Marine Log

December 12, 2006

BP charters first U.S. Shipping NASSCO newbuild

U.S. Shipping Partners L.P. (NYSE: USS) today announced that it has entered into a long-term charter agreement with BP for a new double-hulled product tanker being built for U.S. Shipping Partners' tanker joint venture by General Dynamics NASSCO in San Diego.

This vessel is due for delivery in early 2009 and will be employed by BP in the U.S. domestic coastwise trade.

The ship is the first in U.S. Shipping's new series of nine vessels.

The 49,000 dwt product carriers will be 183 meters (600.4 feet) in length and 32.2 meters (105.6 feet) in beam, with a design draft of 11.8 meters (38.7 feet). Eachd will have a cargo capacity of 331,000 barrels.

The tankers are based on an existing design from DSEC, a wholly owned subsidiary of Daewoo Shipbuilding and Marine Engineering of Seoul, Korea. NASSCO entered into an agreement with DSEC last March to produce ships for the U.S. market under the Jones Act, in which DSEC will provide detail designs and services related to construction of the ships. All of the ships will be constructed at the NASSCO shipyard in San Diego.

Paul Gridley, Chairman and CEO, said: "We are very pleased to continue our long standing association with BP with the charter of this new tanker."