North Sea: broker says tide has changed in favour of charterersNews // November 5, 2013
Seabrokers says it believes that spot fixture rates in Northwest Europe will start to reduce as we approach the winter months.
"Perhaps inevitably, the changing of the seasons has seen a dramatic increase in the number of vessels available on the spot market, and has also seen considerable decreases in spot rates," said Seabrokers in its latest monthly report, Seabreeze.
"The drilling market remains extremely buoyant, and the tightness in that market means there will be no reduction in drilling activity over winter.
"However, reduced activity in the subsea segment has turned the tide in the favour of charterers, with a number of vessels concluding contracts and returning to the spot market.
"This has coincided with the deliveries of six newbuild PSVs and one AHTS vessel from European yards, the majority of which have joined the local spot market.
"The combination of these factors has increased vessel availability, with the associated rise in competition leading to a reduction in rates," Seabrokers concluded.