The second-hand market for offshore vessels: opportunities, challenges and tips for getting started

Davide Ramponi
22. Jan.
3 Min. Lesezeit

Aktualisiert: 29. Mai

My name is Davide Ramponi, I'm 20 years old and I'm currently training to become a shipping agent in Hamburg. On my blog, I take you with me on my journey into the exciting world of shipping. I share my knowledge, my experiences and my progress on my way to becoming an expert in the field of Sale and Purchase - the trade in ships.

Illustration highlighting the second-hand offshore vessels market, featuring anchor handling tugs and offshore supply vessels. The backdrop includes offshore wind farms and oil rigs, emphasizing niche opportunities in retrofitting and market cycles. Icons surrounding the vessels represent the unique dynamics and potential of second-hand offshore vessel transactions in this specialized market.

While the second-hand market for cargo ships is widely recognised, the market for offshore vessels often remains a niche area, but one that offers exciting opportunities. Offshore vessels play a crucial role in industries such as oil and gas production or renewable energies. But why are they valued differently to cargo ships? What are the challenges and how can buyers and sellers benefit? In this article, I will give you an overview of the offshore shipping market, show you examples of successful transactions and share tips on how you can enter this niche market.

Overview of the offshore shipping market

The offshore vessel market comprises a variety of specialised vessel types designed for tasks in the offshore industry. Here are some of the most important vessel types:

Anchor handling tugs (AHTS):

These vessels are used for positioning drilling platforms and pulling heavy loads.

Offshore supply vessels (PSV):

They transport equipment, materials and personnel between land and offshore installations.

Installation vessels for wind farms:

These vessels are specifically designed for the construction and maintenance of offshore wind farms.

Research vessels:

Specialised offshore vessels are used for seismic surveys or environmental studies.

The market for offshore vessels is heavily dependent on the development of the oil and gas industry and renewable energies, which leads to fluctuations in supply and demand.

Why offshore vessels are often valued differently to cargo ships

The valuation of offshore vessels differs fundamentally from that of cargo vessels. Here are the main reasons:

Technical specialisation:

Offshore vessels are highly specialised and have complex systems such as dynamic positioning (DP) or crane systems. These technologies increase value, but also require specific maintenance and expertise.

Market cycles:

While cargo ships are often influenced by global trade flows, the value of offshore vessels depends heavily on projects in the oil and gas industry or in the renewable energy sector.

Operational flexibility:

Many offshore vessels can only be deployed for specific tasks, which can limit their market attractiveness.

Challenges and opportunities in the second-hand market

The second-hand market for offshore vessels is characterised by specific challenges, but also unique opportunities.

Challenges:

Fluctuating demand: demand for offshore vessels is volatile and highly dependent on projects in the oil and gas or wind farm industries.
High operating costs: Offshore vessels are technically demanding and require significant maintenance and operating costs.
Limited deployment options: Some vessel types are so specialised that they can only be used for certain projects.

Opportunities:

Niche market: buyers with the necessary expertise can benefit from favourable prices, especially during periods of low demand.
Growing markets: Offshore wind energy is a growing market, increasing the demand for installation vessels and supply vessels.
Increasing value through retrofitting: Investments in modernising or retrofitting an offshore vessel can significantly increase its market value.

Examples of profitable purchases and sales

A successful purchase or sale in the offshore market requires experience and timing. Here are two practical examples:

Profitable purchase:

A buyer acquired an older PSV vessel at a discounted price during a dip in demand in the oil industry. After being converted for use in the offshore wind sector, the vessel was sold on at a profit.

Successful sale:

A seller invested in retrofitting an anchor handling tug with modern DP technology. The ship realised a significantly higher market value as a result and was sold to a shipping company in Asia.

Tips for entering this niche market

Entering the second-hand market for offshore vessels can be rewarding, but requires a strategic approach. Here are some tips:

Market research:

Understand the specific requirements of the offshore market and identify growth sectors such as renewable energy.

Collaborate with experts:

Engage experienced brokers or surveyors to realistically assess the condition and value of a vessel.

Flexibility:

Considers the possibility of refitting vessels for new uses to take advantage of market changes.

Long-term planning:

Invests in vessels that are profitable in the long term and compatible with the latest environmental regulations and technologies.

Conclusion

The second-hand market for offshore vessels is an exciting niche that offers both challenges and significant opportunities. Buyers and sellers who understand the market cycles, have technical expertise and focus on long-term trends can be successful in this area.

I hope this article has given you an insight into the offshore shipping market and inspired you to explore this fascinating niche further. What experiences have you had in this market? Share your thoughts and questions in the comments - I look forward to the exchange!