Embrace innovation for prolonged sustainability and decarbonisation

Demand for OSVs and harbour tugs is expected to continue to grow as overall energy demand rises, driven by population growth and rising living standards, especially in countries not in the Organisation for Economic Co-operation and Development.

Mr Helweg said the energy mix and production patterns will shift towards the Middle East, Africa, South America and Asia, and away from Europe.

He thinks the OSV sector should show co-ordinated capacity discipline to avoid another oversupply situation, as the sector is benefitting from an upcycle.

This is after several years in a downcycle that was caused by falling demand and a glut of available OSVs, many of which were laid up for months or years, between 2015 and 2022.

During the prolonged lull in OSV demand, utilisation and day rates were low and owners piled up debt.

Many sold vessels and assets or merged with rival owners, or provided more equity to lenders to reduce debt and rebalance their finances.

This resulted in fleets of distressed assets run by banks or by owners seeking sales, with the assets being acquired at low prices during the downturn.

Mr Helweg expects more mergers and acquisitions to occur in 2024, as some companies continue seeking distressed assets to purchase and others are looking to build their fleets. But the days of cheap distressed asset sales are likely to be over.

Additional reporting: Edwin Lampert

Many of these industry trends and technologies will be discussed at Riviera Maritime Media’s Offshore Support Journal Conference, Awards and Exhibition 2024, to be held in London, 7-8 February 2024, click here to purchase tickets and attend this industry-leading event

The 27th International Tug & Salvage Convention, Exhibition & Awards will be held in association with Caterpillar in Dubai, UAE, 21-23 May 2024. Use this link for more details of this event and the associated social and networking opportunities; and this link to book your ticket for the exhibition, social gatherings and awards night.