Washington, D. C. 20549

                        Report of Foreign Private Issuer
                      Pursuant to Rule 13a-16 or 15d-16 of
                       the Securities Exchange Act of 1934

                          For the month of January 2006

                               DIANA SHIPPING INC.
                 (Translation of registrant's name into English)

                               Diana Shipping Inc.
                                   Pendelis 16
                              175 64 Palaio Faliro
                                 Athens, Greece

                    (Address of principal executive offices)

         Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.

                  Form 20-F [X]                Form 40-F [_]

         Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of

                          Yes [_]               No [X]


     Attached to this Report on Form 6-K as Exhibit 1 is a copy of the press
release issued by Diana Shipping Inc. (the "Company") today, January 20, 2006,
announcing two new time charter contracts with Cargill International S.A.

Exhibit I

                                               Corporate Contact:
                                               Ioannis Zafirakis
                                               Director and Vice-President
                                               Telephone: + 30-210-9470100
For Immediate Release
                                               Investor and Media Relations:
                                               Edward Nebb
                                               Euro RSCG Magnet
                                               Telephone: + 1-212-367-6848


ATHENS,  GREECE,  January 20, 2006 - Diana Shipping Inc.  (NYSE:  DSX), a global
shipping company  specializing in the transportation of dry bulk cargoes,  today
announced that it has entered into time charters with Cargill International S.A.
for two of its Panamax dry bulk  carriers,  the Protefs and the  Calipso,  for a
period  of 11-13  months  and  23-25  months,  respectively.

The charters are scheduled to commence on February 2, 2006 and January 21, 2006,
respectively.  The time charter rate will be payable 15 days in advance and will
be adjusted every 15 days based on the average rate of four  pre-determined time
charter routes as published by the Baltic Exchange.  The initial charter payment
will be made on  delivery  of each  vessel  to  Cargill  at a rate  based on the
average of four time  charter  routes for the 15 days  preceding  each  vessel's
delivery date. At the end of the time charter period for each vessel, there will
be a final settlement to reflect the average daily rate of the four time charter
routes for the actual duration of the charter.

Diana  Shipping has the right to convert the floating rate into a fixed rate for
the remaining term of each charter, up to a maximum of twelve (12) months at the
prevailing market rate, subject to agreement by Cargill.

The Chairman  and Chief  Executive  Officer of Diana  Shipping,  Simeon  Palios,
commented:  "We are pleased to have  established  with Cargill a structure  that
combines long term time charter  employment,  the ability to accurately  reflect
the spot market, and the elimination of repositioning risks. At the same time we
maintain  the  opportunity  to  convert  from  floating  to fixed  time  charter
employment under certain parameters.  We are confident that these contracts will
help  strengthen  even further our Company's ties with Cargill,  one of the most
reputable operators in the bulk carrier business."

The  Protefs  is a 73,630 dwt  Panamax  dry bulk  carrier  built in 2004 and the
Calipso is a 73,691 dwt Panamax dry bulk carrier built in 2005.

About the Company 

Diana Shipping Inc. is a global  provider of shipping  transportation  services.
The  Company  specializes  in  transporting  dry bulk  cargoes,  including  such
commodities  as iron  ore,  coal,  grain  and other  materials  along  worldwide
shipping  routes.  Diana  Shipping Inc.  priced its initial  public  offering of
common stock on March 17, 2005.

Cautionary Statement Regarding  Forward-Looking  Statements 

Matters   discussed  in  this  press  release  may  constitute   forward-looking
statements.  The Private Securities  Litigation Reform Act of 1995 provides safe
harbor  protections  for  forward-looking   statements  in  order  to  encourage
companies   to   provide   prospective   information   about   their   business.
Forward-looking  statements  include  statements  concerning plans,  objectives,
goals, strategies,  future events or performance, and underlying assumptions and
other statements, which are other than statements of historical facts.

The  Company  desires to take  advantage  of the safe harbor  provisions  of the
Private  Securities  Litigation  Reform  Act  of  1995  and  is  including  this
cautionary statement in connection with this safe harbor legislation.  The words
"believe," "except," "anticipate," "intends," "estimate," "forecast," "project,"
"plan,"  "potential,"  "will," "may,"  "should,"  "expect"  "pending and similar
expressions identify forward-looking statements.

The  forward-looking  statements  in this press  release are based upon  various
assumptions,  many of which  are  based,  in  turn,  upon  further  assumptions,
including  without  limitation,   our  management's  examination  of  historical
operating  trends,  data  contained in our records and other data available from
third parties.  Although we believe that these  assumptions were reasonable when
made,   because  these   assumptions  are  inherently   subject  to  significant
uncertainties and contingencies which are difficult or impossible to predict and
are beyond our control,  we cannot assure you that we will achieve or accomplish
these expectations, beliefs or projections.

In addition to these  important  factors  other  important  factors that, in our
view,  could cause actual results to differ  materially  from those discussed in
the  forward-looking  statements  include the  strength of world  economies  and
currencies,  general market conditions,  including fluctuations in charter rates
and vessel values, changes in demand for dry bulk shipping capacity,  changes in
our operating expenses, including bunker prices, drydocking and insurance costs,
the market for our vessels,  availability of financing and refinancing,  changes
in   governmental   rules  and   regulations  or  actions  taken  by  regulatory
authorities,  potential  liability  from pending or future  litigation,  general
domestic  and  international  political  conditions,   potential  disruption  of
shipping  routes due to accidents or political  events,  vessels  breakdowns and
instances  of  off-hires  and other  factors.  Please see our  filings  with the
Securities and Exchange  Commission for a more complete  discussion of these and
other risks and uncertainties.

                                      # # #


         Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                               DIANA SHIPPING INC.

Dated:  January 20, 2006                       By:  /s/ Anastassis Margaronis
                                                    Anastassis Margaronis

23159.0002 #635870