ​ The effective interest rate for the years ended December 31, 2022 and 2021 include interest rates associated with the interest expense for our various credit facilities including the following: the $450 Million Credit Facility, as well as the $133 Million Credit Facility and the $495 Million Credit Facility (until these facilities were refinanced with the $450 Million Credit Facility on August 31, 2021). ​ The effective interest rate for the aforementioned credit facilities, including the cost associated with unused commitment fees, if applicable, was 4.63% and 3.22% during 2022 and 2021, respectively.
We have not entered into any FFAs as of December 31, 2023 and 2022. ​ Interest Rates ​ The effective interest rate for the years ended December 31, 2023 and 2022 include interest rates associated with the interest expense for our various credit facilities, including the following: the $500 Million Revolver and the $450 Million Credit Facility (until the $450 Million Credit Facility was amended to become the $500 Million Revolver on November 29, 2023). ​ The effective interest rate for the aforementioned credit facilities, including the cost associated with unused commitment fees, if applicable, was 8.29% and 4.63% during 2023 and 2022, respectively.
The increase was primarily due to higher nonvested stock amortization expense. ​ TECHNICAL MANAGEMENT FEES- ​ Technical management fees include the direct costs incurred by GSSM for the technical management of the vessels under its management.
The increase was primarily due to higher nonvested stock amortization expense. ​ TECHNICAL MANAGEMENT FEES- ​ Technical management fees include the direct costs incurred by GSSM for the technical management of the vessels under its management. ​ Technical management fees were $4.0 million and $3.3 million during 2023 and 2022, respectively.
Given anticipated capital expenditures related to drydockings and the installation of ballast water treatment systems (“BWTS”) and fuel efficiency upgrade costs of $12.1 million and $23.4 million during 2023 and 2024, respectively, as well as any quarterly dividend payments, we anticipate to continue to have significant cash expenditures. Refer to “Capital Expenditures” below for further details.
Given anticipated capital expenditures related to drydockings and fuel efficiency upgrade costs of $22.3 million and $35.4 million during 2024 and 2025, respectively, as well as any quarterly dividend payments, we anticipate to continue to have significant cash expenditures. Refer to “Capital Expenditures” below for further details.
Comparatively, the amount by which the carrying value at December 31, 2021 of eleven of our Capesize vessels exceeded the valuation of such vessels for covenant compliances ranged, on an individual vessel basis, from $4.3 million to $7.0 million per vessel, and $62.7 million on an aggregate fleet basis.
Comparatively, the amount by which the carrying value at December 31, 2022 of 16 of our Capesize vessels and one of our Ultramax vessels exceeded the valuation of such vessels for covenant compliances ranged, on an individual vessel basis, from $0.1 million to $11.9 million per vessel, and $130.0 million on an aggregate fleet basis.
Rates in 2022 continued to exhibit strength, particularly early in the year, before various factors described earlier led to a softening rate environment during the second half of the year. ​ When indicators of impairment are present and our estimate of future undiscounted cash flows for any vessel is lower than the vessel’s carrying value, the carrying value is written down, by recording a charge to operations, to the vessel’s fair market value if the fair market value is lower than the vessel’s carrying value. ​ We determined that as of December 31, 2022, the future income streams expected to be earned by such vessels over their remaining operating lives and upon disposal on an undiscounted basis would be sufficient to recover their carrying values.
Rates in 2023 declined from 2021 and 2022 highs, but were firm from a historical perspective. ​ When indicators of impairment are present and our estimate of future undiscounted cash flows for any vessel is lower than the vessel’s carrying value, the carrying value is written down, by recording a charge to operations, to the vessel’s fair market value if the fair market value is lower than the vessel’s carrying value. ​ We determined that as of December 31, 2023, the future income streams expected to be earned by such vessels over their remaining operating lives and upon disposal on an undiscounted basis would be sufficient to recover their carrying values.
Currently, there are no mandatory debt repayments until we must repay $171.0 million in 2026. Although we do not have any mandatory debt repayments until 2026, we intend to continue to pay down debt on a voluntary basis with a medium term goal of zero net debt.
Although we do not have any mandatory debt repayments until 2028, we intend to continue to pay down debt on a voluntary basis with a medium-term goal of zero net debt.
This decrease in cash provided by operating activities was primarily due to lower revenue earned by our major bulk vessels partially offset by higher rates achieved by our minor bulk vessels, changes in working capital, as well as an increase in drydocking costs incurred.
This decrease in cash provided by operating activities was primarily due to lower net revenue earned by our minor and major bulk vessels, as well as changes in working capital.
The potential impacts of COVID-19 and the war in Ukraine are unpredictable, and the actual amount of our DVOE could be higher or lower than budgeted as a result. ​ CHARTER HIRE EXPENSES- ​ Charter hire expenses decreased by $9.2 million from $36.4 million during 2021 to $27.1 million during 2022.
The potential impacts of the war in Ukraine, the Israel-Hamas war, and the Houthi conflict in the Red Sea among other potential macroeconomic events, are unpredictable, and the actual amount of our DVOE could be higher or lower than budgeted as a result. ​ CHARTER HIRE EXPENSES- ​ Charter hire expenses decreased by $18.0 million from $27.1 million during 2022 to $9.1 million during 2023.
Heightened economic uncertainty and the potential for renewed drybulk market weakness as a result of the COVID-19 pandemic or the war in Ukraine and related economic conditions may result in our suspension, reduction, or termination of future quarterly dividends. ​ U.S. Federal Income Tax Treatment of Dividends ​ U.S. Holders ​ For purposes of this discussion, the term “U.S.
Heightened economic uncertainty and the potential for renewed drybulk market weakness as a result of the war in Ukraine, the Israel-Hamas war, the Houthi conflict in the Red Sea, and related economic conditions may result in our suspension, reduction, or termination of future quarterly dividends. ​ 54 ​ Table of Contents U.S. Federal Income Tax Treatment of Dividends ​ U.S.
Refer to Note 7 — Debt of our Consolidated Financial Statements for further details. ​ Interest Rate Swap Agreements, Forward Freight Agreements and Currency Swap Agreements ​ At December 31, 2022, we had three interest rate cap agreements to manage interest costs and the risk associated with changing interest rates.
Refer to Note 7 — Debt in our Consolidated Financial Statements for further details regarding the terms of the $500 Million Revolver, which information is incorporated herein by reference. ​ Interest Rate Swap Agreements, Forward Freight Agreements and Currency Swap Agreements ​ At December 31, 2023, we had one interest rate cap agreement to manage interest costs and the risk associated with changing interest rates.
These costs do not include drydock expense items that are reflected in vessel operating expenses. ​ 58 ​ Table of Contents Actual length of drydocking will vary based on the condition of the vessel, yard schedules and other factors.
Actual costs will vary based on various factors, including where the drydockings are actually performed. We expect to fund these costs with cash on hand. These costs do not include drydock expense items that are reflected in vessel operating expenses. ​ Actual length of drydocking will vary based on the condition of the vessel, yard schedules and other factors.
The interest rate on the debt, excluding unused commitment fees, ranged from 2.26% to 6.54% and 2.24% to 3.48% during 2022 and 2021, respectively. ​ Capital Expenditures ​ We make capital expenditures from time to time in connection with our vessel acquisitions.
The effective interest rate does not include the effect of any interest rate cap agreements. The interest rate on the debt, excluding unused commitment fees, ranged from 6.43% to 7.58% and 2.26% to 6.54% during 2023 and 2022, respectively. ​ Capital Expenditures ​ We make capital expenditures from time to time in connection with our vessel acquisitions.
TCE rate is a common shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charterhire rates for vessels on voyage charters are generally not expressed in per-day amounts while charterhire rates for vessels on time charters generally are expressed in such amounts. ​ ​ 45 ​ Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Entire Fleet ​ Major Bulk ​ Minor Bulk ​ ​ ​ ​ For the Year Ended ​ For the Year Ended ​ For the Year Ended ​ ​ ​ ​ December 31, ​ December 31, ​ December 31, ​ ​ ​ ​ 2022 2021 ​ 2022 2021 ​ 2022 2021 ​ Voyage revenues (in thousands) ​ $ 536,934 ​ $ 547,129 ​ $ 191,934 ​ $ 240,271 ​ $ 345,000 ​ $ 306,858 ​ ​ Voyage expenses (in thousands) ​ 153,889 ​ 146,182 ​ 69,166 ​ 73,374 ​ 84,723 ​ 72,808 ​ ​ Charter hire expenses (in thousands) ​ ​ 27,130 ​ ​ 36,370 ​ ​ — ​ ​ (100) ​ ​ 27,130 ​ ​ 36,470 ​ ​ Realized gain on fuel hedges (in thousands) ​ ​ 1,631 ​ ​ — ​ ​ — ​ ​ — ​ ​ 1,631 ​ ​ — ​ ​ ​ ​ 357,546 ​ 364,577 ​ 122,768 ​ 166,997 ​ 234,778 ​ 197,580 ​ ​ Total available days for owned fleet ​ 15,008 ​ 14,940 ​ 5,458 ​ 6,119 ​ 9,550 ​ 8,822 ​ ​ Total TCE rate ​ $ 23,824 ​ $ 24,402 ​ $ 22,492 ​ $ 27,293 ​ $ 24,585 ​ $ 22,397 ​ ​ ​ (8) Daily vessel operating expenses .
TCE rate is a common shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charterhire rates for vessels on voyage charters are generally not expressed in per-day amounts while charterhire rates for vessels on time charters generally are expressed in such amounts. ​ ​ ​ 46 ​ Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Entire Fleet ​ Major Bulk ​ Minor Bulk ​ ​ ​ ​ For the Year Ended ​ For the Year Ended ​ For the Year Ended ​ ​ ​ ​ December 31, ​ December 31, ​ December 31, ​ ​ ​ ​ 2023 2022 ​ 2023 2022 ​ 2023 2022 ​ Voyage revenues (in thousands) ​ $ 383,825 ​ $ 536,934 ​ $ 190,176 ​ $ 191,934 ​ $ 193,649 ​ $ 345,000 ​ ​ Voyage expenses (in thousands) ​ 142,971 ​ 153,889 ​ 77,968 ​ 69,166 ​ 65,003 ​ 84,723 ​ ​ Charter hire expenses (in thousands) ​ ​ 9,135 ​ ​ 27,130 ​ ​ — ​ ​ — ​ ​ 9,135 ​ ​ 27,130 ​ ​ Realized gain on fuel hedges (in thousands) ​ ​ 202 ​ ​ 1,631 ​ ​ — ​ ​ — ​ ​ 202 ​ ​ 1,631 ​ ​ ​ ​ 231,921 ​ 357,546 ​ 112,208 ​ 122,768 ​ 119,713 ​ 234,778 ​ ​ Total available days for owned fleet ​ 15,706 ​ 15,008 ​ 6,138 ​ 5,458 ​ 9,568 ​ 9,550 ​ ​ Total TCE rate ​ $ 14,766 ​ $ 23,824 ​ $ 18,280 ​ $ 22,492 ​ $ 12,512 ​ $ 24,585 ​ ​ ​ (8) Daily vessel operating expenses .
However, neither such valuation nor the carrying value in the table below reflects the value of long-term time charters, if any, related to some of our vessels. ​ 60 ​ Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying Value (U.S. ​ ​ ​ ​ ​ ​ dollars in ​ ​ ​ ​ ​ ​ thousands) as of ​ ​ Year December 31, December 31, Vessels Year Built Acquired 2022 2021 $450 Million Credit Facility ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Genco Commodus 2009 2009 ​ $ 33,227 ​ $ 35,200 ​ Genco Maximus 2009 2009 ​ 33,275 ​ 35,215 ​ Genco Claudius ​ 2010 2009 ​ 34,850 ​ 36,872 ​ Baltic Bear 2010 2010 ​ ​ 34,682 ​ ​ 36,666 ​ Baltic Wolf 2010 2010 ​ 35,004 ​ 36,948 ​ Genco Lion 2009 2013 ​ 29,853 ​ 29,971 ​ Genco Tiger ​ 2010 ​ 2013 ​ ​ 28,207 ​ ​ 28,658 ​ Baltic Scorpion 2015 2015 ​ 22,448 ​ 23,456 ​ Baltic Mantis 2015 2015 ​ 22,689 ​ 23,701 ​ Genco Hunter 2007 2007 ​ 7,769 ​ 7,788 ​ Genco Warrior 2005 2007 ​ 6,501 ​ 6,909 ​ Genco Aquitaine 2009 2010 ​ 8,254 ​ 8,588 ​ Genco Ardennes 2009 2010 ​ 8,258 ​ 8,591 ​ Genco Auvergne 2009 2010 ​ 8,270 ​ 8,597 ​ Genco Bourgogne 2010 2010 ​ 8,943 ​ 9,299 ​ Genco Brittany 2010 2010 ​ 8,931 ​ 9,303 ​ Genco Languedoc 2010 2010 ​ 8,932 ​ 9,304 ​ Genco Picardy 2005 2010 ​ 6,899 ​ 7,347 ​ Genco Pyrenees 2010 2010 ​ 8,979 ​ 9,311 ​ Genco Rhone 2011 2011 ​ 10,203 ​ 10,512 ​ Genco Constantine 2008 2008 ​ 31,638 ​ 32,152 ​ Genco Augustus 2007 2007 ​ 29,321 ​ 30,822 ​ Genco London 2007 2007 ​ 29,181 ​ 29,708 ​ Genco Titus 2007 2007 ​ 29,823 ​ 30,503 ​ Genco Tiberius 2007 2007 ​ 29,455 ​ 30,161 ​ Genco Hadrian 2008 2008 ​ 31,623 ​ 32,570 ​ Genco Predator 2005 2007 ​ 6,816 ​ 7,266 ​ Baltic Hornet 2014 2014 ​ 21,058 ​ 22,022 ​ Baltic Wasp 2015 2015 ​ 21,300 ​ 22,275 ​ Genco Endeavour ​ 2015 ​ 2018 ​ 40,498 ​ 42,207 ​ Genco Resolute ​ 2015 ​ 2018 ​ 40,852 ​ 42,507 ​ Genco Columbia ​ 2016 ​ 2018 ​ 23,480 ​ 24,484 ​ Genco Weatherly ​ 2014 ​ 2018 ​ 18,939 ​ 19,806 ​ Genco Liberty ​ 2016 ​ 2018 ​ 43,942 ​ 45,760 ​ Genco Defender ​ 2016 ​ 2018 ​ 43,964 ​ 45,792 ​ Genco Magic ​ 2014 ​ 2020 ​ ​ 13,872 ​ ​ 14,381 ​ Genco Vigilant ​ 2015 ​ 2021 ​ ​ 14,901 ​ ​ 15,476 ​ Genco Freedom ​ 2015 ​ 2021 ​ ​ 14,996 ​ ​ 15,577 ​ Genco Enterprise ​ 2016 ​ 2021 ​ ​ 19,806 ​ ​ 20,591 ​ TOTAL ​ ​ ​ ​ ​ $ 871,639 ​ $ 906,296 ​ Unencumbered ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Genco Madeleine ​ 2014 ​ 2021 ​ ​ 22,253 ​ ​ 23,266 ​ Genco Constellation ​ 2017 ​ 2021 ​ ​ 24,897 ​ ​ 25,574 ​ Genco Mayflower ​ 2017 ​ 2021 ​ ​ 25,328 ​ ​ 26,005 ​ Genco Laddey 2022 2022 ​ 29,326 ​ — ​ Genco Mary 2022 2022 ​ 29,367 ​ — ​ ​ ​ ​ ​ ​ ​ $ 131,171 ​ $ 74,845 ​ Consolidated Total ​ ​ ​ ​ ​ $ 1,002,810 ​ $ 981,141 ​ ​ 61 ​ Table of Contents If we were to sell a vessel or hold a vessel for sale, and the carrying value of the vessel were to exceed its fair market value, net of commission, we would record a loss in the amount of the difference.
Vessels have been grouped according to their collateralized status as of December 31, 2023 and does not include any vessels held for sale. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying Value (U.S. ​ ​ ​ ​ ​ ​ dollars in ​ ​ ​ ​ ​ ​ thousands) as of ​ ​ Year December 31, December 31, Vessels Year Built Acquired 2023 2022 $500 Million Revolver ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Genco Commodus 2009 2009 ​ $ — ​ $ 33,227 ​ Genco Maximus 2009 2009 ​ — ​ 33,275 ​ Genco Claudius ​ 2010 2009 ​ — ​ 34,850 ​ 60 ​ Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying Value (U.S. ​ ​ ​ ​ ​ ​ dollars in ​ ​ ​ ​ ​ ​ thousands) as of ​ ​ Year December 31, December 31, Vessels Year Built Acquired 2023 2022 Baltic Bear 2010 2010 ​ ​ 32,724 ​ ​ 34,682 ​ Baltic Wolf 2010 2010 ​ 33,078 ​ 35,004 ​ Genco Lion 2012 2013 ​ 28,508 ​ 29,853 ​ Genco Tiger ​ 2011 ​ 2013 ​ ​ 26,954 ​ ​ 28,207 ​ Baltic Scorpion 2015 2015 ​ 21,440 ​ 22,448 ​ Baltic Mantis 2015 2015 ​ 21,677 ​ 22,689 ​ Genco Hunter 2007 2007 ​ 7,564 ​ 7,769 ​ Genco Warrior 2005 2007 ​ 6,211 ​ 6,501 ​ Genco Aquitaine 2009 2010 ​ 7,948 ​ 8,254 ​ Genco Ardennes 2009 2010 ​ 7,955 ​ 8,258 ​ Genco Auvergne 2009 2010 ​ 7,971 ​ 8,270 ​ Genco Bourgogne 2010 2010 ​ 8,580 ​ 8,943 ​ Genco Brittany 2010 2010 ​ 8,590 ​ 8,931 ​ Genco Languedoc 2010 2010 ​ 8,588 ​ 8,932 ​ Genco Picardy 2005 2010 ​ 6,972 ​ 6,899 ​ Genco Pyrenees 2010 2010 ​ 8,641 ​ 8,979 ​ Genco Rhone 2011 2011 ​ 9,792 ​ 10,203 ​ Genco Constantine 2008 2008 ​ 29,377 ​ 31,638 ​ Genco Augustus 2007 2007 ​ 27,052 ​ 29,321 ​ Genco London 2007 2007 ​ 27,295 ​ 29,181 ​ Genco Titus 2007 2007 ​ 27,856 ​ 29,823 ​ Genco Tiberius 2007 2007 ​ 27,127 ​ 29,455 ​ Genco Hadrian 2008 2008 ​ 29,671 ​ 31,623 ​ Genco Predator 2005 2007 ​ 6,888 ​ 6,816 ​ Baltic Hornet 2014 2014 ​ 20,084 ​ 21,058 ​ Baltic Wasp 2015 2015 ​ 20,326 ​ 21,300 ​ Genco Endeavour ​ 2015 ​ 2018 ​ 39,022 ​ 40,498 ​ Genco Resolute ​ 2015 ​ 2018 ​ 39,177 ​ 40,852 ​ Genco Columbia ​ 2016 ​ 2018 ​ 22,455 ​ 23,480 ​ Genco Weatherly ​ 2014 ​ 2018 ​ 18,118 ​ 18,939 ​ Genco Liberty ​ 2016 ​ 2018 ​ 42,162 ​ 43,942 ​ Genco Defender ​ 2016 ​ 2018 ​ 42,165 ​ 43,964 ​ Genco Magic ​ 2014 ​ 2020 ​ ​ 13,373 ​ ​ 13,872 ​ Genco Vigilant ​ 2015 ​ 2021 ​ ​ 14,323 ​ ​ 14,901 ​ Genco Freedom ​ 2015 ​ 2021 ​ ​ 14,407 ​ ​ 14,996 ​ Genco Enterprise ​ 2016 ​ 2021 ​ ​ 18,996 ​ ​ 19,806 ​ Genco Madeleine ​ 2014 ​ 2021 ​ ​ 21,209 ​ ​ 22,253 ​ Genco Constellation ​ 2017 ​ 2021 ​ ​ 23,872 ​ ​ 24,897 ​ Genco Mayflower ​ 2017 ​ 2021 ​ ​ 24,251 ​ ​ 25,328 ​ Genco Laddey ​ 2022 2022 ​ 28,299 ​ 29,326 ​ Genco Mary ​ 2022 2022 ​ 28,336 ​ 29,367 ​ Genco Ranger ​ 2016 ​ 2023 ​ ​ 43,108 ​ ​ — ​ TOTAL ​ ​ ​ ​ ​ $ 902,142 ​ $ 1,002,810 ​ Unencumbered ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Genco Reliance 2016 ​ 2023 ​ $ 42,972 ​ $ — ​ ​ ​ ​ ​ ​ ​ $ 42,972 ​ $ — ​ Consolidated Total ​ ​ ​ ​ ​ $ 945,114 ​ $ 1,002,810 ​ ​ If we were to sell a vessel or hold a vessel for sale, and the carrying value of the vessel were to exceed its fair market value, net of costs to sell, we would record a loss in the amount of the difference.
Net interest expense during the years ended December 31, 2022 and 2021 consisted primarily of interest expense under our credit facilities and amortization of deferred financing costs for those facilities. The decrease was primarily due a decrease in interest expense due to a decrease in the average outstanding debt partially offset by higher interest rates.
Interest expense during 2023 and 2022 consisted primarily of interest expense under our credit facilities and amortization of deferred financing costs for those facilities. The decrease was primarily a result of lower outstanding debt and settlement payments received our interest rate cap agreements partially offset by higher interest rates.
The TCE for our minor bulk vessels increased by 9.8% from $22,397 a day during 2021 to $24,585 a day during 2022 primarily a result of higher rates achieved by our Ultramax and Supramax vessels. ​ For 2022 and 2021, we had ownership days of 16,049.9 days and 15,176.5 days, respectively.
The TCE for our minor bulk vessels decreased by 49.1% from $24,585 a day during 2022 to $12,512 a day during 2023 primarily a result of lower rates achieved by our Ultramax and Supramax vessels, offset by lower voyage expenses. ​ For 2023 and 2022, we had ownership days of 16,135.2 days and 16,049.9 days, respectively.
The TCE for our major bulk vessels decreased by 17.6% from $27,293 a day during 2021 to $22,492 a day during 2022. This decrease was primarily a result of lower rates achieved by our Capesize vessels.
The TCE for our major bulk vessels decreased by 18.7% from $22,492 a day during 2022 to $18,280 a day during 2023. This decrease was primarily a result of higher voyage expenses incurred by our Capesize vessels.
Furthermore, under our comprehensive IMO 2023 compliance plan, we intend to install energy saving devices and apply high performance paint systems in order to reduce fuel consumption and emissions among other key initiatives, on select vessels. We plan to undertake most, if not all, of these initiatives while our vessels undergo their regularly scheduled drydocking.
The upgrades have been successfully installed during previous drydockings. ​ Under our comprehensive IMO 2023 compliance plan, we have and intend to install energy saving devices and apply high performance paint systems in order to reduce fuel consumption and emissions among other key initiatives, on select vessels.
These decreases in cash provided by operating activities were partially offset by lower interest expense. ​ Net cash used in investing activities during the years ended December 31, 2022 and 2021 was $55.0 million and $67.6 million, respectively. The decrease was primarily due to a $63.2 million decrease in the purchase of vessels.
These decreases were partially offset by a decrease in drydocking costs incurred during 2023 as compared to 2022. ​ Net cash used in investing activities during the years ended December 31, 2023 and 2022 was $91.6 million and $55.0 million, respectively.
Refer to Note 7 — Debt. ​ As of December 31, 2022, we were in compliance with all financial covenants under the $450 Million Credit facility. ​ Dividends ​ We disclosed on April 19, 2021 that, on management’s recommendation, our Board of Directors adopted a new quarterly dividend policy for dividends payable which commenced in the first quarter of 2022 in respect of our financial results for the fourth quarter of 2021.
Refer to Note 7 — Debt in our Consolidated Financial Statements for further details regarding the terms of the $500 Million Revolver, which information is incorporated herein by reference. ​ In the fourth quarter of 2023, we drew down $65 million under our revolver to partially fund the acquisition of the Genco Ranger and Genco Reliance, 2016-built Capesize vessels. ​ As of December 31, 2023, we were in compliance with all financial covenants under the $500 Million Revolver. ​ 53 ​ Table of Contents Dividends ​ We disclosed on April 19, 2021 that, on management’s recommendation, our Board of Directors adopted a quarterly dividend policy for dividends payable which commenced in the first quarter of 2022 in respect of our financial results for the fourth quarter of 2021.
In the chart below, we list each of our vessels, the year it was built, the year we acquired it, and its carrying value as of December 31, 2022 and 2021.
However, neither such valuation nor the carrying value in the table below reflects the value of long-term time charters, if any, related to some of our vessels. ​ In the chart below, we list each of our vessels, the year it was built, the year we acquired it, and its carrying value as of December 31, 2023 and 2022.
Such resources include unrestricted cash and cash equivalents of $58.1 million as of December 31, 2022 in addition to the $212.9 million availability under the revolver of the $450 Million Credit Facility as of December 31, 2022, which compares to a minimum liquidity requirement under our credit facility of approximately $22 million as of the date of this report.
Such resources include unrestricted cash and cash equivalents of $46.5 million as of December 31, 2023 in addition to the $294.8 million availability under the $500 Million Revolver as of December 31, 2023, which compares to a minimum liquidity requirement under our credit facility of approximately $23 million as of the date of this report, as well as the net proceeds from our agreed upon vessel sales of approximately $55 52 ​ Table of Contents million.
The decrease was primarily due to the savings realized by transferring the management of the vessels in our fleet to GSSM during the second half of 2021 and in 2022. ​ DEPRECIATION AND AMORTIZATION- ​ We depreciate the cost of our vessels on a straight-line basis over the expected useful life of each vessel.
The variance was due to the timing of expenses during the year. 51 ​ Table of Contents ​ DEPRECIATION AND AMORTIZATION- ​ We depreciate the cost of our vessels on a straight-line basis over the expected useful life of each vessel.
The decrease was primarily due to the refinancing of our prior credit facilities with the $450 Million Credit Facility on August 31, 2021. During 2022, the decrease in total net cash used in financing activities related to our credit facilities was $128.2 million as compared to 2021.
During 2023, the decrease in total net cash used in financing activities related to our credit facilities was $104.0 million as compared to 2022.
GAAP, we would not record a loss if the fair market value of a vessel (excluding its charter) is below our carrying value unless and until we determine to sell that vessel or the vessel is impaired as discussed below under the heading “Impairment of long-lived assets.” ​ There were no impairment losses during the years ended December 31, 2022 and 2021. ​ Under our credit facility, we regularly submit to the lenders valuations of our vessels on an individual charter free basis in order to evidence our compliance with the collateral maintenance covenants under our bank credit facility.
GAAP, we would not record a loss if the fair market value of a vessel (excluding its charter) is below our carrying value unless and until we determine to sell that vessel or the vessel is impaired as discussed below under the heading “Impairment of long-lived assets.” ​ During 2023, we recorded losses of $41.7 million related to the impairment of vessel assets.
This increase was primarily due to an increase in drydocking amortization expense for the major and minor bulk vessels that completed their drydockings during 2022.
This increase was primarily due to an increase in drydocking amortization expense for the major bulk vessels that completed their drydockings during the second quarter of 2022 through the first quarter of 2023. ​ IMPAIRMENT OF VESSEL ASSETS- ​ During 2023, we recorded $41.7 million of impairment of vessel assets. This included impairment losses for three of our Capesize vessels.
Dollars in thousands, except for per share amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Voyage revenues ​ $ 536,934 ​ $ 547,129 ​ $ (10,195) (1.9) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total revenues ​ 536,934 ​ 547,129 ​ (10,195) (1.9) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating Expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Voyage expenses ​ 153,889 ​ 146,182 ​ 7,707 5.3 % Vessel operating expenses ​ 99,469 ​ 82,089 ​ 17,380 21.2 % Charter hire expenses ​ ​ 27,130 ​ ​ 36,370 ​ ​ (9,240) ​ (25.4) % General and administrative expenses (inclusive of nonvested stock amortization expense of $3,242 and $2,267, respectively) ​ 25,708 ​ 24,454 ​ 1,254 5.1 % Technical management fees ​ ​ 3,310 ​ ​ 5,612 ​ ​ (2,302) ​ (41.0) % Depreciation and amortization ​ 60,190 ​ 56,231 ​ 3,959 7.0 % Gain on sale of vessels ​ — ​ (4,924) ​ 4,924 (100.0) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses ​ 369,696 ​ 346,014 ​ 23,682 6.8 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income ​ 167,238 ​ 201,115 ​ (33,877) (16.8) % Other expense, net ​ (7,874) ​ (19,070) ​ 11,196 (58.7) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ 159,364 ​ 182,045 ​ (22,681) (12.5) % Less: Net income attributable to noncontrolling interest ​ ​ 788 ​ ​ 38 ​ 750 ​ 1,973.7 % Net income attributable to Genco Shipping & Trading Limited ​ ​ 158,576 ​ ​ 182,007 ​ ​ (23,431) ​ (12.9) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per share-basic ​ $ 3.74 ​ $ 4.33 ​ $ (0.59) (13.6) % Earnings per share-diluted ​ $ 3.70 ​ $ 4.27 ​ $ (0.57) (13.3) % Weighted average common shares outstanding-basic ​ 42,412,722 ​ 42,060,996 ​ ​ 351,726 0.8 % Weighted average common shares outstanding-diluted ​ 42,915,496 ​ 42,588,871 ​ ​ 326,625 0.8 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended December 31, ​ ​ ​ ​ ​ ​ 2022 2021 Change % Change Balance Sheet Data: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (U.S.
Dollars in thousands, except for per share amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Voyage revenues ​ $ 383,825 ​ $ 536,934 ​ $ (153,109) (28.5) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total revenues ​ 383,825 ​ 536,934 ​ (153,109) (28.5) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating Expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Voyage expenses ​ 142,971 ​ 153,889 ​ (10,918) (7.1) % Vessel operating expenses ​ 97,093 ​ 99,469 ​ (2,376) (2.4) % Charter hire expenses ​ ​ 9,135 ​ ​ 27,130 ​ ​ (17,995) ​ (66.3) % General and administrative expenses (inclusive of nonvested stock amortization expense of $5,530 and $3,242, respectively) ​ 28,268 ​ 25,708 ​ 2,560 10.0 % Technical management fees ​ ​ 4,021 ​ ​ 3,310 ​ ​ 711 ​ 21.5 % Depreciation and amortization ​ 66,465 ​ 60,190 ​ 6,275 10.4 % Impairment of vessel assets ​ ​ 41,719 ​ ​ — ​ ​ 41,719 ​ 100.0 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses ​ 389,672 ​ 369,696 ​ 19,976 5.4 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating (loss) income ​ (5,847) ​ 167,238 ​ (173,085) (103.5) % Other expense, net ​ (6,509) ​ (7,874) ​ 1,365 (17.3) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net (loss) income ​ (12,356) ​ 159,364 ​ (171,720) (107.8) % Less: Net income attributable to noncontrolling interest ​ ​ 514 ​ ​ 788 ​ (274) ​ (34.8) % Net (loss) income attributable to Genco Shipping & Trading Limited ​ ​ (12,870) ​ ​ 158,576 ​ ​ (171,446) ​ (108.1) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net (loss) earnings per share-basic ​ $ (0.30) ​ $ 3.74 ​ $ (4.04) (108.0) % Net (loss) earnings per share-diluted ​ $ (0.30) ​ $ 3.70 ​ $ (4.00) (108.1) % Weighted average common shares outstanding-basic ​ 42,766,262 ​ 42,412,722 ​ ​ 353,540 0.8 % Weighted average common shares outstanding-diluted ​ 42,766,262 ​ 42,915,496 ​ ​ (149,234) (0.3) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended December 31, ​ ​ ​ ​ ​ ​ 2023 2022 Change % Change Balance Sheet Data: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (U.S.
Furthermore, we plan to upgrade a portion of our fleet with energy saving devices and apply high performance paint systems in order to reduce fuel consumption and emissions. ​ We estimate our capitalized drydocking costs, including capitalized costs incurred during drydocking related to vessel assets and vessel equipment, BWTS costs, fuel efficiency upgrades and scheduled off-hire days for our fleet through 2024 to be: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Estimated Drydocking Costs ​ Estimated BWTS Costs Estimated Fuel Efficiency Upgrade Costs ​ Estimated Off-hire Days ​ ​ (U.S. dollars in millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ $ 8.5 ​ $ 0.2 ​ $ 3.4 ​ 204 ​ 2024 ​ $ 19.4 ​ $ — ​ $ 4.0 ​ 385 ​ ​ The costs reflected are estimates based on drydocking our vessels in China.
The future estimated expenditures are included in the table below. 58 ​ Table of Contents ​ In addition to acquisitions that we may undertake in future periods, we will incur additional expenditures due to special surveys and drydockings for our fleet. . ​ We estimate our drydocking costs, including capitalized costs incurred during drydocking related to vessel assets and vessel equipment, ballast water treatment systems (“BWTS”) costs, fuel efficiency upgrades and scheduled off-hire days for our fleet through 2025 to be: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Estimated Drydocking Costs ​ Estimated BWTS Costs Estimated Fuel Efficiency Upgrade Costs ​ Estimated Off-hire Days ​ ​ (U.S. dollars in millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 ​ $ 18.1 ​ $ 1.1 ​ $ 3.1 ​ 290 ​ 2025 ​ $ 31.5 ​ $ 1.1 ​ $ 2.8 ​ 640 ​ ​ The costs reflected are estimates based on drydocking our vessels in China.
We may seek to accomplish any of these 52 ​ Table of Contents independently or in conjunction with one or more of these actions. However, if market conditions are unfavorable, we may be unable to accomplish any of the foregoing on acceptable terms or at all. ​ We entered into the $450 Million Credit Facility on August 3, 2021.
However, if market conditions are unfavorable, we may be unable to accomplish any of the foregoing on acceptable terms or at all. ​ On November 29, 2023, we entered into a fourth amendment to amend, extend and upsize our existing $450 Million Credit Facility and implement the $500 Million Revolver.
These decreases were partially offset by a $102.3 million increase in the payment of dividends during 2022 as compared to 2021. ​ Credit Facilities ​ On August 3, 2021, we entered into the $450 Million Credit Facility, which we used to refinance the existing debt outstanding under the $495 Million Credit Facility and the $133 Million Credit Facility as of August 31, 2021.
These decreases were partially offset by a $5.5 million increase in deferred financing costs during 2023 as compared to 2022 related to the $500 Million Revolver that was entered into on November 29, 2023 to amend our $450 Million Credit Facility. ​ Credit Facilities ​ On August 3, 2021, we entered into the $450 Million Credit Facility.
Refer to Note 7 — Debt in our Consolidated Financial Statements for additional information. We obtained valuations for all of the vessels in our fleet pursuant to the terms of the $450 Million Credit Facility.
Refer to Note 7 — Debt in our Consolidated Financial Statements for additional information.
Dollars in thousands, at end of period) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash, including restricted cash ​ $ 64,100 ​ $ 120,531 ​ $ (56,431) (46.8) % Total assets ​ 1,173,866 ​ 1,203,002 ​ (29,136) (2.4) % Total debt (long-term, net of deferred financing fees) ​ 164,921 ​ 238,229 ​ (73,308) (30.8) % Total equity ​ 968,309 ​ 916,675 ​ 51,634 5.6 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Data: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (U.S.
Dollars in thousands, at end of period) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash, including restricted cash ​ $ 46,857 ​ $ 64,100 ​ $ (17,243) (26.9) % Total assets ​ 1,141,902 ​ 1,173,866 ​ (31,964) (2.7) % Total debt (long-term, net of deferred financing fees) ​ 190,169 ​ 164,921 ​ 25,248 15.3 % Total equity ​ 914,646 ​ 968,309 ​ (53,663) (5.5) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Data: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (U.S.
Dollars in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by operating activities ​ $ 189,323 ​ $ 231,119 ​ $ (41,796) (18.1) % Net cash used in investing activities ​ (55,015) ​ (67,573) ​ 12,558 (18.6) % Net cash used in financing activities ​ (190,739) ​ (222,694) ​ 31,955 (14.3) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ EBITDA (1) ​ $ 226,818 ​ $ 253,441 ​ $ (26,623) (10.5) % (1) EBITDA represents net income attributable to Genco Shipping & Trading Limited plus net interest expense, taxes and depreciation and amortization.
Dollars in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by operating activities ​ $ 91,784 ​ $ 189,323 ​ $ (97,539) (51.5) % Net cash used in investing activities ​ (91,624) ​ (55,015) ​ (36,609) 66.5 % Net cash used in financing activities ​ (17,403) ​ (190,739) ​ 173,336 (90.9) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ EBITDA (1) ​ $ 59,708 ​ $ 226,818 ​ $ (167,110) (73.7) % (1) EBITDA represents net (loss) income attributable to Genco Shipping & Trading Limited plus net interest expense, taxes and depreciation and amortization.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

9 edited+2 added−0 removed5 unchanged
Biggest changeDuring the years ended December 31, 2022 and 2021, we were subject to the following interest rates on the outstanding debt under our credit facilities (refer to Note 7 — Debt in our Consolidated Financial Statements for effective dates and termination dates for our credit facilities outlined below): ​ ● $450 Million Credit Facility ​ ● One-month or three-month LIBOR plus 2.45% beginning August 31, 2021, which was reduced to 2.15% effective November 4, 2021. ​ ● $133 Million Credit Facility ​ ● $108 Million Tranche — one-month LIBOR plus 2.50% until August 31, 2021, when this facility was refinanced with the $450 Million Credit Facility. ​ ● $25 Million Tranche — one-month LIBOR plus 3.0% effective June 15, 2020 when the initial draw down on this facility was made until March 31, 2021, when this tranche was paid down. ​ ● $495 Million Credit Facility ​ ● $460 Million Tranche – one-month or three-month LIBOR plus 3.25% effective until August 31, 2021, when this facility was refinanced with the $450 Million Credit Facility. ​ ● $35 Million Tranche – one-month LIBOR plus 2.50% effective August 28, 2019 when the initial draw down on this tranche of this facility was made until June 7, 2021, when this tranche was paid down. ​ A 1% increase in LIBOR would have resulted in an increase of $2.0 million in interest expense for the year ended December 31, 2022. ​ 64 ​ Table of Contents From time to time, the Company may consider derivative financial instruments such as swaps and caps or other means to protect itself against interest rate fluctuations. ​ Derivative financial instruments ​ As part of our business strategy, we may enter into interest rate swap agreements or interest rate cap agreements to manage interest costs and the risk associated with changing interest rates.
Biggest changeThese rates were applicable until November 29, 2023, when we entered into the $500 Million Revolver. ​ ● $500 Million Revolver ​ ● One-month SOFR plus 1.85% ​ A 1% increase in LIBOR and SOFR would have resulted in an increase of $1.6 million in interest expense for the year ended December 31, 2023. ​ From time to time, the Company may consider derivative financial instruments such as swaps and caps or other means to protect itself against interest rate fluctuations. ​ Derivative financial instruments ​ As part of our business strategy, we may enter into interest rate swap agreements or interest rate cap agreements to manage interest costs and the risk associated with changing interest rates.
Our bunker swap and forward fuel purchase agreements do not qualify for hedge accounting treatment; therefore, any unrealized or realized gains or losses are recognized as other income (expense).
Our bunker swap and forward fuel purchase agreements do not qualify for hedge accounting treatment; therefore, any unrealized or realized gains or losses are recognized as other (expense) income.
As the forecasted interest payments hedged are not remote of occurring, the amounts in AOCI as of the date of dedesignation will be released over the remaining original hedge period. ​ Refer to the “Interest rate risk” section above for further information regarding interest rate swap agreements. ​ We have entered into bunker swap and forward fuel purchase agreements with the objective of reducing the risk of the effect of changing fuel prices.
As the forecasted interest payments hedged are not remote of occurring, the amounts in AOCI as of the date of de-designation will be released over the remaining original hedge period. ​ Refer to the “Interest rate risk” section above for further information regarding interest rate swap agreements. ​ We have entered into bunker swap and forward fuel purchase agreements with the objective of reducing the risk of the effect of changing fuel prices.
At December 31, 2022, $6.1 million of AOCI is expected to be reclassified into income over the next 12 months associated with interest rate derivatives. ​ We are subject to market risks relating to changes in LIBOR rates because we have significant amounts of floating rate debt outstanding.
At December 31, 2023, $0.5 million of AOCI is expected to be reclassified into income over the next 12 months associated with interest rate derivatives. ​ We are subject to market risks relating to changes in SOFR rates because we have significant amounts of floating rate debt outstanding.
Refer to Note 8 — Derivative Instruments of our Consolidated Financial Statements, which summarizes the interest rate caps in place as of December 31, 2022. ​ The interest rate cap agreements cap the borrowing rate on our variable debt to provide a hedge against the risk of rising rates. ​ The total asset associated with the caps at December 31, 2022 is $6.7 million, of which $6.3 million has been classified as a current asset and $0.4 million has been classified as a noncurrent asset on the balance sheet.
Refer to Note 8 — Derivative Instruments of our Consolidated Financial Statements. ​ Interest rate cap agreements cap the borrowing rate on our variable debt to provide a hedge against the risk of rising rates. ​ The total asset associated with the cap at December 31, 2023 is $0.6 million which has been classified as a current asset on the consolidated balance sheet.
As of December 31, 2022, the Company has accumulated other comprehensive income (“AOCI”) of $6.5 million related to the interest rate cap agreements.
As of December 31, 2023, the Company has accumulated other comprehensive income (“AOCI”) of $0.5 million related to the interest rate cap agreement.
We held three interest rate cap agreements as of December 31, 2022 to manage future interest costs and the risk associated with changing interest rates. The total notional amount of the caps at December 31, 2022 is $200.0 million and the caps have specified rates and durations.
We held one interest rate cap agreement as of December 31, 2023 to manage future interest costs and the risk associated with changing interest rates. The total notional amount of the cap at December 31, 2023 is $50.0 million and the cap has a specified rate and duration and will expire during March 2024.
As of December 31, 2022, we held three interest rate cap agreements to manage interest costs and the risk associated with changing interest rates. The total notional amount of the caps at December 31, 2022 is $200.0 million and the caps have specified rates and durations.
As of December 31, 2023, we held one interest rate cap agreement to manage interest costs and the risk associated with changing interest rates. The total notional amount of the cap at December 31, 2023 is $50.0 million and the cap has a specified rate and duration and will expire during March 2024.
Refer to Note 8 — Derivative Instruments of our Consolidated Financial Statements which summarizes the interest rate caps in place as of December 31, 2022. The three interest rate cap agreements were initially designated and qualified as cash flow hedges.
Refer to Note 8 — Derivative Instruments of our Consolidated Financial Statements. 64 ​ Table of Contents The interest rate cap agreement was initially designated and qualified as a cash flow hedge.
Added
On May 30, 2023, we entered into an amendment to the $450 Million Credit Facility to transition from the use of LIBOR to calculate interest to SOFR effective June 30, 2023, During the years ended December 31, 2023 and 2022, we were subject to the following interest rates on the outstanding debt under our credit facilities (refer to Note 7 — Debt in our Consolidated Financial Statements for effective dates and termination dates for our credit facilities outlined below): ​ ● $450 Million Credit Facility ​ ● One-month or three-month LIBOR plus 2.15% until June 30, 2023.
Added
Effective June 30, 2023, we transitioned from the use of LIBOR to SOFR Rates. Additionally, on August 3, 2023, the applicable margin was reduced from 2.15% to 2.10% pursuant to the sustainability link term of the facility.

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