Jones Act – Still the king of rates in 2016?

In today’s market Jones Act tankers command a significant premium as few ships are available in the face of overwhelming demand and tight supply. 34 MR’s and 42 coastal barges of 130,000bbls or larger represent the current US Jones Act Fleet. However, future supply may not be as tight as many orders have been hitting US shipyards. There are at least 10 medium range tankers on order, two large ATBs, and the possibility of an additional five to eight tankers to be built at Avondale. These orders will represent a sizable addition to the US flag tanker fleet over the next three to four years, which will help increase the liquidity in both the spot and relet markets. Download here