Overseas Shipholding Group has inked a decade-long bareboat charter for a handymax tanker that includes a new name for the vessel.
The 45,700-dwt Oregon Voyager (built 1999) will be in the Tampa-based Jones Act player's employ until 2029 under the name Overseas Key West. The charter begins in the second quarter.
"Following closely on our decision to extend all of the leases for our [American Shipping Company]-owned tankers, the addition of the Overseas Key West to our fleet of Jones Act tank vessels is an important and visible signal of OSG’s continuing commitment to sustaining our leading position in the markets which we serve," said chief executive Sam Norton.
He added that the new ship would add more than $18m per year in charter revenue.
Analysts at Arctic Securities say the deal signals OSG’s positive market outlook, and follows the December decision to extend leases on the American Shipping fleet.
"The Jones Act tanker market continues to recover gradually on the back of increased shipments of crude oil from the Gulf to the US Northeast," said Lars Bastian Ostereng
"OSG and counterpart American Shipping are both experiencing increased demand for long-term charters with rates for period fixtures in the $50,000 to $55k per day range, which in our view points to healthy fundamentals."
The former Oregon Voyager is worth $17.84m according to Vessels Value.
It is owned by Banc of America Leasing and had been chartered to Seabulk Tankers, where it previously worked for Chevron.
The ship will be the 11th US-flagged ship OSG has chartered in. All are tankers. The company owns 14 vessels on its own, four of them tankers.
