UK broker Clarksons’ index of major vessel rates has hit its highest point this year, thanks partly to a booming offshore oil and gas sector.
The ClarkSea index rose 7% week on week to $27,298 per day, up 36% on the 10-year average.
Red Sea disruption has boosted tanker rates, while VLGCs are benefiting from arbitrage opportunities from the US into Asia.
But managing director Stephen Gordon focused on offshore strength.
Clarksons’ offshore index of vessel and rig rates has reached 112 points.
“The 2008 peak of 114 is now in sight,” the boss said.
“Sentiment remains generally positive (recent scaling back of some Saudi investment aside), with increasing project investment expected to generate further incremental demand gains [which], alongside continued fleet supply constraints, points to a tight market balance.”
The offshore support vessel rate index is up 28% from 2023 to 188 points, only 11 behind 2008.
Rates are at record highs in some regions, the researcher said.
Ship supply struggling to keep pace
He noted firm underlying OSV demand, up 22% versus 2021, with ship supply struggling to expand in response.
Further rate gains are likely, he believes.
The effect of a long period of ship removal and fleet rebalancing in the recently ended downturn is still being felt.
But improved markets are beginning to induce an uptick in newbuilding ordering, Gordon said.
He predicted deals with yards will remain at moderate levels, however, given high pricing, challenges securing finance, uncertainty surrounding fuel choice and long-term questions over residual asset value.
“Our projections suggest a year of further improvements,” he concluded.
