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."