Fearnleys Offshore Supply has called the bottom of the OSV market, predicting a slow recovery, while also suggesting national governments step in and remove a swathe of the fleet.
Fearnleys has built up a strong reputation for its OSV reports and the latest publication has not disappointed.
Fearnleys noted that the large number of cold-stacked OSVs, laid up in remote areas, may create challenges for local authorities when owners go bankrupt, leaving the ships where they are.
“We have already seen how abandoned OSVs that saw ‘less than ideal’ maintenance eventually end up as wrecks when they were hit by bad storms. And even in the absence of storms, just consider the pollution caused by leakage, rust, and general contamination associated with ships simply locked up and left tied to a dock. At one point, the government in countries such as Indonesia, USA, and Mexico to name a few, simply have to step in and remove these vessels if the industry itself cannot,” Fearnleys suggested, hinting that this could be the solution that nudges the supply and demand balance to a sustainable point.
In the report, Fearnleys said it was “optimistic” about the future.
“Regardless of how slow we are moving towards a balance, it is great to register that what has arguably been the worst crisis for the OSV industry ever is perhaps finally coming to an end,” the brokerage claimed.