The two sides will form a joint venture on a 50/50 basis called Diana Wilhelmsen Management (DWM).
The new company will manage a number of Diana's own bulkers at first, with operations starting in the second quarter.
Looking ahead, it said it may later provide management services to other shipowners.
DWM will be based in Limassol, Cyprus. Diana has 40 ships currently.
Its chairman and CEO Simeon Palios said: “Diana Shipping is excited to partner with WSM in creating a world class ship management company.
"This
