Page 11: of Offshore Engineer Magazine (Nov/Dec 2023)

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OSVs OUTLOOK FOR 2024 s 2023 is drawing to a close we would once signifcant improvement to the “foor” for these assets, can again invite the readers of Offshore Engineer certainly be said to have materialized. In the North Sea

Magazine to gaze into our crystal ball to see spot market for example, we note some very interesting

A what 2024 might have in store for the offshore statistics to this effect. support vessel industry. Before diving straight into our for- On the Norwegian Continental Shelf, 2023 year-to- ward-looking sentiments however, it is important to ad- date we have recorded just shy of 200 fxtures with the dress some of the main trends in the year that past as these lowest level fxed at NOK 175,000 per day, whereas 2022 lay the foundation for the year to come. running to 26th November had 209 fxtures reported –

Continuing the market development from the year but around 50 of these were fxed at lower than NOK before, 2023 very much advanced the ongoing recovery 175,000 per day, with the lowest recorded fxture at just for offshore support vessels further. When analyzing key NOK 75,000 per day! metrics in our industry such as reported dayrates, average The spot market for AHTS working out of the UK saw vessel utilization, and vessel valuations, this becomes abun- an even sounder development with 285 reported fxtures dantly clear as we fnd signifcant improvement in close to so far this year which compares to around 230 at the same all regions and vessel segments. time last year. The lowest recorded dayrates in this time

That having been said however, the market has not re- period went from just GBP 8,000 last year to GBP 14,500 covered to the same degree everywhere, and different ves- per day so far this year. Moreover, 2023 thus far has seen sel segments have certainly seen their respective parameters the number of fxtures concluded at less than GBP 20,000 develop in different strokes. Prime examples of this are the almost cut in half compared to 2022 at the same time.

platform supply- and subsea construction markets, which So, while the North Sea spot market this year did not saw tremendous improvements throughout the year. The reach 2022’s peak dayrate levels echoing past glories for developments seen in the anchor handling- and tug supply AHTS, it has, by a large margin, raised the bottom levels vessel market, however, were far more muted, especially for these vessels.

when compared to the two former. Nonetheless there is still something borderline confusing

For PSVs specifcally, we have recorded an almost 30% to note - some of the latest term fxtures fetched dayrates increase in dayrates so far this year, which comes on top around USD 40,000 per day for both supply segments. Es- of the 55% increase throughout 2022. Furthermore, 2023 pecially so when we know how much higher the dayrates has also seen the total number of large units on contract for AHTS’ were last time the market activity picked up as reach new all-time highs, so it is diffcult to understate the we have seen since the trough. And that allows us to pivot market recovery herein. to next year – where the anchor handlers might very well

In the subsea construction segments, we have seen both catch up to other segments.

dayrates and contract durations increase. Not only are First off, the present state of the AHTS feet is in the dayrates for several asset classes back to 2014-levels, 2023 best position we have recorded since the start of the down- have also brough back multi-year frm contracts for the turn. Not only is the number of working units globally frst time in many years. back to 2016-levels but more importantly we now have a

As mentioned, while improved, the AHTS segment did total feet count last seen in 2012. Thus, as the demand for not muster the same kind of positive development seen these units continues to improve the market balance will elsewhere. In comparison to the above mentioned dayrate only tighten even further. developments, average dayrates for AHTS have only seen But those are overall fgures, and the picture becomes around a 10% increase so far this year. even more interesting when we factor in the age and con-

However, and especially in light of historical references, dition of the feet in order to determine a more practical, we see relatively weak market development as a potential or rather more commercial, feet count. In fact, more than identifer for opportunities rather than dismay. The AHTS 15% of the total feet is still laid up despite the market im- vessel segment, which has lagged the above-mentioned provement. And while some of these assets will undoubt- two asset classes considerably, could, perhaps just as easily, edly return to the market, around half of them are at least be said to have the largest outstanding potential in its yet 25 years old, and around 70% have been cold stacked for to be realized market recovery. at least fve years.

Furthermore, the foundation for a stronger market, a Taking into account that more than half of the still cold- november/december 2023 OFFSHORE ENGINEER 11