The combination of refining capacity limitations in Western nations due to cost and environmental considerations, a rising demand for refined products and the greater distance products must travel from refineries to reach end users, has resulted in an increased demand for product carriers worldwide. OSG believes these factors are likely to continue and in response, significantly expanded its presence in the product sector with the acquisition of Stelmar Shipping Ltd. The acquisition increased OSG’s product carrier fleet eight-fold and augmented the Company’s world class technical operations team with a technical management center based in Athens, Greece.
OSG has developed long-term relationships with governmental organizations, major oil companies and large private oil traders. These long-term customers are attracted by OSG’s ability to provide quality tonnage and to operate efficiently, safely and to a charterer’s exact specifications. OSG’s product carriers are capable of carrying multiple grades of refined products, always maintaining complete integrity between these products. Many of OSG’s product tankers have IMO III classification, which affords these vessels the ability to carry cargoes such as easy chemicals and vegetable oils. This increased flexibility and utilization can result in higher returns.
Facts and Figures
Number of International Flag Product Carriers in OSG Fleet: 37 vessels
Handysize Vessel Capacity: 35,000 to 50,000 dwt
Charter Profile: Spot market and time charter, the mix of each is dependent on market conditions and customer requirements
