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    North Sea spot market stronger recently says broker

    News // June 19, 2013

    Broker and consultants Nor-Ocean Offshore says the spot market for PSVs in the North Sea has been "very strong recently."

    The PSV spot has been very strong recently, with average rates for the week ending 14 June above the highest levels seen in both 2011 and 2012 and charters taking on AHTS tonnage for cargo runs due to limited PSV availability.

    "Four newbuilds are expected to be delivered the next two weeks which is likely to help ease the pressure seen in the PSV spot recently," said the broker.

    The North Sea PSV fleet currently includes 232 vessels, up 17 vessels y-o-y (+8%). Term fleet currently counts 195 vessels, up 15 y-o-y (+8%). The North Sea PSV spot fleet stands at 37 vessels, up two vessels y-o-y

    "We still remain somewhat cautious on the PSV segment due to the expected supply growth, but are less pessimistic now than six months ago on the back of strong term demand seen in the North Sea," the broker said, noting that demand from outside the North Sea is absorbing tonnage, It also expects to see Petrobras returning for incremental tonnage in the next 12 months.

    "However, the supply growth still remains significant (orderbook 42% in high-end segment globally) and we do as such think an upcycle still is some time ahead," the broker concluded.

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