Tanker Security Fleet

Anyone have any information on what companies are in the running for these 10 new billets for the Tanker Security Fleet next year? Any predictions? I have listed a couple companies (in no particular order) that I think have a shot at getting at least one billet.

Seabulk Tankers
Crowley
US Shipping Corp.
Maersk
OSG
Keystone
Ocean Shipholdings Inc.
Schuyler Line

I’m not sure who is in the running but I’m curious what the outcome will be, alot of laid up tankers still looking for charters. The Overseas Santorini and Mykonos are 2 tankers currently in the Maritime Security Fleet, maybe they’ll be transferred to make up 2/10 of the tankers in the TSF. Anyone know if the tankers already chartered to MSC will fill out this fleet of ships?

From what I heard the two MSP OSG tankers will be transferred to the TSF. So that means there will be an opportunity for two more non-tankers to be flagged into the MSP Fleet.

However, adding many new US flagged ships to the US foreign going fleet my not be so. My prediction is that all the foreign trading non-jones tankers already flagged American will be transferred to the TSF.

1.) Overseas Santorini
2.) Overseas Mykonos
3.) Maersk Michigan
4.) Maersk Misaki
5.) Maersk Peary
6.) SLNC Pax (too small?)
7.) SLNC Goodwill

Therefore that leaves 2 MSP billets and 3 TSF billets. Only 5 new ships for the US flagged fleet.

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That gal at former OSG is always in the hunt for business. Smart to split the two fleets. She is not afraid to make tough choices. She knew the tug fleet she took over was old and non-hireable. Tough choices to scrap or sell to not many buyers. Beautiful rigs in their day, just got old… Steve Van Dyke laughing all the way to the bank when he and his cronies sold the awesome fleet.

That gal is not there. She has nothing to do with anything that is going on at OSG. I tried to tell you this before. She has literally no involvement. None.

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OSG built two ships for the replacement of the Santorini and Mykonos already. Rumor was they sold one but I don’t know the validity of that.

I was of the impression the government was going to try and add some US newbuilds as well. Maybe take in the 7 above and build 3 more? Time and money yes, but gets the votes from the Maritime unions, etc

Correct sir,she is CEO/president or whatever she puts on her mailbox of the non US flag fleet under a different name. Same lady that knew what a shit dump the acquisition was when she was in operations for OSG. You didn’t have to tell me anything, she wanted no parts of OSG. I don’t blame her for the demise of that fleet. She can count.

The Overseas Gulf Coast was sold according to OSG’s earrings report and it looks the like Overseas Sun Coast is sailing foreign flagged (not sure if it was also sold.)

It was my understanding that these would be foreign trading vessels / non-jones act that would be entered it to the fleet. Would be more expensive option to enter Jones Act vessels in the fleet to trade foreign.

They were both sailing foreign flagged. The plan was to sail them foreign until they could be reflagged and brought into the MSP when the other 2 aged out, which is coming up soon.

OSG with some tight financials right now with 6 laid-up MR tankers and 1 of their lightering ATBs (the other is pretty active up in Delaware Bay). OSG sold the Gulf Coast as part of negotiations with their debt-holders in order to maintain a certain level of free cash on the books. Gulf Coast had no associated debt, so they netted $32M on their books for her. OSG has about $12M in equity on the Sun Coast, so if they sell her too it’s a sign they need to raise a little more cash. Both these vessels were/are considered “non-core” to OSG, and there is a large, liquid market for MR vessels so not difficult to sell on international market if need be. The Mykonos and Santorini had their MSP contracts renewed through the end of 2022. Government of Israel is the main utilizer currently. Regarding all the laid up Jones Act tankers, lots of reasons for this mostly having to do with cheap European gas/diesel making its way to the US East Coast on foreign-flagged ships (the shipping rates for int’l-flagged product tankers are super low right now, which also encourages using them to transport cheap product to the US). These ships compete with transport of refined petroleum products from Gulf of Mexico refiners to Florida, which is far and away the largest utilizer of Jones Act ships to import gas and diesel and whatnot because Florida has no refineries of its own, and only a small part of North Florida has pipeline access off the Colonial Pipeline. The rest of Florida needs imports from ships. If not for the particular geography of Florida and lack of pipeline, the Jones Act product tanker fleet would be very much smaller. One potential growth area for Jones Act tankers is the growing renewable diesel interest from refineries in the Gulf Coast. Renewable diesel is mostly used on the West Coast. There is something like 5x expansion of renewable diesel production in Gulf Coast right now by year 2024 and it has to get to the West Coast somehow. Hopefully this will employ more Jones Act tankers. Rail transport is the competition and I honestly am not sure if rail can ramp up enough to provide this transport. OSG recently signed a 26 month charter contract with Valero to move renewable diesel from the Diamond Green/Valero refinery at Norco to the West Coast. This is a nice long trip through Panama, so good employment. I am hoping to see more deals like this come about over the next 2-3 years. Rail versus Jones Act ship decision will come down capacity and cost. There are no US shipyards slots to even start building a new Jones Act tanker until at least 2024, so the current fleet will remain the current fleet. I am not a mariner, but do have a good understanding of the Jones Act petroleum markets, and also of OSG as a company since I am heavily invested in them.

I hope you didn’t buy into OSG at $60 a share!

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lol, no

Thanks for the info. So it looks like the Overseas Sun Coast would be flagged in to the TSF.

1.) Overseas Santorini
2.) Overseas Mykonos
3.) Overseas Sun Coast
4.) Maersk Michigan
5.) Maersk Misaki
6.) Maersk Peary
7.) SLNC Pax (too small?)
8.) SLNC Goodwill

So looks like there will possibly only be 2 TSF billets up for grabs.

Also another development is Seacor / Seabulk Tankers just acquired US Shipping corporation. So even less competition in the tanker market now.

The Sun Coast was built to replace one of the other two in the MSP fleet. I don’t know if they can be MSP and TSF at the same time?

A friend and former shipmate is captain on the one ATB still running in Delaware Bay. Boat is in good hands. Dude drew monster miles in pilotage. His father was an AB with me, he was an OS . Hawsepiper that did great work.

That’s a busy boat (I track all of OSG’s fleet on Marinetraffic.com) doing good work for OSG and their two refinery clients. Big :+1: to him and the crew.

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He likes Popeyes chicken. LOL I remember his dad talking about him as a pitcher in youth baseball when he overheard a fan say “That boy throws more junk than a junkyard dog”. We go way back and a good mariner.

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