The dark days of rock-bottom rates and vessel stacking are back in the North Sea platform supply vessel (PSV) sector due to the coronavirus pandemic.
Shipowners are currently deciding what to do with unwanted ships as the list of open tonnage grows in ports.
Broker Westshore reported the 3,200-dwt FS Balmoral (built 2008) fixed by DEME at just £3,500 ($4,300) per day for supply duties, down from £10,000 two weeks ago.
Utilisation is around 50% as the fall in the oil price also dents activity.
Seabrokers said: "The unprecedented impact of the coronavirus has already started to have a dramatic effect on the spot PSV market in the North Sea.
"With oil companies striving to reduce costs and trying to minimise the risk of their employees being exposed to Covid-19, there has been an immediate slowdown in PSV demand on the spot market."
There have also been substantial operational difficulties arising, with crew changes becoming nigh-on impossible to complete in some cases.
More and more vessels started to return to port through March, following the completion of spot charters.
There were no fewer than 30 PSVs available on a daily basis through the final week of the month.
Stacking starts again
Six of 21 are now charter-free in Norway, while 19 of 43 are waiting for work in the UK.
A total of 36 vessels remain in layup in North Sea ports.
The trend over the last year has been for reactivation of ships backed by term work or for conversion for operations in other sectors.
But Westshore lists Sverre Farstad's 4,100-dwt Farland (built 2015) as being laid up on 31 March in Alesund, Norway, and Hoyland Offshore's 4,600-dwt Sartor (built 1994) stacked in Sagvag on 2 April.
Sartor was formerly owned by India's bankrupt GOL Offshore.
It was brought out of layup in 2018 after having been stacked for 688 days.
No surprise
"It was unsurprising to see fixture rates on the decline, with some owners despairing at the reality of having to fix away their vessels at rates of less than £4,000 again. We all thought those days were behind us," Seabrokers added.
"Some owners are assessing whether to reduce their spot market exposure by laying up tonnage," it said.
"One thing is for sure: it would take a brave owner to commit to the costs of a five-year survey for any vessel whose class certificate is due to expire without a contract in place."
The Norwegian Shipowners Association has said the current crisis is likely to be worse than the financial crash of 2008 and the offshore slump of 2015 combined.
Norwegian owners Siem Offshore and Solstad Offshore have concluded refinancing deals in the last few days, while Dof Group is talking to lenders about emergency loans due to liquidity shortages.
