The engine department doesn’t own all of that stuff, the company does. And unless Keystone is agreeable to pay for it, I can promise you that it is finding its way to the “company man” ashore.
Bareboat charters typically stipulate that the vessel will be given back to the owner in as near to exact same condition as when it was originally chartered. There are very detailed surveys at the start of the charter and at the end as well. This doesn’t sound too far off the mark.
Or buy second hand on the world market:
Source: https://www.offshore-energy.biz/second-hand-tanker-market-recorded-four-sales-last-week/
25 mil a piece? What a deal!
True and @DamnYankee true. I would be pissed if I had to take everything out just to have the new company buy the same stuff to put everything back in. It would be better to just sell the equipment to keystone but on the other hand it wouldn’t be bad move for OSG to not either.
Are the bids public knowledge? Like who bids on the program but not the specifics?
That was from an old article (2012)
The second hand prices obtained for 5 year old MR tankers has risen since then.
Here is the price in Aug. 2022:
[quote]
Also looking at rising asset prices has been London-based brokers Gibson who pointed out that five-year-old MR tankers have appreciated in value in 2022 from $29m to $34m, a price that exceeds the price of a newbuild MR back in January 2021.
Source: Tanker asset prices ‘on a tear’ - Splash247
Last I heard the funding was tied up because Congress wanted Final proposals, not interim proposals. I think MARAD was shooting for final proposals here in December/January. From the timeline I last heard the plan was to reflag 1 ship a month starting around April '23.
The law says no long term government contract, so Redhill will have to be different tankers. and I think the plan for redhill is spreading the cargo all around the pacific, and since its long term they want all the MSC bullshit (Unrep gear, coms, decon, guns, ect).
There are already players like Maersk, SLNC, and patriot running ships on short term government contract, and if I were a betting man, I’d wager they’d shift their already existing fleet into this new redhill jobs, and bring in new TSP tonnage to replace what they already have on short term charter. but I’ve heard about reflagging for redhill tankers as well.
All that is fine and dandy, but I’m not sure where the crew is going to come from, when a whopping 2 3rd mates with PICs graduated from KP this year, and I’ve seen tanker jobs at all levels sit on the board. Let alone finding officers top to bottom with all the MSC stuff AND tanker experience and papers. Or just a 3rd engineer in general.
Do you know what players are interested ? I was curious if some US companies that do not currently operate tankers might try to get a billet or two.
What? How is this possible?
2 or 3 times in the last 20 years they had the chance and voted no. Fuck 'em. The is only one reason mates pay is as high as it is…because OSG basically mirrors MEBA compensation. A young mate would be a fool to not join keystone.
Last year OSG was hiring new 3rd mates without PIC and I think making chief mate stand a cargo watch. Used to be tanker companies wouldn’t even interview without PIC. Amusing times.
It’s plausible. Placement on tankers was limited, at the time last year’s class got their sea time, not many companied had adopted the “EMBARC” protocols required to place USMMA midshipmen as cadets.
Not even MSC?
Placement on tankers to get PIC endorsement is always usually pretty limited.
Scuttlebutt i heard said everyone who operates a tanker was bidding.
Combination of SASH stand down round 2, residual, Covid snafus EMBARC, its been rough. And then the kids with PICs seem to be going to the highest bidder, even the almighty crowley has 3rd mate jobs sitting on the board. Wild times for sure.
@New3M with the rule for info- pacific mentioned by @FloridaMan1, then can OSG take their MSP tankers to the TSP or are they stuck? Because don’t those tankers operate on Israeli Government charters and in the Mediterranean???
Their plan was to replace the MSP tankers with the 2 new builds. There’s an age requirement for MSP (15 years) and they are rapidly approaching that. They were then hoping to use the former MSP ships for the TSP.
Of course that’s all over with now so who knows what their next plan is. Probably to let the competition have some more tonnage.
I was under the impression that OSG was going to be able to transfer their MSP billets into TSP billets. But I guess not. And I heard rumors that MARAD wanted more MSP roro tonnage to distract from or help with the lack of RRF roro tonnage shortfall that is happening. I guess we will see how it all sorts out
OSG does like 80-90% of things right. It’s a shame they always fuck up the last little bit. The best equipped ship with tools, spares, and organization I’ve ever been on has been an OSG ship. Too bad the shitty hours/pay means top performers go elsewhere.
The MSP tankers are known as a revolving door for engineers because rumors have it the leadership sucks.
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