Page 15: of Offshore Engineer Magazine (Jan/Feb 2021)

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recent sales have seen the likes of the Hanks Tide and Dulaca ity in the OSV space is their relative attractiveness, and lack

Tide sold to Baltic Marine and Hudson Offshore, respectively. thereof, to recycling yards in comparison to alternatives in the

DOF sold the Skandi Giant to Hai Duong in August 2020, shape of large, cheap drilling rigs and merchant vessels. while in June of the same year, Maersk sold the Maersk Advancer That attractiveness is re?ected in the relatively low scrap and Maersk Asserter to Karadeniz. These vessels, and many oth- prices achieved for AHT(S) and PSV vessels. Fundamentally, ers continue to trade, lengthening the wagging tail still further. OSVs are signi?cantly smaller and contain less valuable parts

Kim Heng has also been an aggressive buyer of tonnage than drilling rigs or merchant vessels. This disincentivizes from distressed sellers in the downturn. Its subsidiary, Bridge- scrapping. Indeed, the scrap price of OSVs in Northern Eu- water Offshore acquired four ships from the collapsed Ter- rope is arguably negative.

aseas business, including the Salvanguard and Salvigilant for Assuming a theoretical scrap price of $300/ldt, the aver- an en bloc $4.8m price. Bridgewater also purchased the Sal- age OSV scrapped between 2010-20 would be worth just veritas and Salviceroy for $5.2m combined. The business has $461,000 to a recycling yard, arguably lower than the reposi- a stated intention to “invest for the future in cycle positioning tioning costs associated with transporting a vessel. This stands so as to take advantage of buying distressed assets at signi?- in marked contrast to the ~$3-4m value of scrapped tankers, cant bargains with the right value.” bulkers and containers removed over the same period.

With the presence of such players in the market hopes for a bout of consolidation in the space look to be forlorn.

AGE REQUIREMENTS AND

CABOTAGE REGULATIONS

LESS ATTRACTIVE TO RECYCLERS

The fundamentals behind the lack of OSV scrapping are

Yet another reason underpinning the lack of recycling activ- not going to change. The vessels will remain relatively unat- january/february 2021 OFFSHORE ENGINEER 15