Sales volumes for OSVs are at all time highs, but this has yet to translate into a meaningful – and needed – leap in rates, according to the latest report from Fearnley Offshore Supply.
The rig activity for both jack-ups and floaters have started to increase, and rate levels have doubled in some regions, Fearnley noted, adding that for OSVs, sales volumes are at a “historically high level”, as are the attrition of ships, while utilisation is on the rise in several regions.
However, OSV owners have yet to reap the benefits of these developments to any significant degree, Fearnley observed.
In the North Sea with Brent crude now in the mid-$80s per barrel, Fearnley stated OSV optimism is back, predicting a proper upturn from spring next year.
Meanwhile, further east offshore activity is notably picking up in Asia.
“Forecasted jack-up rig activity in Asia, and particularly in Malaysia, is at the highest levels in four years giving hope of a slow recovery in vessel demand,” Fearnley stated.
Commenting on the report, Mike Meade, head of Singapore offshore brokers M3 Marine, said overcapacity will continue to hold back any rates push for OSVs.
“Stable and relatively high oil prices will not lead to an increase in charter rates any time soon. There is just too much steel on the water and too many vessels still to deliver,” Meade told Splash today, observing how assets are still trading hands at distress levels.