Overseas Shipholding Group - U.S. Flag Fleet Operations

U.S. Flag Fleet Operations

OSG is a commercial owners and operators of Jones Act vessels. The Company’s U.S. Flag Fleet consists of 25 owned, operated and newbuild Handysize Product Carriers and ATBs. The acquisition of Maritrans Inc., gave OSG a presence in all United States trading routes, such as intra United States Gulf, United States Gulf to the East Coast, United States Gulf to the West Coast, the Alaskan North Slope trades and the Delaware Bay. The Company has extension options for the lives of the chartered-in vessels. As of December 31, 2010, OSG has time charters-out for 11 of these 12 vessels. OSG has a presence in the Alaskan North Slope trade through its 37.5% equity interest in Alaska Tanker Company, LLC (ATC), a joint venture that was formed among OSG, BP plc. (BP) and Keystone Shipping Company (Keystone) to support BP’s Alaskan crude oil transportation requirements. Certain of the Company’s vessels participate in the U.S. Maritime Security Program (the Program), which ensures that militarily useful U.S. Flag vessels are available to the United States Department of Defense in the event of war or national emergency. The Company competes with Frontline Ltd., BW Shipping Managers, Mitsui OSK Lines, Ltd., Nippon Yusen Kabushiki Kaisha, Malaysian International Shipping Corporation Berhad, Maran Tankers Management, Gemini Tankers, Stena Sonagol, Blue Fin Tankers pools, Dynacom Tankers Management, Ltd., Thenamaris Ships Management, Inc., OAO Sovcomflot, Teekay Corporation, General Maritime Corporation, Sigma Tankers Inc., Star Tankers Heidmar Inc., A/S Dampskibsselskabet Torm, Jacob-Scorpio Pool Management S.A.M., Glencore International AG, Handytankers K/S, Vitol Group, Trafigura, Navig8, Dorado Tankers Pool Inc., Seacor Holdings Inc., Crowley Maritime Corporation and U.S. Shipping Corp.