The Jones Act market

In addition to building merchant vessels for the Jones Act market, to which it has supplied over 50% of all large, ocean-going ships since 2000, Aker Philadelphia’s business strategy is to opportunistically participate in the economics of vessels in operation. The shipbuilder has profit-sharing agreements in place for two 50,000dwt product tankers delivered to Crowley in 2012 and 2013, and its joint venture with Crowley covering the operation and chartering of four additional tanker newbuilds will create a further platform for long-term earnings, as will the Philly Tankers initiative. The increasing production of US shale oil is a game-changer, and is expected to continue to foster high demand for Jones Act tonnage.