75208--3/2/2009--OVERSEAS_SHIPHOLDING_GROUP

related topics

{condition, economic, financial}

{cost, contract, operation}

{capital, credit, financial}

{investment, property, distribution}

{operation, international, foreign}

{personnel, key, retain}

{operation, natural, condition}

{tax, income, asset}

{competitive, industry, competition}

{acquisition, growth, future}

{loss, insurance, financial}

{regulation, change, law}

{cost, regulation, environmental}

{product, liability, claim}

{debt, indebtedness, cash}

The highly cyclical nature of the industry may lead to volatile changes in charter rates and vessel values, which may adversely affect the Company's earnings An increase in the supply of vessels without an increase in demand for such vessels could cause charter rates to decline, which could have a material adverse effect on OSG's revenues and profitability Charter rates may decline from their current level, which could have a material adverse effect on OSG's revenues and profitability OSG's revenues are subject to seasonal variations The global economic recession and constraints on capital availability that commenced in 2008 adversely affects the tanker industry and OSG's business Terrorist attacks, piracy and international hostilities can affect the tanker industry, which could adversely affect OSG's business The market value of vessels fluctuates significantly, which could adversely affect OSG's liquidity, result in breaches of its financing agreements or otherwise adversely affect its financial condition Shipping is a business with inherent risks, and OSG's insurance may not be adequate to cover its losses Because OSG conducts its business on a worldwide basis, OSG faces a number of significant risks that could result in losses or higher costs Compliance with environmental laws or regulations may adversely affect OSG's business The market value of OSG's vessels, which have recently been at or near historically high levels, may be depressed at a time and in the event that it sells a vessel The Company's business would be adversely affected if it failed to comply with the Jones Act provisions on coastwise trade, or if these provisions were repealed and if changes in international trade agreements were to occur. OSG's financial condition would be materially adversely affected if the shipping income of OSG's foreign subsidiaries becomes subject to current taxation in the U.S. The Company's substantial debt could adversely affect its financial condition When OSG's credit facilities mature, it may not be able to refinance or replace them The Company is highly dependent upon volatile spot market charter rates OSG may not be able to renew time charters when they expire or enter into new time charters for newbuilds Delays or cost overruns in building new vessels (including the failure to deliver new vessels) or in the scheduled shipyard maintenance of the Company's vessels could adversely affect OSG's results of operations Bender Shipbuilding Repair Co., Inc.'s ("Bender") inability to deliver and incurrence of cost overruns in constructing new vessels has adversely affected OSG Termination or change in the nature of OSG's relationship with any of the pools in which it participates could adversely affect its business OSG may not be able to grow its fleet OSG's strategy of growing its business in part through acquisitions is capital intensive, time consuming and subject to a number of inherent risks Operating costs and capital expenses will increase as the Company's vessels age OSG's purchase of second hand vessels carries risks associated with the quality of those vessels Certain potential customers will not use vessels older than a specified age, even if they have been recently rebuilt In the highly competitive international market, OSG may not be able to effectively compete for charters with companies with greater resources Trading and complementary hedging activities in Forward Freight Agreements ("FFAs") and related FFA options subject the Company to trading risks and the Company may suffer trading losses that reduce earnings The Company is subject to certain credit risks with respect to its counterparties on contracts and failure of such counterparties to meet their obligations could cause the Company to suffer losses on such contracts, decreasing revenues and earnings As the Company expands its business, it will need to improve its operations and financial systems, and recruit additional staff and crew; if it cannot improve these systems or recruit suitable employees, it may not effectively control its operations OSG's ability to obtain business from U.S. government agencies may be adversely affected by a determination by the Military Sealift Command (MSC) that OSG is not presently responsible for a single contract. Compliance with the environmental compliance plan agreed to with the U.S. Department of Justice imposes a more rigorous standard on OSG's technical management of its vessels, which may adversely affect its business OSG's vessels call on ports located in countries that are subject to restrictions imposed by the U.S. government, which could negatively affect the trading price of the Company's common stock OSG depends on its key personnel and may have difficulty attracting and retaining skilled employees The Company may face unexpected drydock costs for its vessels Maritime claimants could arrest OSG's vessels, which could interrupt its cash flow Governments could requisition OSG's vessels during a period of war or emergency without adequate compensation

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75208--3/2/2009--OVERSEAS_SHIPHOLDING_GROUP_INC