The recovering platform supply vessel (PSV) market in Europe has almost come full circle as the number of ships in lay-up dwindles ever further.
Rates have risen and charterers now face a tight summer spot market, with no prospect of new vessels entering the sector.
Norwegian broker Westshore tallies just five PSVs left stacked, all in Norway.
This is all a far cry from the dark days of 2017, when there were nearly 120 ships out of the market in ports, according to compatriot broker Seabrokers.
While some of that reduction materialised as a result of PSVs being reactivated back into the local market, a long list of vessels have been retired or sold either for conversion, scrap or use in other regions.
And the broker said it will be “somewhat concerning” for charterers to see how tight the North Sea spot market is this summer.
They will also be worried about how high PSV rates have progressed already, with very little scope left for any notable increase to the supply side via the reactivation of idle tonnage.
PSV availability on the spot market was in extremely short supply in May.
“There were never more than a handful of PSVs prompt available across the whole region, and in many cases some of the prompt vessels had forward commitments lined up which meant they were only available for limited periods,” Seabrokers said.
“Understandably, rates remained firmly in owners’ favour as a result,” the company added.
June levels go higher
On the UK side, the majority of spot fixtures carried rates of more than $17,500 ($22,000) in May, while in Norway most charterers had to pay at least NOK 220,000 ($23,300).
This is in turn way short of current levels, with Delta Logistics’ 4,200-dwt Seacor Nile (built 2019) picking up £33,000 per day from Petrofac for a week of supply duties earlier in June.
Of the five ships left in lay-up, two are owned by Solstad Offshore, another controlled by Rem Offshore, plus a DOF Group unit and one owned by Garware Offshore Services.
Two of the ships have been laid up since 2015, with the others removed from the market in 2017 and 2020.
All were built between 2003 and 2008, suggesting little future in a market looking for modern vessels.
Island Offshore’s 3,800-dwt Island Duchess (built 2013) is the latest to move back into service in the second half of May.
Still 12 anchor-handlers out of action
A total of 12 anchor-handling tug supply (AHTS) ships remain in lay-up, and no multipurpose offshore ships.
Westshore logs 151 offshore support vessels (OSVs) of all kinds having left lay-up over the last seven years.
Two AHTS vessels were reactivated at the end of May.
PSV utilisation in the North Sea stood at 87% on Wednesday.
There is one prompt ship free in Norway, but the unit has a job lined up on 17 June.
A couple of PSVs are free up to 15 June and 1 July respectively on the UK side.
