Clarksons Research expects more gains after it calculated offshore support vessel rates have jumped 20% so far this year.
The continued progress in the sector has pushed the Clarksons Offshore Index to levels last seen in 2015, said Stephen Gordon, managing director of the unit at shipbroking giant Clarksons.
Demand for ships is now 21% higher than the low point in the first half of 2020, having seen further hikes since March.
“This has prompted term rate improvement in most regions,” Gordon added. “Our projections suggest continued progress in utilisation and day rates.”
Reduced supply of anchor-handling tug supply ships in the North Sea sent rates to record levels above $230,000 per day in July.
Rig markets have also made good progress, with jack-up utilisation up by eight points year-on-year to 86%, while floater use gained 11 points to hit 84%.
Clarksons’ assessment of US Gulf deepwater floater rates has risen 57% from 2021 to between $390,000 and $440,000 per day.
The subsea support sector has also improved strongly this year with mid-year utilisation at 82%, the best since the 2014 downturn, Gordon said.
Rate assessments have made significant gains, he added.
The combined Clarksons rate index for rigs, OSVs and subsea units has risen 27% since the start of 2022.
Small orderbook
“Macroeconomic concerns aside, sentiment is positive that strength will continue, supported by improved activity and a supply-side constrained by a small newbuild orderbook and removals over the last decade,” Gordon explained.
“Offshore wind has continued its rapid growth phase, with robust capacity growth, high peak-season utilisation in Europe and a continued wave of next-generation newbuilds.”
Energy pricing has also been supportive of offshore activity this year, with a barrel costing above $100 for most of the time since the Ukraine invasion in February.
Meanwhile, natural gas prices for the European winter have again reached records as Russia has cut off pipeline gas to various countries, Gordon noted.
Security of energy supply concerns are stimulating accelerated investment in both offshore oil and gas and offshore wind, he believes.
Capital commitments for new oil and gas project final investment decisions (FIDs) totalled $50bn from January to August.
The figure for offshore wind is $9bn.
Clarksons is projecting full-year investment of $91bn for oil and gas and $29bn for offshore wind.
