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The waiting game: speculative CSV newbuilds look for long-term charters
Record-level backlogs at Tier 1 EPC contractors have not yet translated into long-term charters for subsea construction vessels
Subsea backlogs for Tier 1 EPC contractors have reached near-record levels, tipping US$50Bn. But subsea contractors appear to be waiting for an influx of newbuilds before pulling the trigger on long-term charters, according to an analysis by a leading shipbroker.
Given the record level backlogs, Fearnley Offshore Supply, senior market analyst, Jesper Skjong, said the “lack of long-term charters [was] even more puzzling.”
But the answer may be in plain sight, suggested Mr Skjong’s analysis in his latest offshore supply report. “One might suspect that they are biding their time, and with good cause as the supply side is rapidly expanding. From 2026 to 2028, more than 25 subsea construction support newbuilds are expected to enter the market. Furthermore, excluding a very limited number of which, almost all of these were ordered on a speculative basis and remain without firm contractual commitments,” he concluded.
Mr Skjong pointed out that these newbuilds fall into in the 150- to 250-tonne offshore crane category, with deliveries starting from H2 2026 and extending into 2028, “with 2027 potentially setting a new record for the highest number of CSVs delivered in any one year.”
Most of these newbuilds have not secured a long-term charter.
“Almost all of these were ordered on a speculative basis”
“As of today, the vast majority of units are also ordered on a speculative basis and have no firm contract commitments in hand,” said the shipbroker in the Fearnley Offshore Support report.
“Given the softening in demand we experienced in recent months, combined with the availability of newbuilds, it is likely that new fixing levels will stabilise and potentially even soften in some cases”, Fearnley concluded.
Middle East JV
One new entrant into the subsea market will be a new Middle East integrated subsea solutions joint venture between DeepOcean and Saudi Arabia-based Jana Marine Services. The two parties inked plans for a five-year charter for a hybrid-battery dive support vessel (DSV) under construction in China.
The JV, JADE Subsea Services, will sign a charter with Jana Marine for a newbuild DP2-class hybrid DSV capable of performing subsea construction, inspection, maintenance and repair and dive support activities.
“DEME characterised the vessel as a sizable investment”
“Jana Marine brings a newbuild vessel, marine expertise and deep local knowledge to the partnership,” said DeepOcean chief executive, Øyvind Mikaelsen.
The DP2-class newbuild, Jana 201, will have an overall length of 98 m, equipped with hybrid power supplied by two 800-kW batteries which can be used on a standalone basis, or in conjunction with seven1800-kW gensets. The vessel will feature a 12-man Drass-supplied saturation diving system, along with two air diving spreads and light work class ROV. It will also be outfitted with a 100-tonne crane and accommodation for up to 120.
The vessel is built to meet the specifications of oil majors in the Arabian Gulf, with delivery in Q3 2026.
DEME orders OCV
To strengthen its subsea cable installation capacity, DEME has ordered a SALT 310 design, 123-m offshore construction vessel (OCV) with PaxOcean at its Zhoushan shipyard in China.
Announced in September, the DP2-class OCV will have a 150-tonne active heave-compensated offshore crane, a hangar for two Work Class ROVs, a hybrid 1,000-kWh battery system, and a methanol-ready propulsion design for future fuel flexibility. Below deck, the vessel is configured to accommodate two 2,500-tonne cable carousels, enabling swift deployment and seamless transitions between trenching, burial, and cable-laying operations. The vessel can accommodate up to 123.
DEME said the vessel will be able to launch an ROV trencher to execute subsea cable trenching and burial operations, supporting its cable installation fleet. DEME characterised the vessel as a sizable investment, of between US$50M and US$150M, with delivery set for 2028.
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