International Fleet Operations
OSG’s crude oil fleet includes all major crude oil vessel classes, including a fleet of six International Flag lightering vessels that trade primarily in the United States, Gulf of Mexico. In order to enhance vessel utilization and TCE revenues, the Company has placed its ULCC, VLCC, Suexmax, Aframax tankers as well as a number of Panamax tankers into Commercial Pools that are responsible for the Commercial Management of these vessels. The pools collect revenue from customers, pay voyage-related expenses, and distribute TCE revenues to the participants, after deducting administrative fees, according to formulas based upon the relative carrying capacity, speed, and fuel consumption of each vessel. As of December 31, 2010, Tankers International had seven participants and managed a fleet of 45 modern VLCCs and ULCCs that trade throughout the world, including all 15 of the Company’s ULCC and VLCC owned and chartered-in vessels. Suezmax International is managed by the Company. As of December 31, 2010, the pool had two participants and provides the Commercial Management for a fleet of four vessels, including the Company’s two chartered-in vessels, which primarily trade in the Atlantic Basin. As of December 31, 2010, there were 13 participants in Aframax International and the pool Commercially Managed 46 vessels, including 11 (10.5 weighted by ownership) of the Company’s owned and chartered-in vessels. Aframax International’s vessels generally trade in the Atlantic Basin, North Sea and the Mediterranean. As of December 31, 2010, Panamax International managed a fleet of 24 modern Panamaxes, which includes five of the Company’s owned crude Panamaxes and three of its owned Panamax Product Carriers (LR1s), as well as three crude Panamaxes that are time chartered to one of the pool partners.
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Famous quotes containing the words fleet and/or operations:
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—Henry David Thoreau (1817–1862)