OSG Strikes MSC Governmental Deal to Support US Defence

Florida-based Overseas Shipholding Group (OSG), a major operator of tankers and ATBs in the Jones Act industry, has sealed a deal with the Military Sealift Command for the time charter of OSG´s vessel Overseas Mykonos.

The company said that the Military Sealift Command (MSC) has awarded the Overseas Mykonos, a vessel in OSG’s fleet, a time charter contract to provide ongoing fuel transportation services to MSC in support of its nation’s defense. The contract was awarded in a competitive bidding process.

The specific ship has been chosen as it has the ability, in accordance with OSG, to perform consolidated cargo replenishment at sea operations, providing flexibility and options for refuelling the U.S. military fleet while underway. The Overseas Mykonos has also made other militarily useful modifications, including those to meet Transcom requirements.

The time charter deal is for a 1-year base period with the MSC holding additional option periods to extend the contract out to a maximum period of five and one half years.

The 2010-built vessel Overseas Mykonos, a medium range product tanker with 12 cargo tanks and a cargo capacity of 333,000 barrels, will be delivered to MSC at Pearl Harbor in August.

OSG’s CEO and President, Sam Norton said “this ship and its crew have the capability to provide maritime transportation services using equipment and communication technologies that are in sync with the needs of the Department of Defense and Navy.”

“This award highlights the benefits of cooperation between the merchant marine industry and the military. By working together, we are providing loyal and experienced U.S. citizen mariners, reliable vessels, and advanced equipment for our nation’s benefit. The Overseas Mykonos’ support to MSC will bolster our involvement in deepening and broadening the pool of domestic merchant mariners supporting a U.S.- flagged tanker presence in international waters,” added Mr. Norton.