November’s platform supply vessel and anchor handler spot market was characterised by an increase in rates but a big drop in activity according to Norwegian-based market analyst Westshore Shipbrokers.
Just 11 rig moves were carried out in the North Sea throughout November, half as much as the month previously and the lowest figure since Westshore started keeping track. The number of drilling rigs on contract in the North Sea has declined significantly since the end of last year
Drilling contractors have had to slash rates and lay up rigs in order to secure work.
The Norway-based firm said this resulted in just 38 AHTS (anchor handler tug supply) fixtures, signifying a big drop in the amount of work available for anchor handlers on the spot market.
Despite this, the significant level of layups has kept the market in balance to a degree, meaning owners were able to pick up more for their vessels this month than there were the previous month.
For PSV’s it had been a fairly typical month.
Analyst Inger-Louise Molver said: “It’s worth noting that there has been on average an extra 10 supply fixtures each month compared to last year.
“This is as a result of the reduction in vessels working on term contracts – so when operators need a cargo run, they have to turn to the spot market when they previously might have relied on a vessel they had on term charter.
“Of course, all those would be term-vessels are now fighting for work on the spot-market, meaning rates are down consistently month on month from last year,” she added.
Molver said PSV spot utilisation was at its worst just before the summer and has picked up only slightly since then.
“There is still a lot of available vessels on the spot market but charterers have come to expect rock bottom rates and owners have come to expect to have to bid low in order to secure any work at all.”
Westshore said the 2016 market would be tough, but the rate of decline should slow. Several large projects were due to begin in 2017 that would boost activity.
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