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 February 2007

                        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. on February 16, 2007 announcing the sale of one of
its Capesize dry bulk carriers and that it has entered into a time charter
contract with Cargill International S.A. for one of its Panamax vessels.

                                                                       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,  February 16, 2007 - Diana Shipping Inc.  (NYSE:DSX),  a global
shipping   transportation  company  specializing  in  dry  bulk  cargoes,  today
announced  that it has signed a  Memorandum  of Agreement  with an  unaffiliated
third party for the sale of one of its Capesize dry bulk carriers,  the Pantelis
SP, for the price before commissions of $81 million.  The vessel, is expected to
be delivered to its new owners in early July 2007.  The Pantelis SP is a 169,883
dwt Capesize bulk carrier  built in 1999 that the Company  purchased in February
2005 for a contract price of $63.5 million.

The Company also announced that it has entered into a time charter contract with
Cargill  International  S.A.  for one of its Panamax  vessels,  the Clio,  for a
period of minimum 23 to maximum 25 months at a gross  daily  charter of $27,000.
The time charter contract is expected to commence on or about February 25, 2007.
The Clio is a 73,691 dwt Panamax dry bulk carrier built in 2005.

Diana Shipping Chairman and Chief Executive Officer,  Simeon Palios,  commented:
"It is the  intention of the Company to apply the proceeds  from the sale of its
oldest  vessel  towards the  purchase of the new Capesize  vessel,  the Semirio,
whose  purchase  price is only $17 million  more than the sale price of Pantelis
SP. Our  shareholders  should also note that the  delivery of Pantelis SP to its
new owners is expected  to occur in early July,  and until that time the Company
will continue to receive revenues from the vessel.  As far as the new charter of
Clio is concerned, this indicates once again that we are committed to increasing
the  visibility  of  our  earnings  by  taking  advantage  of  favorable  market
conditions and locking in healthy rates."

Upon  completion  of sale of  Pantelis  SP and  including  other  vessels  under
construction,  the  Company's  fleet will  consist of thirteen  Panamax and four
Capesize dry bulk carriers. The weighted average age without taking into account
the vessels under construction will be 3.2 years.

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.

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,"  "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:  February 21, 2007                        By: /s/ Anastassis Margaronis
                                                         Anastassis Margaronis

SK 23159 0002 749522