EDISON, N.J., Oct. 17 /PRNewswire-FirstCall/ -- U.S. Shipping Partners L.P. ("U.S. Shipping") today announced that it has completed a long-term time charter for employment of the second of its series of articulated tug barges ("ATBs") scheduled to be delivered in mid-2008. The charterer, an investment grade company, will utilize this vessel in its domestic coastwise trade in refined petroleum products and chemicals. The first ATB in the series, scheduled for completion in April 2007, is covered by contracts of affreightment in U.S. Shipping's U.S. flag chemical transportation business. U.S. Shipping expects that these contracts of affreightment will utilize substantially all of the first ATB's capacity through June 2010. Upon delivery, U.S. Shipping expects both of these ATBs to be financially accretive.
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The ATB which is the subject of this charter is the first of a series to be constructed by Manitowoc Marine Group (barge component) of Marinette, Wisconsin and Eastern Shipbuilding Group Inc. (tug component) of Panama City, Florida. These ATBs feature a flexible cargo system capable of carrying a broad spectrum of refined petroleum products and chemicals, a fuel efficient main engine and a hull design which will allow service speeds generally in excess of standard ATB designs.
Paul Gridley, Chairman and CEO, said: "This charter further reinforces the value of our new ATB series to our customer base. We are pleased to announce the completion of this charter fixture and continue to engage in discussions with other customers concerning charters on the successor ATB units we have under contract."
About U.S. Shipping Partners L.P.
U.S. Shipping Partners L.P. is a leading provider of long-haul marine transportation services, principally for refined petroleum products, in the U.S. domestic "coastwise" trade. U.S. Shipping Partners L.P. is also involved in the coastwise transportation of petrochemical and commodity chemical products. For additional information about U.S. Shipping Partners L.P., please visit http://www.usslp.com/ .
This press release may include "forward-looking statements" as defined by the Securities and Exchange Commission. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by the company based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company, which may cause our actual results to differ materially from those implied or expressed by the forward-looking statements. Such assumptions, risks and uncertainties are discussed in detail in the Partnership's filings with the SEC.
