“Our Commitment to America” feature video tells the story of OSG’s investment and support to strengthen the U.S. Flag Fleet, the Jones Act and the American shipbuilding industry

OSG America went public on November 9, 2007. Click on the logo below to link to osgamerica.com

OSG is one of the largest commercial owners and operators of Jones Act vessels in the United States and has a trade presence in all four U.S. coastwise markets: intra-U.S. Gulf, U.S. Gulf to the West Coast, U.S. Gulf to the East Coast and the Alaska North Slope. The Company's owned, operated and newbuild U.S. Flag fleet of more than 35 vessels is predominantly made up of Handysize Product Carriers and Articulated Tug Barges.

As a U.S.-based company, OSG is uniquely positioned to capitalize on a cabotage market that requires vessels engaging in trade between contiguous U.S. ports to be built in the U.S., operate under the U.S. flag, be at least 75% owned and operated by U.S. citizens and be manned by U.S. crews.

The Oil Pollution Act of 1990 (OPA 90) mandates the phase-out of non double hull tankers by 2015. The replacement requirements for the shrinking fleet, coupled with a market growing one to three percent annually, present a unique growth opportunity. The U.S. Flag market segment is a critical element of OSG’s balanced growth strategy and since 2004, the Company has made a number of important steps toward expanding and diversifying its U.S. Flag fleet.

Fleet Expansion and Diversification
OSG significantly expanded and diversified its U.S. Flag presence through the acquisition of Maritrans Inc. in 2006. The addition of 21 Articulated Tug Barges and Handysize Product Carriers complements the Company’s U.S. Flag Handysize tanker fleet. The combined fleet provides lightering operations as well as serves long-haul and short-haul U.S. coast routes throughout the United States .

­OSG has bareboat chartered-in 12 Veteran Class MT-46 Jones Act product tankers currently under construction at the Aker Philadelphia Shipyard in Philadelphia, Pennsylvania. OSG will control the tankers for initial terms of five to seven years and has extension options for the commercial life of the vessels.

OSG’s U.S. Flag tanker and articulated tug barge newbuild and rebuild program of 14 vessels are under construction in Philadelphia, Pennsylvania, Mobile, Alabama and Tampa, Florida and are scheduled for delivery through 2010. The program represents a significant step in replacing the nation’s aging product tanker fleet with state-of-the-art double hull tonnage. The program is also an important boost to the U.S. shipbuilding industry and to the preservation of jobs in the Philadelphia, Mobile and Tampa regions as well as for U.S. seafarers.

OSG purchased two Jones Act product carriers, the Puget Sound and the Galena Bay.

Government Business Expansion
OSG has been awarded four U.S. Maritime Security Program slots each for a 10-year term. The program ensures that militarily-useful U.S. Flag vessels are available to the U.S. Department of Defense in the event of war or a national emergency. In return, OSG receives $2.6 million to $3.1 million per year for each vessel over the terms of the agreement.

Commercial Relationships
OSG holds a 37.5% stake in Alaska Tanker Company, a joint operating company formed with BP p.l.c. and Keystone Shipping Co. to manage the fleet of ships that transport BP’s Alaskan North Slope crude oil from Valdez, Alaska to market destinations.

Facts and Figures

• Number of vessels in U.S. Flag Fleet: 21
• Shipyard building 12 Jones Act Product Carriers: Aker Philadelphia Shipyard, Inc.
• Shipyard building/rebuilding seven Jones Act Articulated Tug Barges: Bender Shipbuilding and Repair in Mobile, Alabama and Tampa Bay Shipbuilding in Tampa, Florida
• Charter Profile: A majority of the fleet trades on long-term charters
• OSG’s Industry Viewpoint
• Fleet List
  
• Trading Routes Map