The US government unveiled some lucrative business for local shipowners, most of it as part of a new national security scheme to ensure military fuel supplies in times of international crisis.
The US Department of Transportation’s Maritime Administration (MARAD) formally announced that it has enrolled nine ships under its Tanker Security Program (TSP).
Set up under the 2021 National Defense Authorization Act, the TSP was modelled after the Maritime Security Program, which gives the US military access to 60 merchant ships in case of foreign conflict or national emergencies.
The market already knew about Overseas Shipholding Group (OSG) and a joint venture of Crowley and Stena Bulk each providing three tankers to the scheme.
However, what the MARAD announcement revealed late on Tuesday is that Seabulk Tankers is part of the programme as well, contributing a further three tankers.
A unit of Seacore Holdings, Seabulk owns 10 US-flagged product carriers and chemical tankers with a capacity of between 20,000 dwt and 48,400 dwt.
The MARAD statement did not specify which of these it will take into the TSP.
To judge from the ships it is known to have hired from Crowley and OSG — all relatively young MRs — it seems plausible that one of the three Seabulk tankers is the 48,400-dwt Independence (built 2016).
The three companies enrolled will receive a maximum of $6m per year for each of the ships they have put under the scheme.
“The vessels will operate in US foreign commerce and be available for use by the US during times of war or national emergency,” MARAD said.
A much more lucrative tanker contract was awarded separately by the US Navy to Schuyler Line Navigation.
According to an official government filing, the Maryland-based company obtained a one-year, $19.3m “firm-fixed-price contract with reimbursable elements” for its 50,300-dwt MSLC Goodwill (built 2009).
However, the charter may last far longer than that.
It includes three extension options of 12 months each, plus a fourth possible one over 11 months.
If all these options are exercised, Schuyler will have fixed employment for the MSLC Goodwill until August 2028, worth a total of $93.3m.
“Work will be performed in the Far East and worldwide,” said the Navy, which operates in dozens of US bases stationed around the world to project US military power.
Schuyler has won US Navy business before, alongside other tanker companies such as AP Moller-Maersk and American Petroleum Tankers.
