🌊 Offshore Shipping Markets in 2024: Recovery on the Horizon or More Headwinds Ahead?
- Davide Ramponi
- 19. Aug.
- 5 Min. Lesezeit
My name is Davide Ramponi, I’m 20 years old and currently training as a shipping agent in Hamburg. On my blog, I take you with me on my journey into the fascinating world of shipping. I share my knowledge, my experiences, and my progress toward becoming an expert in the field of Sale and Purchase – the trade with ships.
Today, we’re diving into one of the most cyclical and unpredictable corners of the maritime world: the offshore shipping market. This sector includes the vessels that support offshore oil and gas operations – from platform supply vessels (PSVs) and anchor handlers (AHTS) to construction support vessels (CSVs) and subsea units.
Offshore shipping has been on a wild ride over the past decade. After a brutal downturn triggered by the 2014 oil price collapse, many expected a rebound post-2020. But has that recovery materialised – or are we still waiting? ⚖️
Let’s explore what’s really happening in offshore shipping and whether optimism is finally justified. 👇
⚙️ Current Market Conditions: Is Recovery Underway?
The global offshore shipping market is showing signs of life – but the picture is far from uniform.
Where We Are Now (Q2 2024):
Utilisation is rising: Especially in PSVs and AHTS vessels
Day rates are climbing: Some regions near pre-2014 highs
Idle fleet shrinking: More vessels are being reactivated from layup
🟢 Positive indicators:
North Sea spot market heating up
West Africa and Brazil ramping up deepwater activity
Subsea demand driven by wind farm installations and decommissioning projects
🔴 Caution flags:
Asia Pacific remains soft
Some asset classes (e.g. older AHTS) still struggle to find work
Operating costs are up, and crewing remains tight
Bottom line:
It’s not a uniform recovery – but the tide is turning in many segments.
🛢️ Oil & Gas Exploration: The Fundamental Driver
You can’t talk about offshore shipping without talking about oil and gas exploration. Offshore vessel demand is tightly linked to upstream energy investment.
Global E&P Trends in 2024:
Capex is increasing: Global upstream investment is expected to exceed $580 billion this year
Deepwater is back: Brazil, Guyana, and West Africa are leading new projects
Shallow water remains steady, particularly in MENA and Southeast Asia
U.S. Gulf of Mexico: Stable but overshadowed by shale
💬 Insight:
According to Rystad Energy, offshore oil now competes favorably with shale in terms of breakeven costs – and operators are rebalancing portfolios accordingly.
🏗️ LNG developments (e.g., in Mozambique) and offshore carbon storage pilot projects are also supporting demand for specialised tonnage like subsea support and construction vessels.
⚖️ Supply vs Demand: Still a Balancing Act
After nearly a decade of oversupply, the offshore vessel market is finally beginning to re-balance.
Fleet Snapshot (2024):
🌐 Active OSV fleet: ~3,500 vessels globally
⚓ Lay-up numbers declining: Many PSVs/AHTS are being reactivated
🚢 Newbuild activity remains muted: Orderbook is historically low
Key Supply Factors:
⛔ Very few new orders – uncertainty around long-term demand and high build costs
🔄 Reactivation trend – but not all laid-up vessels are in good condition
🧯 Scrapping rising, especially for non-compliant, ageing tonnage
📌 Noteworthy:
Tier 1 operators are investing in hybrid retrofits and battery packs for PSVs – suggesting a focus on future-readiness rather than fleet expansion.
🧠 Result:
Supply discipline is improving, and that’s key for market recovery.
📊 Strategic Moves by Key Offshore Players
Major players in the offshore shipping space are adopting diverse strategies to adapt to changing market dynamics.
1. Mergers & Consolidation
Tidewater acquired Swire Pacific Offshore (SPO) in 2022
Solstad Offshore continues to consolidate Norwegian players
Smaller firms are being absorbed or exiting unprofitable markets
🎯 Goal:
Build scale, reduce overhead, and gain pricing power
2. Green Upgrades & ESG Compliance
Eidesvik, Maersk Supply Service, and others investing in:
Hybrid propulsion 🔋
Shore power compatibility 🔌
Battery packs and future-fuel readiness ⚡
🌍 ESG is now a commercial differentiator, especially for contracts with oil majors and wind developers.
3. Diversification into Offshore Wind
Operators are entering new verticals:
Walk-to-work vessels for wind maintenance
Cable-laying and survey ships for offshore grid development
Floating wind farm support (emerging niche with growth potential)
💡 Strategic tip:
Offshore wind requires different capabilities – crew transfer, DP systems, and accommodation – making it an attractive but technically demanding shift.
💸 Charter Rates: A Closer Look
Rates are rebounding – but how strong is the trend?
PSV Day Rates (North Sea, Q2 2024):
Spot market: $20,000–$35,000/day
Term contracts: $18,000–$28,000/day
AHTS Day Rates:
Spot: $25,000–$40,000/day
Larger (>18,000 bhp): up to $50,000/day in tight regions
Subsea & Construction Vessels:
DP2 CSVs: $40,000–$70,000/day
Saturation diving support: >$80,000/day for premium units
💬 Observation:
Shortage of high-spec, modern vessels is pushing up premium rates faster than average day rates.
📈 Outlook:
If oil prices remain stable and offshore investment holds, we may see multi-year chartering strategies return – with locked-in pricing through 2026 and beyond.
🔮 Market Outlook: What’s Ahead?
Is the offshore recovery sustainable – or just another peak before a fall?
Bullish Case (Recovery Continues):
Oil companies commit to multi-year offshore projects
Wind farm support demand grows significantly
Fleet remains constrained due to low newbuilding
ESG upgrades further segment the market in favor of modern tonnage
Rates stay elevated through 2026+
Bearish Case (False Dawn):
Global economic slowdown dampens oil demand
Financing for new offshore fields tightens
Wind sector delays due to permitting, inflation, or grid issues
Reactivated supply floods the market too quickly
Rates stagnate or fall by late 2025
🔍 Most analysts lean toward a moderate recovery, driven by:
Fleet discipline
Regional E&P strength
Offshore wind crossover
Technological innovation
🧭 Strategic Opportunities: Where to Focus
Where should owners, investors, and brokers look for upside?
1. Modern PSVs & AHTS with Hybrid Upgrades
Green specs command premium rates
Easier to win long-term contracts with oil majors
Financing and chartering incentives for low-emission vessels
2. Subsea & Construction Vessels
Tight supply + growing demand for decommissioning and cable-laying
Diversified income streams (oil & wind)
High barrier to entry protects margins
3. M&A and Consolidation Plays
Smaller owners can scale via partnerships
Fleet consolidation = stronger pricing power
Good timing before rates plateau
4. Niche Offshore Wind Services
Opportunities in crew transfer, survey, and support services
Lower competition than traditional OSV segments
Long-term government-backed contracts
🔑 Success Tip:
Combine operational excellence with ESG compliance. Clients increasingly prioritize sustainability, and vessels with environmental credentials have the edge.
✅ Conclusion: Recovery with Caveats
The offshore shipping market is showing real signs of recovery – but it’s not automatic or uniform.
Let’s recap:
⚙️ Utilization and rates are improving, especially in PSVs and subsea vessels
🛢️ Offshore oil & gas exploration is rising again, driven by cost-competitiveness
⚖️ Supply discipline is back – newbuilds are scarce, and old tonnage is exiting
♻️ ESG and hybrid upgrades are creating a two-tier market
💼 Strategic opportunities exist for those willing to modernize, consolidate, or diversify
👇 What’s your take on the offshore market in 2024? Are we entering a true recovery – or is caution still warranted?
💬 Share your thoughts in the comments — I look forward to the exchange!
