Now that spot rates have risen, Overseas Shipholding Group (OSG) has shifted toward fixing its ships on time charters.

The Florida-based, New York-listed Jones Act tanker player spent the last three months adding 12 years’ worth of period coverage, with 92% of available days fixed for the rest of the year and nearly 80% for 2023.

Chief executive Sam Norton said OSG had extended contracts for its lightering customers and the Israeli government along with eight time charters across its tankers and ATBs

“With conventional tankers fixing in the mid-60s and our ATB fixtures concluded in the mid-40s, this book of new business should generate nearly $275m of time charter equivalent revenues to be realised over the next 3.5 years,” Norton said on a second-quarter earnings call.

Norton also noted the company could fix two more of its tankers into renewable diesel trades.

The company already has two in the trade, carrying renewable diesel from the US Gulf coast to California.

Norton said those voyages are 35 to 40 days long, three to five times as long as OSG’s usual Texas to Florida trading routes.

Renewable diesel was one of the trades Norton discussed in January as an emerging opportunity for the company as it looks to evaluate its future.

For the second quarter of 2022, OSG reported a $3.7m profit, up from a $10.7m loss for the same period last year with time charter equivalent revenue rising to $103m.

The company said the “long shadow” of Covid-19-related demand destruction was finally behind them.

In late trading on Monday, OSG shares dropped $0.10 to $2.49.