OSG To Build Four Tankers

Wednesday, March 29, 2006
Overseas Shipholding Group, Inc. will build four, 114,000 dwt 44-meterbeam Aframax tankers at the New Times Shipbuilding Co., Ltd. shipyard based in Jinjiang, China. The vessels, scheduled for delivery in 2008 and 2009, will increase OSG's Aframax fleet to 21 tankers serving customers in the Atlantic basin, and will operate in the Aframax International (AI) pool. The tankers will be built using the new Common Structural Rules (CSR) recently established by IACS for all tankers and bulk carriers ordered after April 1, 2006. Among other design upgrades, the new rules set forth stricter hull strength requirements and technical criteria of double hull tankers that had previously differed by each classification society. OSG has agreed to pay approximately $58 million for each of the high specification tankers.

The new tankers will add 456,000 deadweight tons to the Company's fleet, bringing its total owned, operated and newbuild fleet to 113 vessels, aggregating 12,652,837 dwt and 864,800 cbm. OSG co-founded and co-manages the AI pool which holds the number-two market position worldwide with a combined fleet of 42 Aframax tankers.

Additionally, the Company announced its intention to sell two of its older Aframax tankers. By replacing the older tonnage with newer, more efficient vessels, OSG will benefit from increased revenue and lower vessel operating expenses.

Mats Berglund, head of OSG's Crude Transportation Strategic Business unit stated, "The newbuild price we were able to negotiate was significantly less than the $75 million rates being quoted in the market today for less efficient vessels that are not CSR-compliant. After the sale of the older tankers, our marginal investment will more than double the commercial life of the vessels. Furthermore, the new ships are faster, have a larger carrying capacity and shallower draft than the vessels we intend to sell."

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter April 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Great Lakes Inks M.E., N.C. Coastal Protection Project Deals

Great Lakes Announces $55 Million in Subcontract Work in the Middle East and Award of $38 Million for a Domestic Coastal Protection Project Great Lakes Dredge

Olympic Subsea Vessel Bags Contract

Olympic Shipping has secured a contract for Olympic Delta, an inspection, maintenance and repair (IMR) vessel, with an international client  to work on a renewable energy project.

Asia Tankers-VLCCs Rates Ease as Tanker Jams Fade

Port congestion eases at Basra and Chinese ports; tanker demand set to expand on lower oil prices. Freight rates for very large crude carriers (VLCCs), hurt by slower-than-usual release of cargo,

Coast Guard

Disabled Fishing Vessel Towed to Maine

The 60-foot fishing boat Paulo Marc was towed by the crew of U.S. Coast Guard Cutter Moray after the fishing vessel became disabled Wednesday about 90 miles east of Portland, Maine.

Fishing Crew Missing off Wales

The U.K. Coastguard is searching for the crew of a sunken fishing vessel near St David’s Head, Pembrokeshire.   The Coastguard said it received a 999 call from

USCG Uses Skiff Ice Boat to Rescue Injured Man

The U.S. Coast Guard medically evacuated a man off of a dredging barge in Lake Erie near Sandusky, Ohio, Wednesday evening. At approximately 5:45 p.m., a good

 
 
Maritime Contracts Maritime Security Maritime Standards Navigation Pod Propulsion Port Authority Salvage Ship Electronics Ship Simulators Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0769 sec (13 req/sec)