OSJ Asia: owners discuss market, crewing challenges

Offshore support vessel (OSV) owners face challenges retaining, recruiting and training crews, securing finance, introducing new propulsion and energy technologies, and from charterers trying to repress lease rate hikes.

Market conditions are good at present for owners, with high demand and fleet utilisation, rising charter rates and interest from energy companies in all types of vessels.

However, the shortage of available vessels means charterers are asking owners to order new ships and keep a cap on rates to make them more sustainable.

Owners at Riviera’s Offshore Support Journal Conference, Asia 2024, held 17-18 September in Singapore, expressed their concerns and described their challenges during an industry leaders panel. 

Tidewater Asia Pacific managing director Joanne Ang said key challenges include retaining and attracting talent, and building industry knowledge.

"It is difficult to attract new talent. We need our people to maintain our vessels up to standard and continue operating," she said, adding the OSV sector needs to attract the next generation of seafarers.

Ms Ang also highlighted the need for charter rates "to be sustainable for owners and charterers" as if they go too high, energy companies could defer or delay projects, thus eroding future demand.

"If rates are too high, people will speculate on newbuilds that are not needed in the market - everyone needs to be sustainable and profitable," she added. "There is money to be made but it may not be sustainable for all."

Britoil Offshore Services head of SBU in Asia Pacific, Ernest Loh, agreed recruiting seafarers and retaining their experience are key challenges.

"We must ensure crew know how to take good care and maintain vessels," he said. "A lot of senior seafarers have left, retired, and it is difficult to recruit younger people."

He proposed dedicated cadet training for working on OSVs and introducing software and artificial intelligence (AI)-based tools to attract younger talent, and "perhaps calling them offshore energy vessels" instead of oil and gas support vessels. "We do our best to retain and train crew. Our cadet programmes are important."

Mr Loh also highlighted the importance of securing finance for fleet renewal, retrofits and digitalisation programmes, such as real-time fuel monitoring. "It is extremely important to set aside money for investments, for the future requirements," he added.