Several noteworthy stories emerged last month from union-contracted Aker Philadelphia Shipyard, but for Seafarers, the biggest report undoubtedly was the joint announcement by the yard and SIU-contracted Overseas Shipholding Group (OSG) concerning additional new builds for the Jones Act trade.The company and the shipyard on Feb. 7 announced they had signed an agreement in principle through which Aker Philadelphia will construct up to six additional Veteran-Class product tankers. The agreement calls for three ships and includes options for three more vessels.
“Both OSG and Aker Philadelphia are demonstrating their commitment to the U.S.-flag fleet,” said SIU Executive Vice President Augie Tellez. “The SIU in turn will proudly continue living up to our commitment to provide well-trained, reliable, safe and productive unlicensed crews for these new vessels.”
That announcement wasn’t the only good news. Two days later, the SIU-crewed Overseas Houston—the first in the Veteran-Class series—was delivered.
Additionally, in early February the shipyard and the Philadelphia Metal Trades Council announced that a new collective bargaining agreement between the union and the shipyard had been ratified by the Philadelphia Metal Trades membership. The new agreement followed months of determined negotiations between the yard and union leadership and will be effective through Jan. 31, 2011.
Gary Gaydosh, president of the Philadelphia Metal Trades Council, stated, “Having this new agreement in place helps the shipyard and union work together to ensure a bright future for shipbuilding in Philadelphia. I believe it is a good agreement for both parties.”
Dave Meehan, Aker Philadelphia Shipyard president and CEO, said, “Our union employees are the backbone of our shipyard, and their hard work and dedication to their crafts are evidenced in the ships we build. This agreement speaks to the commitment of both parties to work together building on our accomplishments to date and looking to the future. It provides a foundation for continuing our solid relationship through the entire ten tanker build program.”
The tanker program first was announced in April 2005 as a series of 10 ships scheduled for completion in 2010. OSG subsequently indicated a desire to expand the program.
When the first tanker was delivered last month, Eric Smith, chief commercial officer and head of government affairs for OSG America, commented, “OSG America is very excited to have taken delivery of the Overseas Houston today. Our relationship with Aker American Shipping is excellent. We use our combined resolve to deliver new Jones Act tonnage to our customers like Shell who will employ this vessel for many years to come.”
The Overseas Houston was slated to sail from the yard to the Gulf of Mexico where it will soon begin service transporting refined petroleum products for Shell Oil Company under that company’s time charter agreement with OSG.
There are three other product tankers in the series currently under production at the yard. Each of the new tankers will be 600 feet long and capable of transporting 330,000 barrels of petroleum products. Each vessel will weigh 46,000 deadweight tons (dwt).
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