“We are encouraged to see significant chartering activity in the Jones Act tanker market during the last few months leaving very limited shipping capacity available until the end of 2020,” stated Pål Lothe Magnussen, CHIEF EXECUTIVE OFFICER of Oslo- provided American Shipping Company (AMSC) as the business reported 3rd quarter results that consisted of an BITDA of $22.4 million and also changed internet earnings of $3.0 million.
Magnussen included that brand-new time charter agreements are being finished at “higher levels than last year and for longer durations, signaling a continued strengthening in the market. Current market rates in the high fifties are profitable for both owners and operators, and we believe we are in a multi-year period of stable and improving market conditions.”
AMSC, in which Aker ASA is the biggest investor with a 19% risk was established in 2005 in parallel with what was after that Aker Philadelphia Shipyard (currently Philly Shipyard). It has a fleet of 9 modern-day MR item vessels and also one modern-day shuttle bus vessel, constructed at the Philadelphia shipyard and also all running in the united state Jones Act market and also on long-term bareboat charters with evergreen expansion choices with Overseas Shipholding Group,Inc (OSG).
In its quarterly record the business states that it believes that “we remain in a multi-year duration with a secure Jones Act vessel market which is showing enhancing market problems, causing slowly greater time charter prices for longer periods. Recent components are greater than in 2015 and also for longer durations.
“The existing problems in the Jones Act vessel market are an outcome of adverse fleet development over the previous 2 years, in mix with slowly raising need for delivering tidy items along with a rebirth of unrefined delivery transport.
“The order publication for brand-new vessels is almost vacant and also older vessels are remaining to be eliminated from the fleet. This pattern is anticipated to proceed for the coming years with minimal backyard capability properly raising newbuild expense and also postponing possible shipment times. Expensive upkeep capex makes it unpleasant to maintain buying older vessels, and also we anticipate the staying 10 vessels older than 35 years to leave the fleet over the following a number of years.
“The market fundamentals driving demand for shipping clean products as well as crude remain stable and are expected to remain that way for the foreseeable future. The crude spread between WTI priced in Houston and Bonny Light remained open during Q3 and the monthly cargoes being shipped to the U.S. Northeast remained stable at similar levels as seen over the last two years. Clean cargo volumes, mainly from the U.S. Gulf into Florida, remained stable with the majority of the Jones Act fleet being deployed on this trade.”