High prices slow S&P activity to 50% of 2023 levels

Secondhand OSV sales have slowed considerably this year, with S&P transactions to date at 50% of the value of the activity during the same period in 2023, according to data from a leading ship valuation firm.

As of the end of August, UK-based VesselsValue (VV) reported secondhand sales of OSVs totaled US$969M — down from US$1,903M in 2023, and US$1,281M in 2022. Ninety OSVs have exchanged hands in 2024, down from 228 in 2023 and 261 in 2022. But OSV owners are striking better deals for their secondhand tonnage, as vessel transactions have averaged US$10.77M in 2024, up close to 23% from US$8.35M in 2023.

Fewer OSVs are headed to the breakers this year, too, with only nine demolition sales recorded by VV in 2024, down from 13 in 2023 and 28 in 2022.

This is despite 1,128 OSVs and offshore construction vessels (OCVs) in lay up in the Gulf of Mexico, the Middle East, southeast Asia, and West Africa. By contrast, based on AIS data, VV reports a mere 40 OSVs and OCVs are in lay up in northwest Europe and 66 in eastern South America.

While increased asset prices have led to the softening sales in 2024, shipbroker Fearnleys said: “Many secondhand transactions still offer attractive yields, with the rising charter rates in the market leading to certain players remaining active in the space.”

One of those active buyers has been UAE-based ADNOC Logistics & Services (ADNOC L&S). It closed on the anchor-handling tug supply (AHTS) vessel POSH Radiant from POSH (Singapore) Ltd.

Built by Paxocean Engineering in 2014, the AHTS has been renamed ADNOC A09. The 70.3-m, 108-tonne bollard pull vessel has been reflagged to the UAE from Singapore.

“Vessel transactions have averaged US$10.77M, up close to 23%”

VV reported the sales closed on 13 June for an undisclosed price. It estimated the market value at US$9.47M as of early August.

Seabrokers, which reported the sale, said the AHTS is a sister vessel to ADNOC A08 (ex Winposh Ready) acquired by ADNOC L&S this year.

ADNOC L&S also scooped up two five-year-old 6,600-bhp AHTS vessels, Yong Ye 67 and Yong Ye 63, from China’s Fujian Southeast Shipyard for an undisclosed price.

The Chinese shipbuilder was also sold the 2023-built platform supply vessel (PSV) Enav Jacarar to Brazil’s Posidonia Shipping.

Fearnleys said a consortium led by Aberdeen-based Fletcher Shipping took delivery of 2008-built PSV FS Aries (ex GMS Legend), following its acquisition by Norwegian project finance buyers. The PSV had been trading in the Middle East in recent years but is now expected to return to North Sea trading, said the shipbroker.

Finally, the 2007-built, X-Bow PSV Bourbon Monsoon was sold by Bourbon to a consortium led by Norway’s Uthalden Maritime, majority owned by Harald Moraeus-Hanssen’s private investment company, Uthalden AS. Renamed MH Monsoon, the Ulstein PX 105 design PSV is trading on the North Sea spot.

“We can confirm that the PSV segment still offers high interest from financial buyers, as the supply fundamentals remain attractive with limited quality tonnage entering the market before 2026,” said Fearnleys.