U.S. Shipping Partners L.P.Connecticut Maritime Association “Shipping 2007”

March 21, 2007Presentation by Paul B. Gridley, CEO

U.S. Shipping Partners L.P.Connecticut Maritime Association “Shipping 2007”

March 21, 2007Presentation by Paul B. Gridley, CEO

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Safe HarborSafe Harbor

This presentation contains forward-looking statements which reflect management’s current views with respect to certain future events and performance, including statements regarding U.S. Shipping Partners L.P.’s (“U.S. Shipping” or the “Partnership”) future growth prospects; tanker market fundamentals, including the balance of supply and demand in the tanker market and sources of incremental oil production, and spot tanker charter rates. The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: changes in the production of or demand for oil, petroleum products and chemical products, either generally or in particular regions; changes in oil companies’ operating and sourcing decisions; levels of foreign imports; competition for marine transportation; future spot market rates; the potential for early termination of long-term contracts and inability of the Partnership to renew or replace long-term contracts; greater or less than anticipated levels of ship newbuilding orders or greater or less than anticipated rates of scrapping; shipyard production delays and/or cost overruns; the success of the Partnership’s tanker construction joint venture; the ability to cost-effectively retrofit or repurpose the Partnership’s six integrated tug barge units; the continuation of federal law restricting U.S. point-to-point maritime shipping to U.S. vessels (the Jones Act); changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations; the effect of weather, war or terrorist activities; the availability of cargoes to transport and other factors discussed in U.S. Shipping’s filings from time to time with the SEC. The Partnership expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Partnership’s expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

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Business OverviewBusiness Overview

Existing Service RoutesExisting Service Routes Existing Customer Base Existing Customer Base (1)(1)

U.S. Shipping maintains diversified service routes for its high-credit quality customers

ShellSpot

Charters

Charleston

________________________(1) Represents the percentage of the fleet dedicated to each customer segment based upon revenue. (2) Includes Sea Venture vessel and ATB currently under construction.

Chemical Charters(2)

CHERRY POINT

CORPUSCHRISTI

FREEPORTHOUSTON

PORT ARTHURLAKE CHARLES

PORT EVERGLADES

JACKSONVILLE

NEW YORKPHILADELPHIA

LONG BEACH

SAN FRANCISCO

Baltimore / GrotonJacksonville / MobilePhiladelphiaNew YorkChemical Pioneer/ Sea Venture

Houston

TAMPA

Shell

WILMINGTON

SAVANNAHCHARLESTON

NEW ORLEANS

10%

10%

10%

20%30%

20%

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Business OverviewBusiness Overview

Fleet / Assets Commentary

Six U.S. flagged ITBs– Acquired from Hess in 2002– 48,000 dwt

Double-hull Houston acquired in 2005Well maintained, high quality modern fleetStrong operating and safety recordCurrently constructing four sophisticated product/chemical ATBsand 9 product tankers

Stable and diversified revenue stream Long term charters ITBs are “sister ships”; redundant safety features result in low down-time; smaller crew provides cost advantagesBeginning in 2012 the ITBs will have to be retrofitted, repurposed or phased-out due to OPA 90

Clear market leadership position in Jones Act chemicals transportation

– Versatile and high quality U.S. flagged specialized product/chemical carriers

– Strong operating and safety recordChemical Pioneer acquired in May 2003, Charleston in April 2004, and Sea Venture in November 2005Currently constructing one sophisticated ATB for transportation of chemical products

Long term contracts of affreightmentMost sophisticated vessels in the fleetHighly creditworthy customersPetrochemical and specialty chemical shipments have grown steadilyTwo vessels with over 40 segregations

Product Tankers

Parcel Tanker Fleet

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U.S. Shipping’s HistoryU.S. Shipping’s History

2002 2004 2005

Acquisition Newbuild ConstructionIPOATBFormation Specialty Chemicals Acquisition

6 Vessels 8 Vessels

September 2002 • U.S. Shipping

formed to acquire six ITBs from Amerada Hess. ITB’s were built during 1982-1984.

2003

7 Vessels

May 2003• Acquired Chemical

Pioneer from Dow Chemical and entered the specialty chemicals transport business

April 2004• Acquired second

chemical vessel, the Charleston, from Exxon Mobil

August 2004• Signed contract

for construction of ATB; currently scheduled to be delivered into our chemical business second quarter of 2007

October 29, 2004• U.S. Shipping

priced its Initial Public Offering and listed on the NYSE (“USS”). At the time, it was the lowest IPO yield in the history of the MLP market

NYSE

“USS”

September 2005• Acquired Houston,

our first double-hull product tanker

10 Vessels

November 2005• Acquired Sea

Venture, our third chemical vessel

2006

10 Vessels

February 2006 • Signed contract to

construct four ATBs

March 2006• Signed contract

with NASSCO for construction of 9 product tankers, with five option tankers

August 2006• Completed the

joint venture with Blackstone and the refinancing

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ATB SpecificationsATB SpecificationsATBs have numerous competitive advantages: greater speed, enhanced cargo flexibility, and lower daily operating cost relative to competing units

ATB Specifications– Cargo capacity……………….…………..………… 19,999 dwt / 160,000 bbls– Maximum service speed…....….……………….… 13.5 knots– Hull structure……………………..……...………… Double-hulled (OPA 90 compliant)– Propulsion type……….…………..……….………. Twin medium speed diesel burning heavy fuel oil (IFO 180)– Fuel consumption……………….…………….…… 38 tons / day– Number of cargo segregations.…………………... 5 (MMG barges)– Classification (1)……………………….…………… Tug: ABS A1 Ocean Service, Barge: ABS A1 Oil and Chemical

___________________________(1) The American Bureau of Shipping (“ABS”) is an independent classification society that inspects the hull and machinery of commercial ships to assess compliance with minimum criteria as set

by US and International regulations. The classification of “+A1” is ABS’ highest hull structure classification.

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Tanker SpecificationsTanker Specifications

CharacteristicsLength (overall) .................................. 183 m

Beam (molded) .................................. 32 m

Draft (full load) ................................... 11.8 m

Speed ................................................ 14.8 knots

Capacity ............................................ 336,500 bbls

Propulsion...........................Single Screw, Slow Speed Diesel

Segregations ......................7

Pumping System ................Framo Deep Well

These tankers will be among the largest and most technically advanced sailing in U.S. waters

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The US Shipping “Brand”- Multiple StakeholdersThe US Shipping “Brand”- Multiple Stakeholders

Just as the ATB’s or tankers offer a different look depending on the viewpoint, so it is with branding.

US Shipping’s brand attributes and perceptions really depend on who you are asking.

Our brand is seen by Multiple Stakeholders

•Our oil and chemical company customers

•The regulatory community

•Our investors & the financial community

•Our employees ashore & at sea

•The general public

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Branding: Oil and Chemical Company CustomersBranding: Oil and Chemical Company Customers

An integral link in our customers’ supply chains, functioning at or above our customers’ own very high standards

“Meeting customer demand” impacts USS at a strategic levelsOrders of ATB’s and NASSCO product tankers were a direct response to customer desires for modern vessels.Stringent guidelines from our customers provide important direction for our own policies.

The reputations of our customers depends on our performanceWe seek to exceed the expectations of our customers commercially and operationally. Our actions impact our customers’ successes further down their supply chains. The high quality that we provide mirrors that of our customers’ internal guidelinesWe seek to exceed regulatory minimums for safety and environmental compliance.Customers gain confidence in USS because of our reputation for compliance with regulatory requirements.

We place great importance on seamless communications with our customers, and responsiveness to their needs, at all levels

We perform vital roles within our customers’ commercial programs and inventory management activities

A quote from one of the best known consumer marketers:"Your brand is created out of customer contact and the experience your customers have of you" –Sir Stelios Haji-Ioannou, Chairman, EasyGroup

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Branding: The Regulatory CommunityBranding: The Regulatory CommunityA safety conscious and environmentally respectful operator of tonnage in compliance with all applicable rules and regulations

Safe vessel operation and a safe workplaceOur vessels comply with applicable safety regulations at all levels, wherever we are operating

Chamber of Shipping of America AwardsJohn F. Devlin Award- for Safety- 2005Environmental Achievement Award- 2005

An environmentally friendly businessOur vessels are routinely operating in demanding areas of Puget Sound and the ports in California.We seek to comply with environmental regulations at Federal, State and local levels

2006 Benkert Awards: US Shipping LP received “Honorable Mention”Presented at American Petroleum Institute (API) Tanker Conference- June 2006 by the U.S. Coast GuardRecognizes USS’s efforts in “achieving marine environmental protection, going beyond mere compliance with industrial and regulatory standards”Company received similar awards in 1997 and 2002

A “Whistle-blower” hotline for promoting safety, security and ethical behaviorIndependently operated telephone and email communications channel for reports

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Branding: Our Investors & the Financial CommunityBranding: Our Investors & the Financial Community

Our investors expect a company with full transparency regarding financial performance and corporate governance

Public listing for our partnership units since 4Q 2004Open and responsive dialogue with financial analysts from Buy Side, Sell Side, and Ratings Agencies.

We initiated a capital program of up to $1.3 Billion through 2014Financing through strategic partnership with major private equity investors.Combination of bank and private placement debt finance.

Investors’ expectations for highest levels of corporate responsibility, trustworthiness and ethical standards

Investors gain confidence through our customer responsiveness, compliance with regulatory requirements, and attention to our employees.

Investors must have confidence that we are managing our fleet for optimum performance and efficiencies.

On-hire days exceed industry norms.

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Branding: Our Employees Ashore & At SeaBranding: Our Employees Ashore & At SeaWe employ 50 people ashore, and 300 at sea:

Objective: Employee team in alignment with company goals and objectivesRecruitment program demands an attractive image

We seek to be employer of choice for top graduates of maritime schoolsSeek to present company as an attractive working environment with opportunities to advance, both ashore and onboard vessels

After recruitment comes retentionMarket for quality high performing employees is competitiveSeek to present the progressive nature of the companyEmployees who are empowered and motivated are better performers

Customer facing activities exist throughout the companyWe need to portray a consistent message throughout the companyShore and sea staff often dealing directly with customers, at multiple levels

Tools that we use to communicate our branding internallyTwice a year meetings for Senior Officers (Masters, Chief Engineers)Company website at http: //www.usslp.comFrequent staff meetings at Senior and Operational levelsAdvanced wide area network (WAN) systems linking ships and offices

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Branding: Our Employees Ashore & At SeaBranding: Our Employees Ashore & At Sea

“I’ve always tried to put my self in a position where I’m working on the newest technology. And right now the only company that’s moving forward on this is U.S. Shipping. That’s why I’m here.”

Greg Shelton

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Branding: The General PublicBranding: The General Public

Shipping also has a public faceThe Jones Act owes its wide support to the American public.

The Jones Act accounts for $26 Billion private sector investment in vessels and infrastructure.The Jones Act generates nearly 125,000 jobs.

Our employees and investors as ambassadors in front of the public at large.

Unfortunately, accidents/ casualties of commercial ships bring additional public visibility to the industry.

We seek to be pro-active in our operations, so that accidents and casualties hopefully will not occur.A good reputation is important, in the unlikely event of an accident, with public scrutiny.We have developed numerous contingency plans, and prepare our staff to handle incidents through continued drills, exercises and simulations.

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Branding: Industrial versus ConsumerBranding: Industrial versus Consumer

Industrial

In our Jones Act trades, brand & reputation do indeed matter.

Commodity-like nature of international shipping is less applicable in our Jones Act trades.

Transparency of process is crucial in all our activities. Differs from consumer branding.

Within supply chains, we may be invisible.

Consumer

Distinctiveness and unique qualities are important.

Many products are given personalities

Marketers tap into consumers’emotions, including ties to celebrities

Technical and operational aspects are usually invisible

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