TAMPA, Fla. –
Overseas Shipholding Group, Inc. (NYSE: OSG) ( “OSG”), a provider of
energy transportation services for crude oil and petroleum products in
the U.S. Flag markets, announced today that it has signed a binding
contract with Gunderson Marine LLC (“Gunderson Marine”), a wholly-owned
subsidiary of The Greenbrier Companies, Inc. (“Greenbrier”), for the
construction of one 204,000 barrel capacity oil and chemical tank barge
for dual mode ITB service pursuant to U.S. Coast Guard NVIC 2-81, Change
1, for anticipated delivery to OSG during the second quarter of 2020.
This barge will be constructed at Gunderson’s Portland, Oregon building
facilities and will be built to comply with MARPOL Annex VI Regulation
13 Tier III standards regarding nitrogen oxide emissions within emission
control areas. The state-of-the-art 581′ tank barge is among the largest
in the history of Gunderson Marine, with origins on the Willamette River
in Portland dating to 1919.

OSG intends that the vessel, following delivery, will be registered
under the U.S. Flag with a coastwise endorsement, allowing it to be
employed in Jones Act trades. The barge will be constructed to pair with
existing tugs within OSG’s current fleet for operation as an articulated
tug barge or ATB unit. The agreement with Gunderson Marine also provides
OSG with an option to construct a second sister barge which would have a
scheduled delivery date during the 4^th quarter of 2020.

“The Gunderson Marine contract for construction of a new barge is an
exciting development for OSG,” said Sam Norton, OSG’s President and CEO.
“This transaction represents the first significant new capital
investment into our Jones Act businesses in nearly a decade and is an
affirmation of our commitment to operate ATBs, as well as tankers,
within this market. Following on from the two tanker contracts announced
earlier this month, this additional newbuild initiative underscores our
leading presence in the U.S. Flag petroleum transportation sector. We
look forward to the contribution that this effort will make to our
long-term success.”

“Our partnership with OSG for new ATB construction builds on Gunderson
Marine’s strong reputation for providing safe and efficient ocean-going,
Jones Act barges for the transportation of petrochemicals, crude oil,
refined petroleum products and chemicals,” said William A. Furman,
Greenbrier Chairman and CEO. “Operating from the largest side launch on
the west coast, Gunderson Marine is the only shipyard in the western
United States with successful experience in building ATBs of the type we
will deliver to OSG.”

“Gunderson is a great place to work and our agreement with OSG fortifies
a strong baseload of business over the next few years,” said Mark
Eitzen, Senior Vice President and General Manager of Gunderson. “We have
recently added more than 100 workers to our Portland waterfront
operations to support our expanded manufacturing of both marine and rail
products. We expect to add at least 150 new jobs over the next several
months, all with competitive pay and benefits, as our total employment
in Portland moves above 1,200 people.”

About Overseas Shipholding Group, Inc.

Overseas Shipholding Group, Inc. (NYSE:OSG) is a publicly traded company
providing energy transportation services for crude oil and petroleum
products in the U.S. Flag markets. OSG is a major operator of tankers
and ATBs in the Jones Act industry. OSG’s 23-vessel U.S. Flag fleet
consists of seven ATBs, two lightering ATBs, three shuttle tankers, nine
MR tankers, and two non-Jones Act MR tankers that participate in the
U.S. MSP. OSG is committed to setting high standards of excellence for
its quality, safety and environmental programs. OSG is recognized as one
of the world’s most customer-focused marine transportation companies and
is headquartered in Tampa, FL. More information is available at www.osg.com.

Forward-Looking Statements

This release contains forward-looking statements as defined under the
federal securities laws. Words such as “may”, “should”,” believes”,
“estimates”, “targets”, “anticipates” and similar expressions generally
identify forward-looking statements; however, statements other than
statements of historical facts should be considered forward-looking
statements. Forward-looking statements are based on OSG’s current plans,
estimates and projections, and are subject to change based on a number
of factors. Investors should also carefully consider the risk factors
outlined in more detail in the Annual Report on Form 10-K for OSG and in
similar sections of other filings made by OSG with the SEC from time to
time. The Company assumes no obligation to update or revise any
forward-looking statements. Forward-looking statements and written and
oral forward-looking statements attributable to OSG or its
representatives after the date of this release are qualified in their
entirety by the cautionary statements contained in this paragraph and in
other reports previously or hereafter filed by OSG with the SEC.

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Overseas Shipholding Group, Inc.
Investor Relations & Media Contact:
Susan
Allan, 813-209-0620
sallan@osg.com