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 March 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 1934.

                                    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")  on March  28,  2006,
announcing  the Company's  intent to acquire its fleet  commercial and technical
manager, Diana Shipping Services S.A., on or about April 1, 2006.

                                                                     Exhibit I

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

         Diana Shipping Inc. Announces Acquisition of its Fleet Manager

ATHENS, GREECE, March 28, 2006 - Diana Shipping Inc. (NYSE: DSX) today announced
that it has agreed to acquire its fleet commercial and technical manager,  Diana
Shipping  Services  S.A.,  or DSS, for a purchase  price of $20.0  million.  The
acquisition  is  expected to close on or about  April 1, 2006.  The  acquisition
follows the exercise of an option granted to DSS's  shareholders  at the time of
Diana's initial public offering.

Diana Shipping's  Chairman and Chief Executive Officer,  Simeon Palios,  stated:
"We are  happy  that  with the  acquisition  of DSS,  we are  bringing  the full
commercial  and  technical  management  of our fleet  in-house.  We believe that
having DSS's  professional  and experienced  staff join us will only enhance our

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.  Acquisitions  may also be subject to
closing  conditions.  Please see our filings  with the  Securities  and Exchange
Commission  for a  more  complete  discussion  of  these  and  other  risks  and


         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:  March 28, 2006                       By:  /s/ Anastassis Margaronis
                                                  Anastassis Margaronis