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    Broker describes "turbulent" but good market

    News // July 8, 2005
    Offshore Shipbrokers Ltd (OSL) says the spot market during May and June was once again "a turbulent ride" for both owners and charterers with rates fluctuating from week to week.

    However, said OSL in its latest monthly report, the general situation remains good for owners with the majority of vessels continuing to achieve good utilisation at very good rates, especially when compared to levels seen this time last year.

    "May was undoubtedly the better of the two months for AHTS owners in particular with rates ofœ40,000 being a regular occurrence. This situation did not last long into June however withaverage rates dropping to around the œ18,000 level by the middle of the month where they remainat the time of writing," said OSL.

    The PSV market has been slightly more stable with rates fluctuating generally between theœ15,000 - œ25,000 levels however obtaining an overall average of œ21,000 over the last two months.

    OSL said availability for PSVs is now becoming very limited with much of the fleet undertaking term work supporting a variety of drilling and pipe haul programmes through the summer months. This is forcing charterers to turn to AHTS to undertake cargo work with one vessel being fixed during the end of May at œ50,000 for a cargo run.

    "With the rig market for the remainder of 2005 being virtually sold out and a steady stream of freshterm requirements coming to the market it looks very much like the second half of the year will beequally as buoyant. Looking ahead into next year, the situation is once again beginning to seemvery similar with a number of operators having to slip drilling programs into 2006 due to the current lack of rig availability," noted OSL, although it cautioned that, with a large number of newbuild orders now having been placed for delivery next year it will be interesting to see what effect this increase in availability has on day rates.

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