Market becoming over-tonnaged says OSLNews // July 6, 2007
Offshore Shipbrokers Ltd (OSL) in the UK has used the latest issue of its monthly report to raise the spectre of significant over-supply in the worldwide support vessel market.
In its latest monthly report on the market, OSL said: "Speaking of newbuild orders, despite the general consensus that the market is starting to look somewhat ‘over-tonnaged’ over the next few years, we are still seeing a large number of newbuild vessel orders being placed."
"With an orderbook now approaching 600 vessels this is expected to cause an increase in the worldwide fleet by some 40 per cent," said OSL.
"At a conference earlier this year in London a well known market analyst gave their view that even with anticipated growth in China and India, the level of world wide demand is only expected to grow by circa 6 per cent over the next few years. It is therefore fairly evident that with supply vastly overtaking demand, there is only one effect this can have on the market in the longer term," OSL concluded.