Volatile North Sea AHTS rates show ‘Jekyll and Hyde’ behaviour

Globally, OSV demand remains strong, with Clarksons OSV Rate Index hitting 190 points at the end of March — 68% above the 10-year average. While a rising tide lifts all boats, it is not necessarily true when it comes to all OSVs in the North Sea.

While Brazil, the Middle East and southeast Asia OSV demand have shown steady improvements this year, “the North Sea market remains in a weaker position relative to mid-24 highs and is yet to pick up moving into the seasonally stronger summer period,” notes Clarksons.

The shipbroker says North Sea rates “have yet to see improvements in 2025, with PSV rates remaining flat for the fourth consecutive month, and still 22% below mid-‘24 highs.”

North Sea averages day rates for large PSVs (>900 m2) for March 2025 are pretty much the same as they were a year ago, according to data from Seabrokers. These vessels averaged day rates of GBP7,134 in March 2025, down from GBP7,182 or -0.67% y-o-y. Average utilisation rates for large PSVs have tumbled, too, from 73% in December 2024 to 56% in March 2025.

On the other hand, average utilisation rates for medium anchor-handling tug supply (AHTS) vessels climbed over that same four-month period, from 44% in December to 60% in March. But day rate performance is weaker than a year ago. As tracked by Seabrokers, these size vessels (<22,000 bhp) averaged rates of GBP33,856 in March 2025, down from GBP51,813, falling 34.66% from the same month one year ago.

Larger, more powerful AHTSs (>22,000 bhp), meanwhile, saw average utilisation rates in March 2025 hit 48%, down from 51% in February 2025 and 44% in December. But day rates for large AHTSs were up 24.34% y-o-y, averaging GBP56,798 in March 2025, up from GBP45,681 in March 2024.

Seabrokers describes this rapidly changing, Jekyll and Hyde period as a “tough balancing act for the AHTS sector.” The broker notes March 2025 was a tale of two stories, with the first half of the month favouring charterers with ample vessel supply and low rates, and the second half of the month tipping back to the benefit of owners.

“Market dynamics changed in spectacular fashion”

The broker says during early March “there were days when more than 20 vessels were sitting prompt available, with examples of spot fixtures as low as GBP15,000 or NOK200,000.”

But the market dynamics changed “in spectacular fashion” in the second half of the month, as “day rates skyrocketed” amid tightening supply.

“Multiple charterers have been forced to shell out more than GBP150,000 or NOK1.5 million per day to secure spot tonnage, and with multiple vessels scheduled to depart to fulfil contracts in other regions, charterers are braced for further rate spikes in the weeks and months to come,” said the broker.