ABERDEEN, UK – The global offshore support vessel (OSV) market continues to face difficult conditions, according to collaborative research between Braemar ACM Shipbroking and Westwood Global Energy Group.
They estimated that the global market last year for OSVs fell from 55% in 1Q 2020 to 49% in 3Q 2020.
This followed a steep drop in rig activity, new project cancellations/deferments, and logistical challenges due to the COVID-19 pandemic.
Vessel owners responded by stacking idle fleets, with global lay-ups accounting for almost 33% of total capacity.
In 1Q 2021, effective use of the fleet (excluding stacked vessels) was an estimated 73%.
According to Westwood, owners and operators that wish to remain competitive should consider further measures for fleet rationalization, while also being mindful of the financial and environmental costs associated with scrapping.