The movie opens with the original theme of TUGS. The Star Fleet, a tugboat company owned by Captain Ronald Star, has just regained the Ocean Liner Contract for the second year running, and their first ship, the Princess Alice, is due to be docked a week later. The fleet consists of Ten Cents and Sunshine, both switchers, Big Mac, O.J., and Warrior, the harbor tugs, Hercules, an ocean tug, a switcher on loan from Ggibs City, Emily McAllister and Top Hat, a railway tug. The movie starts with Captain Starr announcing the receival of the contract, and the Stars are rewarded with complete overhauls once they dock the Princess.