International Seaways, Inc. (INSW): Business Model Canvas [11-2024 Updated]

In the dynamic world of maritime shipping, International Seaways, Inc. (INSW) stands out with a robust business model that effectively navigates the complexities of the crude oil and product transportation markets. By leveraging key partnerships, a modern fleet, and strategic customer relationships, INSW delivers reliable services while maintaining a strong financial position. Dive deeper into the components of INSW's Business Model Canvas to understand how they create value and sustain competitive advantage in the industry.

International Seaways, Inc. (INSW) - Business Model: Key Partnerships

Collaborations with commercial pools for vessel operations

International Seaways, Inc. operates primarily in the spot market, with approximately 84% of total TCE (Time Charter Equivalent) revenues derived from this segment for the three months ended September 30, 2024. The company collaborates with leading commercial pools, which enhances operational efficiency and market reach. In the nine months ended September 30, 2024, pool revenues accounted for approximately $603.97 million, compared to $701.63 million for the same period in 2023, reflecting a decrease of 14% year-over-year.

Period	Pool Revenues ($ millions)	Total TCE Revenues ($ millions)	Percentage of TCE from Pools
Q3 2024	170.01	225.19	75.5%
Q3 2023	194.47	241.71	80.6%
9M 2024	603.97	757.00	79.7%
9M 2023	701.63	821.04	85.5%

Relationships with shipyards for new vessel construction

International Seaways maintains strategic relationships with shipyards for the construction of new vessels. As of September 30, 2024, the company has contracted to build six dual-fuel ready LNG LR1 Product Carriers at a total cost of approximately $359 million. These vessels are expected to be delivered between the second half of 2025 and the third quarter of 2026. The financing for these newbuilds will be through a combination of long-term financing and available liquidity, which underscores the company's commitment to fleet modernization and sustainability.

New Vessels	Type	Cost ($ million)	Delivery Period
6	Dual-fuel LNG LR1 Product Carriers	359	H2 2025 - Q3 2026

Partnerships with financial institutions for funding and leasing

Financial partnerships play a critical role in International Seaways' operations. As of September 30, 2024, the company reported total liquidity of $693.8 million, which includes $153.3 million in cash and $540.5 million of undrawn revolver capacity. The company’s total debt outstanding was $650.5 million, with a net debt to capital ratio of 21%, indicating a stable financial position to support its expansion and operational needs.

Financial Metrics	Amount ($ million)
Total Liquidity	693.8
Cash	153.3
Undrawn Revolver Capacity	540.5
Total Debt Outstanding	650.5
Net Debt to Capital Ratio	21%

International Seaways, Inc. (INSW) - Business Model: Key Activities

Operating a fleet of crude and product tankers

As of September 30, 2024, International Seaways, Inc. operates a diverse fleet that includes 21 owned vessels and 9 chartered-in vessels. The average daily Time Charter Equivalent (TCE) rate for crude tankers was $36,587 for the third quarter of 2024, a decrease from $41,470 in the same period of 2023.

The company reported TCE revenues of $98.8 million for crude tankers during the third quarter of 2024, compared to $110.8 million in the previous year. The average number of owned vessels remained stable at 21.0, while the number of revenue days for these vessels was 2,701 in the third quarter of 2024.

Managing charter contracts and voyage logistics

International Seaways primarily derives its revenues from the spot market, with approximately 84% of TCE revenues from spot market voyages in the third quarter of 2024. The company has future minimum contracted revenues of $344.8 million from non-cancelable time charters, with $36.5 million expected in 2024.

The company reported total shipping revenues of $757 million for the nine months ended September 30, 2024, with voyage charter revenues from lightering services contributing $44.6 million. In addition, the average charter hire expenses were reported at $4.4 million for the third quarter of 2024.

Conducting maintenance and regulatory compliance for vessels

Maintenance and regulatory compliance are critical for the operational integrity of the fleet. For the first nine months of 2024, total vessel expenses increased to $107.9 million from $105.4 million in 2023, reflecting higher drydock costs. The depreciation and amortization expenses also rose to $109.9 million for the same period.

As of September 30, 2024, International Seaways had a total liquidity of $693.8 million, which included $153.3 million in cash and $540.5 million in undrawn revolver capacity, enabling the company to fund maintenance and compliance activities.

Metric	Q3 2024	Q3 2023
Average Daily TCE Rate (Crude Tankers)	$36,587	$41,470
TCE Revenues (Crude Tankers)	$98.8 million	$110.8 million
Total Shipping Revenues (9M 2024)	$757 million	$821 million
Total Vessel Expenses (9M 2024)	$107.9 million	$105.4 million
Depreciation & Amortization (9M 2024)	$109.9 million	$95.4 million

In summary, International Seaways, Inc. effectively manages its fleet operations, charter contracts, and maintenance to maintain a competitive edge in the maritime shipping industry.

International Seaways, Inc. (INSW) - Business Model: Key Resources

Fleet of modern tankers, including VLCCs and Suezmaxes

As of September 30, 2024, International Seaways, Inc. operates a fleet consisting of 21 owned vessels and 9 chartered-in vessels. The fleet includes:

• 3 Very Large Crude Carriers (VLCCs)
• 2 Suezmax tankers
• 1 Aframax tanker
• 1 LR2 product carrier
• 8 Medium Range (MR) product carriers

The average daily Time Charter Equivalent (TCE) rates for the fleet in the third quarter of 2024 were:

Vessel Type	Average Daily TCE Rate (2024)
VLCC	$40,111
Suezmax	$42,564
Aframax	$25,119
LR2	$39,498
MR	$29,006

The total shipping revenues for the nine months ended September 30, 2024, amounted to $757 million.

Skilled workforce for technical and operational management

International Seaways employs a skilled workforce dedicated to the operational management of its vessels. The company focuses on recruiting and retaining highly qualified personnel, ensuring adherence to safety and regulatory standards. Employee training programs are in place to maintain operational efficiency and safety protocols across the fleet.

As of September 30, 2024, the company reported general and administrative expenses of $37.5 million, reflecting the costs associated with maintaining a skilled workforce and operational management.

Strong financial position with access to credit facilities

As of September 30, 2024, International Seaways had a total liquidity of $693.8 million, which includes:

• Cash and cash equivalents: $153.3 million
• Undrawn revolver capacity: $540.5 million

The company's total debt outstanding was $650.5 million, with a net debt to capital ratio of 21%. In 2024, the company declared and paid dividends totaling $225.4 million, reflecting its commitment to returning value to shareholders while maintaining financial stability.

Future minimum revenues from non-cancelable time charters as of September 30, 2024, are projected to be approximately $344.8 million.

International Seaways, Inc. (INSW) - Business Model: Value Propositions

Reliable shipping services in the crude oil and product markets

International Seaways, Inc. (INSW) provides reliable shipping services primarily focused on the crude oil and product markets. The company generated shipping revenues of $225.2 million for the three months ended September 30, 2024, compared to $241.7 million in the same period of 2023. This decrease reflects the volatility in the shipping industry, influenced by fluctuating oil prices and demand. INSW operates a fleet that includes Very Large Crude Carriers (VLCCs), Suezmaxes, Aframaxes, LR2s, and Medium Range (MR) tankers, which allows it to cater to various market needs.

Competitive time charter equivalent (TCE) rates

INSW's average daily TCE rate for the three months ended September 30, 2024, was $36,587, down from $41,470 in 2023. Despite this decline, the company remains competitive in its pricing strategy. For the nine months ended September 30, 2024, the TCE revenues for the Crude Tankers segment were $343.6 million, marking a 12% decrease from $389.0 million in the prior year. The company attributes these changes to lower average daily blended rates across its fleet, while still maintaining a strong operational performance with a focus on optimizing fleet utilization.

Metric	2024 (3 Months)	2023 (3 Months)	Change (%)
Average Daily TCE Rate	$36,587	$41,470	-9.1%
Total TCE Revenues (Crude Tankers)	$98,821,000	$110,766,000	-10.7%
Total Shipping Revenues	$225,190,000	$241,708,000	-6.8%

Commitment to safety and environmental standards

International Seaways is committed to adhering to stringent safety and environmental standards. The company’s operations are guided by the International Maritime Organization (IMO) regulations, ensuring compliance with the highest safety protocols. INSW has demonstrated a commitment to sustainability by investing in technologies that reduce emissions, including the construction of dual-fuel ready vessels. As of September 30, 2024, INSW's total debt outstanding was $650.5 million, with a net debt to capital ratio of 21%. This financial prudence allows the company to allocate resources toward safety and environmental initiatives without compromising its operational capabilities.

Metric	Value
Total Debt Outstanding	$650.5 million
Net Debt to Capital Ratio	21%
Investment in New Technologies	Part of the $216.6 million expenditures for vessels and property in 2024

International Seaways, Inc. (INSW) - Business Model: Customer Relationships

Long-term contracts with major oil companies

As of September 30, 2024, International Seaways has secured future minimum contracted revenues from non-cancelable time charters amounting to approximately $344.8 million. This includes anticipated revenues of $36.5 million for 2024, $114.2 million for 2025, $79.6 million for 2026, $39.4 million for 2027, $34.0 million for 2028, and $41.0 million thereafter.

Responsive customer service and support

International Seaways emphasizes responsive customer service, which is reflected in their operational metrics. The company reported a total adjusted income from vessel operations of $101.9 million for the third quarter of 2024, compared to $126.7 million for the same quarter in 2023. The company's ability to maintain high service levels despite fluctuations in revenue demonstrates its commitment to customer support.

Regular communication regarding vessel status and logistics

International Seaways has implemented systems for regular communication with clients regarding vessel status and logistics. As of September 30, 2024, the company reported shipping revenues of $757.0 million for the nine months ended, reflecting a decrease from $821.0 million during the same period in 2023. This consistent flow of information is essential in maintaining customer relationships and ensuring transparency.

Year	Minimum Contracted Revenues ($ millions)
2024	36.5
2025	114.2
2026	79.6
2027	39.4
2028	34.0
Thereafter	41.0
Total	344.8

International Seaways, Inc. (INSW) - Business Model: Channels

Direct sales through charter contracts

International Seaways, Inc. primarily generates revenue through direct sales via charter contracts. As of September 30, 2024, approximately 84% of the company's total time charter equivalent (TCE) revenues were derived from the spot market, reflecting its strategy of leveraging market-leading commercial pools. The total TCE revenues for the three months ended September 30, 2024, were reported at $219.7 million, with a significant portion attributed to charter contracts.

The future minimum contracted revenues from non-cancelable time charters, as of September 30, 2024, are projected as follows:

Year	Minimum Revenue (in millions)
2024	$36.5
2025	$114.2
2026	$79.6
2027	$39.4
2028	$34.0
Thereafter	$41.0
Total Future Minimum Revenues	$344.8

Online platforms for service inquiries and bookings

International Seaways utilizes online platforms for facilitating service inquiries and bookings. This digital approach enhances customer engagement and streamlines the booking process. The company’s digital initiatives include developing an optimized web platform that supports real-time inquiries, allowing clients to access vessel availability and charter options efficiently. The integration of technology in operations has contributed to a more responsive service model, catering to the dynamic needs of their customers in the shipping industry.

Industry networking events for relationship building

Participation in industry networking events plays a crucial role in International Seaways’ business model. These events facilitate relationship building with potential clients and partners, enhancing the company's market presence. In 2024, the company actively engaged in various shipping conferences and trade shows, which are instrumental in establishing connections that lead to new charter opportunities. Networking at these events has proven beneficial in securing long-term contracts and collaborations, crucial for maintaining a competitive edge in the oil and gas shipping sector.

International Seaways, Inc. (INSW) - Business Model: Customer Segments

Oil and gas companies requiring bulk transportation

International Seaways, Inc. primarily serves oil and gas companies that require bulk transportation of crude oil and refined products. The company operates a fleet that includes Very Large Crude Carriers (VLCCs), Suezmaxes, Aframaxes, and Medium Range (MR) tankers. As of September 30, 2024, the company reported total shipping revenues of $757 million, with crude tankers contributing significantly to this figure.

The International Energy Agency (IEA) estimated global oil consumption for 2024 to be approximately 102.8 million barrels per day (b/d), reflecting an increase of 0.8% from 2023. This demand translates into a growing need for effective transportation solutions, which INSW is positioned to fulfill.

Traders and refiners needing reliable shipping options

INSW also caters to traders and refiners who require reliable shipping options for their products. The company's revenues from the product carriers segment were reported at $398.8 million for the nine months ended September 30, 2024, representing a decrease from $418.6 million in the same period of the previous year. This segment includes time charter and voyage charter revenues, which are critical for traders and refiners seeking flexibility and reliability in logistics.

The average daily Time Charter Equivalent (TCE) rate for product carriers in the third quarter of 2024 was $29,880, compared to $30,645 in the previous year, indicating market fluctuations that traders must navigate.

Commercial pools for shared vessel operations

International Seaways participates in commercial pools that allow for shared vessel operations, which are essential for optimizing fleet utilization and reducing operational costs. As of September 30, 2024, pool revenues accounted for $603.97 million of the total shipping revenues, reflecting the effectiveness of this model in maximizing asset use.

The company’s participation in pools helps to mitigate risks associated with market volatility and provides customers with competitive shipping rates. The company reported an average number of owned vessels at 21.0 for the nine months ended September 30, 2024, ensuring a robust capacity to meet the demands of pool participants.

Customer Segment	Key Metrics	Financial Impact (2024)
Oil and Gas Companies	Global Oil Consumption: 102.8 million b/d	Total Shipping Revenues: $757 million
Traders and Refiners	Average TCE Rate: $29,880	Product Carriers Revenue: $398.8 million
Commercial Pools	Pool Revenues: $603.97 million	Owned Vessels: 21.0

International Seaways, Inc. (INSW) - Business Model: Cost Structure

Operating costs related to vessel maintenance and crew

The total vessel expenses for International Seaways, Inc. (INSW) increased to $107.9 million in the first nine months of 2024, up from $105.4 million in the same period of 2023. This increase reflects higher drydock deviation costs and operational expenses associated with the fleet's maintenance.

Charter hire expenses for additional vessel capacity

Charter hire expenses for the nine months ended September 30, 2024, were $11.7 million, compared to $9.2 million for the same period in 2023, indicating an increase driven by the need for additional capacity in the Crude Tankers Lightering business.

For the three months ended September 30, 2024, charter hire expenses were $4.4 million, a rise from $2.7 million in the same quarter of 2023.

Depreciation and amortization of fleet assets

Depreciation and amortization costs rose to $60.6 million for the nine months ended September 30, 2024, from $56.6 million in the prior year. For the third quarter of 2024 alone, these costs were $20.5 million, up from $20.0 million in the same quarter of 2023.

Cost Category	Q3 2024 ($ million)	Q3 2023 ($ million)	9M 2024 ($ million)	9M 2023 ($ million)
Vessel Expenses	37.1	35.5	107.9	105.4
Charter Hire Expenses	4.4	2.7	11.7	9.2
Depreciation and Amortization	20.5	20.0	60.6	56.6

International Seaways, Inc. (INSW) - Business Model: Revenue Streams

Time charter and voyage charter revenues

The primary revenue streams for International Seaways, Inc. (INSW) come from time charters and voyage charters. For the nine months ended September 30, 2024, the company reported:

Revenue Source	Amount (in thousands)
Time charter revenues	$99,030
Voyage charter revenues from non-variable lease payments	$9,362
Voyage charter revenues from variable lease payments	$545
Total Shipping Revenues	$757,000

In the third quarter of 2024, the average daily Time Charter Equivalent (TCE) rates were:

Vessel Type	Average TCE Rate (in thousands)
VLCC	$40,111
Suezmax	$42,564
Aframax	$32,997
MR	$33,912

The TCE revenues for crude tankers for the nine months ended September 30, 2024, were $343.6 million, while for product carriers, it was $398.8 million.

Pool revenues from commercial partnerships

International Seaways also earns significant revenues from pool arrangements. For the nine months ended September 30, 2024, the pool revenues were:

Segment	Pool Revenues (in thousands)
Crude Tankers	$246,979
Product Carriers	$356,991
Total Pool Revenues	$603,970

In comparison, for the nine months ended September 30, 2023, the total pool revenues were $701,634, indicating a decrease in pool revenues year-over-year.

Additional income from lightering services and ancillary operations

International Seaways provides lightering services, which also contribute to its revenue streams. For the nine months ended September 30, 2024, the revenue from lightering services was:

Service Type	Revenue (in thousands)
Lightering Services	$44,638

In the previous year, this revenue was reported at $36,864 for the same period, reflecting growth in lightering operations.

Updated on 16 Nov 2024

Resources:

1. International Seaways, Inc. (INSW) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of International Seaways, Inc. (INSW)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View International Seaways, Inc. (INSW)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.