Arlington Tankers Limited is a leading international seaborne transporter of crude oil and petroleum products.

 

Our fleet consists of eight double-hulled vessels and is one of the youngest tanker fleets in the world, with an average vessel age of approximately 2.0 years. All of our vessels are employed on time charter contracts which provide investors with a secure minimum level of earnings over a fixed period of time.

 

Our fleet consists of two V-MAX tankers, which are specially designed VLCCs (Very Large Crude Carriers), two Panamax tankers and four Product tankers.

 

We acquired our original six ships concurrently with our Initial Public Offering on the New York Stock Exchange in November, 2004 and our two additional product tankers in January 2006. Arlington Tankers Ltd. is incorporated under the laws of Bermuda. In each of our vessel size categories, we have identical sister-vessels. There are two V-MAX tankers, which are specially designed VLCCs, ranging in size from 200,000 to 320,000 dwt. There are two Panamax tankers, which are tankers ranging in size from 50,000 to 80,000 dwt. And there are four Product tankers, which are vessels of 40,000 to 50,000 dwt designed to carry a wide range of products including crude oil and clean and dirty products. We refer to these eight tankers collectively as our Fleet.

 

Our V-MAX tankers were specifically designed and built to provide more efficient transportation and increased safety over standard VLCCs. The hull body of the V-MAX tanker is wider than a conventional VLCC which enables the vessel to carry more cargo at a shallower draft which lowers transportation costs per barrel unit of cargo. Our V-MAX tankers also have two independent propulsion systems, two rudders and propellers which improve vessel maneuverability and port access, as well as providing a maximum speed capability greater than standard designs.

 

Our Panamax tankers have fully epoxy coated tanks and a tank design that permit the vessels to change from transporting dirty products to clean petroleum products faster than a standard vessel of this class.

 

Our Product tankers have one of the most efficient designs for vessels in this class with 10 completely independent multiple-grade cargo segregations providing increased flexibility over standard Product tankers.

 

We entered into time charter contracts for our tankers with subsidiaries of Stena AB and Concordia Maritime, both of Sweden. The remaining charter periods range from 3 to 5 years followed by optional periods.

 

A time charter is a contractual arrangement under which we are paid charter hire by the charterer on a daily basis for the use of our vessels for a fixed period of time. The Charterer is responsible for paying all of the voyage expenses. The shipowner is responsible for providing the crew and paying vessel operating expenses. We have entered into ship management contracts with Northern Maritime Management, of Scotland and USA, to provide the operating services required of the shipowner.

 

Our V-MAX tankers currently trade from West Africa to North America and carry crude oil. Our Panamax tankers currently trade in the North, South and Central Americas and primarily carry crude oil, but occasionally carry dirty products, such as fuel oil. Our Product tankers currently trade in the Caribbean and the Transatlantic and primarily carry clean products such as gasoline, diesel and jet fuel.