AMSC ASA experiences that it has entered right into a bareboat constitution for considered one of its Jones Act tankers with Philadelphia-headquartered Keystone Shipping Company.
The contract commences in December 2022 and has a length of three years with no extension choices. The bareboat constitution is supported by a back-to-back time constitution of the identical length between Keystone and a number one U.S. gasoline distributor. The new bareboat constitution provides roughly $31.3 million to AMSC’s present constitution backlog, excluding any proceeds from a revenue share part of the constitution.
The information follows the June announcement that AMSC had entered into bareboat constitution agreements with Keystone Shipping for 2 of its Jones Act tankers, with these charters commencing in December 2022.
AMSC, which up till a name change earlier this month was referred to as American Shipping Company, owns 10 Jones Act tankers delivered between 2007 and 2011 by the then Aker Philadelphia Shipyard (now Philly Shipyard).
Originally, all 10 had been on bareboat constitution to Overseas Shipholding Group Inc. (NYSE: OSG). However, again in December 2021, OSG introduced that it had exercised choices to increase its bareboat constitution agreements for 2 vessels, however wouldn’t be exercising extension choices for 3 different vessels. The two bareboat constitution extensions supplied for extra one-year phrases, commencing in December 2022 and ending in December 2023.
“We are pleased to have secured employment for the final vessel well ahead of the expiration of its current charter,” stated AMSC CEO Pål Lothe Magnussen. “By successfully bareboat chartering the three ships, we have increased our charter backlog by over $91 million. Jones Act tanker capacity is likely to remain constrained for the foreseeable future, and these charters are indicative of strong demand for our vessels. Chartering these ships to a premium U.S. tanker operator like Keystone gives us a great deal of confidence that our vessels will be operated and maintained to the highest standards.”
Keystone President Donald Kurz commented, “We are pleased to add the final AMSC vessel to our fleet on a back-to-back charter with a leading U.S. fuels distributor. We are very happy to have concluded this bareboat transaction which allows us to continue to service customers in the U.S. Gulf petroleum trade.”
