Farstad comments on the marketNews // August 30, 2006
Support ship operator Farstad says the market balance for the supply vessel fleet was "good" during the second quarter of 2006, and noted particularly the increase in activity in the North Sea, which it said had been important to absorb the number of PSVs delivered during the first half year. "The rate level is improving in all markets both for the AHTS and the PSV. The rate level for the AHTS fleet is expected to further improve during second half 2006 and into 2007. Rate improvement for the PSV fleet is dependent on continued sound absorption of the new buildings being delivered and that is a less clear picture," said the company in a statement issued at the end of August.
Farstad said demand for supply vessels in the North Sea during the second quarter was approximately 5 per cent higher than for the first quarter, and 12 per cent higher than in the second quarter of 2005.
In terms of numbers of vessels, the North Sea fleet was 5 per cent higher than the end of 2005, and 8 per cent higher than at the same time last year. "Average utilization for the second quarter - approximately 95.5 per cent - has resulted in record spot rates. This has influenced the rate level in other markets," Farstad noted.