AHTS & PSV Market Outlook

The fundamental drivers in the offshore market have changed significantly compared to last year. The war in Ukraine, the gap in supply and demand experienced all around the world and a general slow down in the global economy in 2022 have left us in a state of uncertainty.

However, the offshore market stays bullish as:

-?????????Oil prices remain at a high level

-?????????Drilling activity has increased, driving up vessel demand

Based on the changes of the market fundamentals and announcements from major oil companies, we foresee a decrease of 2% per year in OSV supply while OSV demand is expected to rise by 3% per year.

Maersk Broker Market Situational Observations

Demand

• Fundamental drivers point to increased upstream activity and vessel demand
• Political events (war) push strategic drive for supply security, adding to upstream activity increase
• Offshore wind market will face increasing competition from upstream markets, where consequential cost of non-accessibility of right tonnage is higher
• Will oil companies maintain charter restrictions developed in past "buyers market" (age, non-lay up vessels, etc.) as they see charter rates improve?

Supply

• With few exceptions, owners have completed financial restructuring
• Most strategic and distressed sales efforts have been more or less completed
• Assets for sale are taken from market for reactivation
• Buyers are now chasing behind asset price improvement
• Will owners this time manage to balance reactivation to support market balance?
• Will demolition activity reduce, pause or end as market balance improves?

The above is just a small deep dive into some of the many insights contained in our quarterly report on the Offshore Market.

At Maersk Broker we have more than a century of experience within shipbroking as well as a team of specialist providing actionable insights and bespoke reports for financial institutions and stakeholders within the maritime industry.

Should you be interested in optimizing your decisions please reach out to:

Finn Essendrop, Senior Director – Offshore Newbuilding / S&P,

[email protected]

+45 33 44 15 60