Despite projected demand recovery post-2020, the global offshore support vessel (OSV) market continues to face a utilization challenge, a joint research by Braemar ACM Shipbroking (Braemar) and Westwood Global Energy Group has shown.
According to the press statement released Wednesday, over the course of 2020, estimates for total utilization 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 utilization (excluding stacked vessels) estimated at 73% in 1Q2021, owners and operators who wish to remain competitive must consider future tactics for fleet rationalization, factoring in aging fleets alongside the financial and environmental costs associated with scrapping," the two firms said in their research.
The insights were delivered as part of a new partnership between Braemar and Westwood as the two firms launch the first edition of what will be a quarterly Global Offshore Navigator report.