JP Morgan Asset Management has added some context to its prioritisation of the US-flagged market as a new area for its far-flung investment portfolio.
Managing director Andrian “Andy” Dacy said expected growth in the market and technological changes are factors in its acquisition of the company behind US-flagged operator Schuyler Line Navigation of Maryland.
“Given ongoing developments globally, it is likely that the US-flag market will continue to grow in size and diversity in the years to come,” Dacy said on Friday in a message to TradeWinds.
JP Morgan announced on Thursday that it had taken control of Bold Ocean — the holding company behind Schuyler Line and four other companies — from NOVA Infrastructure Management.
Financial details were not disclosed.
Schuyler Line controls seven ships, a mix of tankers and bulkers, primarily carrying cargoes under contract with the US government.
JP Morgan Asset Management controls 140 vessels across every major shipping sector under the direction of Dacy, who has described his approach to the job as that of a shipowner more than a banker.
“We expect the US to increasingly focus on ensuring that it has robust access to shipping and logistics assets,” Dacy said.
“Changes in shipping technology are having commensurate impacts on the existing US-flag market and are expected to lead to fleet renewal requirements in this segment.”
While Dacy did not get into precisely what opportunities JP Morgan has in mind, there has in general been increasing consciousness of the US government’s need for more access to dedicated tonnage and seafarers at a time of prospective war or other national emergencies.
This has only increased with rising geopolitical instability in hotspots like the Middle East, the Russia-Ukraine theatre and China.
The Maritime Administration of the US Department of Transportation has addressed such needs through the 60-ship Maritime Security Program and more recently the Tanker Security Program, which focuses on providing a core fleet of US-based product tankers currently set at 10.
Schuyler Navigation has participated in other US government programmes, including work from the US Navy. In July 2023, it secured a one-year, $19.3m “firm, fixed-price contract with reimbursable elements” for its 50,300-dwt MSLC Goodwill (built 2009).
The contract featured potential extensions into August 2028 that could be worth a total of $93.3m.
Schuyler Line was founded in 1998 by three graduates of the State University of New York Maritime College, which is located at an old military fortification known as Fort Schuyler and has more than 30 shoreside employees at its headquarters in Annapolis, Maryland.
Bold Ocean chief executive Dion Nicely, who will stay on to lead the company, said: “We are thrilled to have JP Morgan’s deep maritime industry experience and transportation-asset focus enhancing the Bold Ocean team.
“Bold Ocean has a great foundation for the future and, with JP Morgan’s support, we will continue to meet the needs of the US government with the highest service levels.”
