OSG to outsource technical management of its International Flag shipping business to V.Ships
Overseas Shipholding Group, Inc. (OTC:OSGIQ) (the “Company,” or “OSG”) today announced that it intends to outsource the technical management of its International Flag shipping business to V.Ships, a leading third-party ship manager. The outsourcing contract with V.Ships is subject to the approval of the Bankruptcy Court, which will be sought today and will be heard on February 3, 2014. The Company’s U.S. Flag business will continue with its current strategy and will continue to be headquartered in Tampa, FL. Customers, employees, vendors and others involved with OSG’s U.S. Flag business will see few, if any, changes, OSG said Monday in a news release.
Pursuant to a newly focused strategy, the outsourcing of technical management will provide the Company’s International Flag business with a competitive cost structure, consistent with industry best practice, that will enable it to take advantage of future market opportunities. This new strategy will include the use of a world-class third-party ship management company, V.Ships, to provide technical management services to OSG’s International Flag conventional tanker fleet. The International Flag business, which has a strong history of pool participation, will now utilize pools as the principal commercial strategy for all of its vessels, and OSG intends to participate in independently managed tanker pools.
Overseas Shipholding Group, Inc. is a publicly traded tanker company providing energy transportation services for crude oil and petroleum products in the U.S. and International Flag markets. OSG is committed to setting high standards of excellence for its quality, safety and environmental programs. OSG is recognized as one of the world’s most customer-focused marine transportation companies and is headquartered in New York.