Despite projected demand recovery post-2020, the global offshore support vessel (OSV) market continues to face a utilisation challenge – this is according to collaborative research from Braemar ACM Shipbroking (Braemar), one of the world’s largest chartering, derivative and S&P shipbroking companies and Westwood Global Energy Group (Westwood), the specialist energy market research and consultancy firm.
Over the course of 2020, estimates for total utilisation for the global OSV market fell from 55% in 1Q2020 to a low of 49% in 3Q2020 following a sharp decline in rig activity, FID cancellations/deferments and significant logistical challenges posed by the global pandemic. In efforts to reduce operating costs, vessel owners have been quick to stack idle fleets, with global lay-ups accounting for almost 33% of total capacity. With effective utilisation (excluding stacked vessels) estimated at 73% in 1Q2021, owners and operators who wish to remain competitive must consider future tactics for fleet rationalisation, factoring in ageing fleets alongside the financial and environmental costs associated with scrapping.
Source: Global Offshore Navigator Report
Delivered as part of a market first collaboration, the Global Offshore Navigator report means industry professionals can now benefit from the marriage of brokerage firm market insights alongside detailed forecasting intelligence. Through this enhanced understanding of the regions, customers and asset types that will drive future investment, investors and fleet managers alike will have unprecedented clarity on growth opportunities such as renewables and strategic business planning decisions.
“As the market looks to refortify in the post-pandemic era, this partnership couldn’t have arrived at a better time” said Mark Chesterfield, Managing Director, Braemar ACM Offshore.
Mark continues, “When we look at the utilisation challenge, for example, the combination of Braemar’s day-to-day working knowledge with Westwood’s forward-looking insight enables us to present the real-world challenge and follow this up with actionable solutions. In this way, we are breaking the vacuum pattern of working that has historically limited the growth of offshore operations and supporting the wider industry with its recovery.”
Thom Payne, Head of Offshore Energy Services, Westwood said: “The opportunity to collaborate with a renowned brokerage firm such as Braemar is particularly exciting for both Westwood and the offshore industry. Having access to this fleet intelligence powered by Braemar’s superior data and in-house experts has enabled us to enrich our forecasts through additional stress-testing. This heightened accuracy across predicted rates, utilisation and demand allows us to present a robust, actionable route for industry decision makers.”
Thom continues: “Whether you’re involved in investor relations, internal strategy or fleet manager operations, this partnership and the subsequent Global Offshore Navigator report raises the bar when it comes to combining the big picture with the on-the-ground detail, and we look forward to the roll out and future editions.”
The Global Offshore Navigator report is available now for download, featuring three-five-year activity forecasts, intuitive charts and visuals to support internal presentations, external marketing and investor relations material.
Read the latest issue of the OGV Energy magazine HERE.
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