Over-supply in North Sea market but better times aheadNews // November 5, 2012
Seabrokers says the offshore support vessel market in the North Sea in October was a month characterised by oversupply of both PSVs and AHTS.
In its latest monthly report on the market, Seabrokers said PSV average rates were both down on the same period last year and last month.
AHTS rates suffered even more, being heavily down on the same period last year and significantly down on last month.
"Rather than a reduction in demand, the overriding problem for shipowners proved to be a spot market choked with vessels, a heightening of the problem that has been prevalent for much of 2012," said the broker.
However, it is not all "doom and gloom" for shipowners, the broker said, noting that the oil price remains high, encouraging oil companies to proceed with developments, and that the UK’s latest licensing round attracted the highest number of applications for one round.
"Drilling activity is expected to remain constant throughout the winter, and rig owners continue to order newbuild units in anticipation of sustained activity on a long-term basis," said Seabrokers.