International Seaways, Inc. (INSW) and its wholly owned subsidiaries own and operate a fleet of oceangoing vessels engaged primarily in the transportation of crude oil and petroleum products in the International Flag trade.
The company's vessel operations are organized into two segments: Crude Tankers and Product Carriers. As of December 31, 2024, the company owned or operated an International Flag fleet of 78 vessels (totaling an aggregate of 9.1 million dwt), consisting of VLCC, Suezmax, and...
International Seaways, Inc. (INSW) and its wholly owned subsidiaries own and operate a fleet of oceangoing vessels engaged primarily in the transportation of crude oil and petroleum products in the International Flag trade.
The company's vessel operations are organized into two segments: Crude Tankers and Product Carriers. As of December 31, 2024, the company owned or operated an International Flag fleet of 78 vessels (totaling an aggregate of 9.1 million dwt), consisting of VLCC, Suezmax, and Aframax crude tankers, as well as LR2, LR1, and MR product carriers. In addition to its operating fleet of 78 vessels, six dual-fuel ready LR1 newbuilds are contracted for delivery to the company between the second half of 2025 and the third quarter of 2026, bringing the total operating and newbuild fleet to 84 vessels. The Marshall Islands is the principal flag of registry of the company's vessels.
The company's ultimate customers, including those of the commercial pools in which it participates, include major independent and state-owned oil companies, oil traders, refinery operators, and international government entities. It generally charters its vessels to customers either for specific voyages at spot rates through the services of pools in which the company participates, or for specific periods of time at fixed daily rates through time charters or bareboat charters.
Strategy
The company will continue to actively manage the size and composition of its fleet through opportunistic accretive acquisitions and dispositions.
Fleet Operations
As of December 31, 2024, the company’s operating fleet consisted of 78 vessels, 63 of which were owned and 15 of which were chartered in (including 13 vessels under bareboat charters pursuant to sale and leaseback arrangements which are deemed to be financing arrangements). Vessels chartered-in include two time charters. The company is subject to purchase obligations for 10 of the vessels under sale and leaseback financing arrangements at the end of each bareboat charter.
The company's fleet list excludes vessels chartered-in where the duration of the charter was one year or less at inception, as well as any workboats chartered-in by the company's Crude Tankers Lightering business.
Business Segments
The company has established two business segments: Crude Tankers and Product Carriers.
Crude Tankers (including Crude Tankers Lightering)
Crude Tankers reportable business segment is made up of a fleet of VLCCs, Suezmaxes, and Aframaxes engaged in the worldwide transportation of crude oil.
This segment also includes the company's Crude Tankers Lightering business through which the company provides ship-to-ship (or 'STS') lightering support services and full-service STS lightering to customers in the U.S. Gulf ('USG'), U.S. Pacific, Grand Bahama and Panama regions. In STS lightering support service, the company provides the personnel and equipment (hoses and fenders) to facilitate the transferring of cargo between seagoing ships positioned alongside each other, either stationary or underway. In full-service STS lightering, the company provides the lightering vessel, usually an Aframax tanker, in addition to the personnel and equipment to facilitate the transferring of cargo. The company's customers include oil companies and trading companies that are importing or exporting crude oil in the USG to or from larger Suezmax and VLCC vessels, which are prevented from using certain ports due to their size and draft.
Product Carriers
Product Carriers reportable business segment consists of a fleet of MRs, LR1 product carriers, and an LR2 product carrier engaged in the worldwide transportation of refined petroleum products. Refined petroleum product cargoes are transported from refineries to consuming markets characterized by both long and short-haul routes. The market for these product cargoes is driven by global refinery capacity, changes in consumer demand and product specifications and cargo arbitrage opportunities. In contrast to the crude oil tanker market, the refined petroleum trades are more complex due to the diverse nature of product cargoes, which include gasoline, diesel and jet fuel, home heating oil, vegetable oils and organic chemicals (e.g., methanol and ethylene glycols). The trades require crew to have specialized certifications. Customer vetting requirements can be more rigorous and, in general, vessel operations are more complex due to the fact that refineries can be in closer proximity to importing nations, resulting in more frequent port calls and more discharging, cleaning and loading operations than crude oil tankers. The company's MR product carriers are IMO III compliant, allowing those vessels to carry edible oils, such as palm and vegetable oil, increasing flexibility when switching between cargo grades.
The company employs its LR1 Product Carriers, which participate in the PI pool, in the transportation of crude oil cargoes.
Commercial and Technical Management of Fleet – Hybrid Operating Model
The company employs a hybrid operating model in the commercial and technical management of the company's fleet. The company's in-house commercial and technical management experts utilize third-party service providers to execute the company's commercial and technical operations, while providing the company with the flexibility to scale operations up or down with the company's fleet across various shipping cycles.
Commercial Pools and other Commercial Management Arrangements
The company utilizes third-party managed pools as the principal commercial strategy for its vessels participating in the spot voyage charter markets.
The company also employs third-party commercial managers on a limited basis for some of its vessels from time to time in the spot market through Commercial Management Agreements (CMAs).
Environmental and Security Matters Relating to Bulk Shipping
The company's vessels undergo regular and rigorous safety inspections and audits which are conducted by the ships' third-party managers. In addition, a variety of governmental and private entities subject the company's vessels to both scheduled and unscheduled inspections. These entities include the United States Coast Guard, local port state control authorities (harbor master or equivalent), coastal states, Classification Societies, flag state administration (country of registry) and customers, particularly major oil companies and petroleum terminal operators. Certain of these entities require INSW to obtain permits, licenses and certificates for the operation of the company's vessels.
The ISM Code requires a Document of Compliance (DoC) to be obtained for the company responsible for operating the vessel and a Safety Management Certificate (SMC) to be obtained for each vessel that such company operates.
History
The company was incorporated in 1999. The company was formerly known as OSG International, Inc. and changed its name to International Seaways, Inc. in 2016.