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

                         For the month of December 2006

                        Commission File Number: 001-32458

                               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 of Form 20-F or Form 40-F.

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

Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): ___

Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)7: ___

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 ]

If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): ________.


       Attached to this Report on Form 6-K as Exhibit 1 is a press release
issued by Diana Shipping Inc. (the "Company") on December 7, 2006 announcing
that the Company has entered into a time charter contract for the Erato, one of
its Panamax dry bulk carriers.

                                                                    Exhibit 1

                                         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  December 7, 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 a time charter contract with  Perseveranza Di
Navigazione SpA for one of its Panamax dry bulk carriers,  the Erato, at a gross
rate of US$30,500  per day for a minimum  eleven (11) to maximum  thirteen  (13)
month  period.  This  employment is expected to generate  approximately  US$10.2
million of gross revenues for the minimum  scheduled period of the charter.  The
charter is expected to commence on or about December 9, 2006.

The Chairman  and Chief  Executive  Officer of Diana  Shipping,  Simeon  Palios,
commented:  "We are very  pleased  to have  arranged  this time  charter  with a
respected  European  company  which  owns dry  bulk  vessels  and also  actively
operates in the  chartering  of bulk  carriers  and  tankers.  This fixture also
represents the fundamental nature of our current chartering  strategy which aims
at  positioning  our vessels in such a manner  that we are able to exploit  good
market  conditions as they arise.  Our Company should benefit from the fact that
four to five  vessels in our fleet will come open for  charter  from now through
the end of the first quarter of 2007."

About the Company

Diana Shipping Inc. (NYSE: DSX) 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:  December 7, 2006                        By:  /s/ Anastassis Margaronis
                                                     Anastassis Margaronis

SK 23159 0002 728786