Jones Act Investments Strong as JP Morgan Group is Latest in the Sector
Investor interest in the protected U.S. Jones Act shipping market is growing as demonstrated by the news that a group advised by J.P Morgan Global Alternatives’ Global Transportation Group has taken control of Bold Ocean. The announcement of the transaction comes on the same day as Crowley and SEACOR launched their new joint venture Fairwater and just weeks after Saltchuk Resources finally completed its long-sought acquisition of Overseas Shipholding Group.
Demand continues to grow in the protected market both for commercial Jones Act-compliant shipping as well as contracts to support the U.S. government. Fairwater cited the evolving needs of the market with the increasing demands on sustainability. The energy segment is strong as well as new entrants linked to the emerging opportunities to support offshore wind energy.
J.P. Morgan continues to also show strong interest in the opportunities in the shipping sector. The investment company has interests ranging from tankers and gas carriers to the bulk sector with reports its interest include a fleet of approximately 150 ships.
Terms of the acquisition of Bold Ocean, which was purchased from private equity firm NOVA Infrastructure, were not disclosed. NOVA partnered with the founders and management team of Bold Ocean in 2020 with the goal of building the leading maritime transportation and logistics platform in the U.S. Flag. During NOVA’s partnership with Bold Ocean, the company significantly expanded its operating footprint and market scope and high-graded its leading fleet of vessels.
Headquartered in Annapolis, Maryland, Bold Ocean was launched in 2018 as a parent company for a range of holdings in the maritime sector and related businesses. Its focus is on Jones Act tonnage, the U.S. Cargo Preference market, and the Maritime Security Program. The group includes Schuyler Line Navigation Company as well as stevedoring, technical management, and crew operations.
Bold Ocean highlights that the group operates a total of nine vessels that transport essential government supplies, fuel, humanitarian food aid, and other goods under long-term time charter with the U.S. government as well as parcel contracts with highly rated counterparties, providing significant revenue stability and downside protection for the business.
Schuyler Line Navigation Company was founded in 1998 by three graduates of SUNY Maritime and today operates five ocean-going vessels including two tankers, two heavy lift vessels, and a general cargo ship as well as cargo barges. Services include various U.S. government-approved bulk/break bulk cargoes from the U.S. to Guantanamo Bay, Cuba. The line also has Pacific services, including to the Far East, as well as services to West Africa and a charter business.
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