Topsy turvy market in North Sea currently says brokerNews // April 11, 2008
Broker Braemar Seascope Offshore says the North Sea spot market remains "mixed and characterised by significant spikes for a week or so followed by extended periods of relatively low activity/rate levels."
"Presumably utilisation/revenue figures for those vessels trading the short term market are lower than at the same time last year but this is not being reflected (yet) to any great degree when vessel owners are bidding for medium/long term work," said the broker in its latest report on the market.
"Clearly the expectation amongst vessel owners is that rate/utilisation levels on the spot market will begin to increase as the North Sea ’season’ approaches and that the patchy trading conditions for the first quarter of 2008 are temporary," said the company.
"However, the evidence for this in the medium PSV sector is not clear cut given that a handful of rigs have left the North West European fleet over the last few months coupled with the delivery of a steady flow of charter free newbuilding tonnage."
"However, from an owners’ perspective an improvement is possible given the number tenders now outstanding and the departure of a significant number of medium/large PSVs to other offshore regions," the broker concluded.