Folly or Foresight? Prospects for the Jones Act Tanker Trade and Title XI Guarantees

When the number of newbuildings proposed in a recent Title XI application for product tankers, aimed mostly at the Jones Act tanker trade, exceeded the number of vessels of the market’s largest player, red flags were bound to go up.

Van Ommeren Tankers filed for a US government guarantee to cover the construction of five with an option for five more tankers – sending shivers down the spines of those operating in this fragile market where even one ship long or short seems to make a difference.

Seventy-five product tankers and 85 barges, totaling approximately 4 million dwt, were eligible for the trade as of April, according to one source. The US Maritime Administration (Marad) puts the number at 79 including integrated tug barges; while industry players put the number at 39 or 40 for product tankers up to 50,000 dwt.

This is only an excerpt of Folly or Foresight? Prospects for the Jones Act Tanker Trade and Title XI Guarantees

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