Page 31: of Marine News Magazine (June 2016)

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SHORTSEA SHIPPING

Crowley Maritime Corp. recently took delivery of Louisiana, the third of four new, Jones Act product tankers being built for the company by Philly Shipyard, Inc. (PSI). These tankers are at the forefront of the industry for their potential future conversion to LNG propulsion.

Credit: Crowley Maritime $65,000 per day for a long term, ma- jor oil backed charter. This is a signi? - cant drop from the market peak we saw not more than eighteen months ago at $75,000 to $80,000 per day.

Though many want to speak to the domestic trades being ‘protected,’ the fact is that nothing protects the owner or the operator from the cyclical na- ture of shipping.

The Offshore market is no differ- ent. Many historical owners and oper- ators contracted for OSVs, PSVs and

Offshore construction vessels to sup- port deep offshore drilling in the U.S

Gulf. Most, if not all have stopped construction and placed new tonnage into layup. The down cycle of this market is a sad story today as many have lost jobs in the shipyards and in 31

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MN June16 Layout 18-31.indd 31 5/17/2016 11:04:12 AM