Insights delivered as part of a new collaboration between Braemar and Westwood as they launch their quarterly Global Offshore Navigator report
Aberdeen, UK, 2nd June 2021: Despite projected demand recovery post-2020, the global offshore support vessel (OSV) market continues to face a utilisation challenge – this is according to collaborative research from Braemar ACM Shipbroking (Braemar), one of the world’s largest chartering, derivative and S&P shipbroking companies and Westwood Global Energy Group (Westwood), the specialist energy market research and consultancy firm.
Over the course of 2020, estimates for total utilisation for the global OSV market fell from 55% in 1Q2020 to a low of 49% in 3Q2020 following a sharp decline in rig activity, FID cancellations/deferments and significant logistical challenges posed by the global pandemic. In efforts to reduce operating costs, vessel owners have been quick to stack idle fleets, with global lay-ups accounting for almost 33% of total capacity. With effective utilisation (excluding stacked vessels) estimated at 73% in 1Q2021, owners and operators who wish to remain competitive must consider future tactics for fleet rationalisation, factoring in ageing fleets alongside the financial and environmental costs associated with scrapping.
Source: Global Offshore Navigator Report, Westwood, Braemar ACM Shipbroking
Join Westwood and Braemar for a unique and detailed webinar on the global outlook for OSVs, register here.
Delivered as part of a market first collaboration, the Global Offshore Navigator report means industry professionals can now benefit from the marriage of brokerage firm market insights alongside detailed forecasting intelligence. Through this enhanced understanding of the regions, customers and asset types that will drive future investment, investors and fleet managers alike will have unprecedented clarity on growth opportunities such as renewables and strategic business planning decisions.
“As the market looks to refortify in the post-pandemic era, this partnership couldn’t have arrived at a better time” said Mark Chesterfield, Managing Director, Braemar ACM Offshore.
Mark continues, “When we look at the utilisation challenge, for example, the combination of Braemar’s day-to-day working knowledge with Westwood’s forward-looking insight enables us to present the real-world challenge and follow this up with actionable solutions. In this way, we are breaking the vacuum pattern of working that has historically limited the growth of offshore operations and supporting the wider industry with its recovery.”
Thom Payne, Head of Offshore Energy Services, Westwood said: “The opportunity to collaborate with a renowned brokerage firm such as Braemar is particularly exciting for both Westwood and the offshore industry. Having access to this fleet intelligence powered by Braemar’s superior data and in-house experts has enabled us to enrich our forecasts through additional stress-testing. This heightened accuracy across predicted rates, utilisation and demand allows us to present a robust, actionable route for industry decision makers.”
Thom continues: “Whether you’re involved in investor relations, internal strategy or fleet manager operations, this partnership and the subsequent Global Offshore Navigator report raises the bar when it comes to combining the big picture with the on-the-ground detail, and we look forward to the roll out and future editions.”
The Global Offshore Navigator report features three-five-year activity forecasts, intuitive charts and visuals to support internal presentations, external marketing and investor relations material.
About Westwood Global Energy Group
Every day, organisations throughout the onshore and offshore upstream energy value chain ask strategic, technical and commercial questions and turn to Westwood Global Energy Group for the answers. As trusted advisors to companies in key sectors, Westwood Global Energy Group chooses to focus on areas of the industry traditionally underserved by other players.
The Energy Transition means that businesses are facing both new opportunities and risks in how they operate. We are committed to helping the energy industry navigate the transition successfully, by leveraging our extensive track record in providing actionable insight and advice that businesses, industry bodies and investors have relied upon time and time again. From the depth of our data to the insight from our industry experts, our commercial advisory to our quantitative techniques and databases – we insist on excellence in everything we do.
Westwood Global Energy Group is headquartered in Aberdeen and has offices in London, Houston and Singapore.
About Braemar ACM Shipbroking
Braemar ACM Shipbroking is one of the largest chartering, derivative and S&P shipbroking companies in the world. Braemar ACM Shipbroking was formed following the merger of Braemar Shipping Services Plc and ACM Shipping Group Plc in 2014.
With offices in 13 key shipping geographies worldwide, covering chartering, S&P, operations and market research across all the major commercial shipping sectors, Braemar ACM can deliver a comprehensive shipbroking service in any location and at any time.
Laura Stephenson, Aspectus