Keystone charters third AMSC Jones Act tanker

Written by Nick Blenkey
Keystone Shipping has chartered in a third AMSC Jones Act tankers

AMSC ASA reports that it has entered into a bareboat charter for one of its Jones Act tankers with Philadelphia-headquartered Keystone Shipping Company.

The contract commences in December 2022 and has a duration of three years with no extension options. The bareboat charter is supported by a back-to-back time charter of the same duration between Keystone and a leading U.S. fuel distributor. The new bareboat charter adds approximately $31.3 million to AMSC’s existing charter backlog, excluding any proceeds from a profit share component of the charter.

The news follows the June announcement that AMSC had entered into bareboat charter agreements with Keystone Shipping for two of its Jones Act tankers, with those charters commencing in December 2022.

AMSC, which up until a name change earlier this month was called 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 were on bareboat charter to Overseas Shipholding Group Inc. (NYSE: OSG). However, back in December 2021, OSG announced that it had exercised options to extend its bareboat charter agreements for two vessels, but would not be exercising extension options for three other vessels. The two bareboat charter extensions provided for additional one-year terms, 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,” said 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.”

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