North Sea spot market swings in charterers’ favour

Average spot rates in the UK North Sea for platform supply vessels (PSVs) dropped like a rock in July, with larger units falling about 78% from June – more than £18,000 (US$24,191).

Rates for PSVs with clear deck areas of 900 m² or more had been looking up the previous two months, hitting a remarkable £23,131 in June. But the average day rate in July plummeted to £4,974 in July, with the market “swinging completely in charterers’ favour”, said Seabrokers.

The broker reported significant drops in average spot day rates and utilisation levels for both PSVs and anchor handling tug supply (AHTS) vessels for July, noting these were also significantly lower than the same month a year earlier.

“Average spot rates in both categories were circa 65-75% lower than they were in July 2024. At the lower end of the scale, we have seen multiple PSVs sent out on cargo runs with day rates of just £3,000 (US$3,945). On the AHTS side, there have been spot fixtures throughout the region with rates as low as €12,000, £11,000 and Nrk110,000 (US$10,620-14,465)” said Seabrokers.

Average utilisation rates for July were dismal, with medium PSVs (<900 m²) at 39%, large PSVs (>900 m²) at 54%, medium AHTSs (<22,000 bhp) at 23% and large AHTSs (>22,000 bhp) at 37%.

To the relief of AHTS owners, some of the North Sea’s oversupply will be absorbed by other regions, with “several vessels departing for contracts” over the next six months, said the broker. “PSV owners do not have the same reassurance. If these trading conditions persist, it will not be long before PSV owners start to consider layup options” said Seabrokers.

One PSV that was extended by Shell UK in the North Sea was 2010-built Songa Commander, according to the broker. The VS 485 CD design vessel is managed by Remøy Shipping.