As previously announced, due to market conditions, the Partnership may fall out of compliance with these covenants as measured at the end of the second or third quarter. There can be no assurance that the negotiations to amend these covenants will be successful. If the Partnership is not in compliance with its financial covenants, the lenders will have a number of remedies, including preventing the Partnership from making additional borrowings under its revolving credit facility and not permitting the Partnership to make distributions on its common units until the Partnership is again in compliance. The Partnership expects that any amendment to its financial covenants will require the payment of fees and a higher rate of interest, which would negatively impact the Partnership's results of operations, and will likely require the suspension of the Partnership's common unit distribution.

About U.S. Shipping Partners L.P.

U.S. Shipping Partners L.P. is a leading provider of long-haul marine transportation services, principally for refined petroleum products, petrochemical and commodity chemical products, in the U.S. domestic "coastwise" trade. The Partnership's existing fleet consists of eleven tank vessels: six integrated tug barge units; one product tanker; three chemical parcel tankers and one ATB that was delivered in June 2007 and entered service in July 2007. The Partnership has embarked on a capital construction program to build additional ATBs and, through a joint venture, additional tank vessels that upon completion will result in the Partnership having one of the most modern fleets in service. For additional information about U.S. Shipping Partners L.P., please visit www.usslp.com.

This press release may include "forward-looking statements" as defined by the Securities and Exchange Commission. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by the Partnership based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership, which may cause our actual results to differ materially from those implied or expressed by the forward-looking statements. Such assumptions, risks and uncertainties are discussed in detail in the Partnership's filings with the SEC and include, among other things, the willingness of our lenders to amend our credit agreement on commercially acceptable terms, increased financing costs, future charter rates, demand in the spot market for vessels and timely and on-budget delivery in the second half of 2008 of two ATBs currently under construction.

Contact Information:
Albert Bergeron
Chief Financial Officer
U.S. Shipping Partners L.P.
1-866-467-2400

SOURCE: U.S. Shipping Partners L.P.

"We thank Paul for his dedicated work on behalf of the Partnership, and we look forward to benefiting from his continued strategic guidance," said Mr. O'Kelley. "Under Paul's leadership and vision, we have assembled a superb management team, a valuable asset base and an impressive customer franchise. Having faced a number of challenges this year, we are focused on enhancing our financial position and delivering on our commitment to safety and efficiency in meeting customer and industry standards. I am confident that the company is taking the right steps to move forward on a sound basis."

Ronald L. O'Kelley joined the Board of Directors of our general partner in October 2004. Mr. O'Kelley is Chairman and Chief Executive Officer of Atlantic Coast Venture Investments Inc., a private investment company. Mr. O'Kelley served as Executive Vice President, Chief Financial Officer and treasurer of State Street Corporation from 1995 to 2002, as Chief Financial Officer at Douglas Aircraft Company from 1991 to 1995 and as Chief Financial Officer at Rolls Royce Inc. from 1983 to 1991. He also served in senior financial positions at Citicorp from 1975 to 1983 and at Texas Instruments Incorporated from 1969 to 1975. Mr. O'Kelley is also a director of Selective Insurance Group, Inc. Mr. O'Kelley serves as an advisor to the Donald Jones Center for Entrepreneurship at the Tepper School of Business and is a member of the National Association of Corporate Directors.

About U.S. Shipping Partners L.P.

U.S. Shipping Partners L.P. is a leading provider of long-haul marine transportation services, principally for refined petroleum products, in the U.S. domestic "coastwise" trade. U.S. Shipping Partners L.P. is also involved in the coastwise transportation of petrochemical and commodity chemical products. For additional information about U.S. Shipping Partners L.P., please visit www.usslp.com.

This press release may include "forward-looking statements" as defined by the Securities and Exchange Commission. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by the Partnership based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership, which may cause our actual results to differ materially from those implied or expressed by the forward-looking statements. Such assumptions, risks and uncertainties are discussed in detail in the Partnership's filings with the SEC and include, among other things, the willingness of our lenders to amend our credit agreement on commercially acceptable terms and to continue to make advances to us under our revolving credit facility to meet our working capital requirements, increased financing costs, no occurrence of an event of default under our credit agreement that would allow our lenders to demand immediate repayment of all outstanding borrowings under the credit facility, future charter rates, demand in the spot market for vessels and timely and on-budget delivery in the second half of 2008 of two ATBs currently under construction.

Contact Information:
Albert Bergeron
1-866-467-2400

SOURCE: U.S. Shipping Partners L.P.

U.S. Shipping Partners previously announced that the third ship will be named "Sunshine State," in honor of the state nickname of Florida.

General Dynamics NASSCO employs approximately 4,700 people and is the only major ship construction and repair yard on the West Coast of the United States. In addition to the Product Carrier ship program, NASSCO is also building the Lewis and Clark-class of dry cargo-ammunition ships for the U.S. Navy. Additional information on NASSCO can be found at http://www.nassco.com.

General Dynamics, headquartered in Falls Church, Va., employs approximately 84,000 people worldwide and reported 2007 revenues of $27.2 billion. The company has leading market positions in mission critical information systems and technologies, land and amphibious combat systems, shipbuilding and marine systems, and business aviation. More information about the company is available on the Internet at http://www.generaldynamics.com.

SOURCE General Dynamics NASSCO

http://www.nassco.com