Business Sectors
Business Sectors
Events
Contents
Register to read more articles.
2024 in the OSV market: seven key takeaways
Rising day rates and vessel utilisation, increased EPC spending, and newbuilding orders have powered a resurgent OSV market during the year
Optimism returned to the offshore support vessel (OSV) market in 2024, triggering the first significant orders for newbuilds in the sector in about a decade. This is one of seven key takeaways highlighted by OSJ during 2024.
Rising day rates and vessel utilisation
2024 was marked by rising day rates and fleet utilisation and a rosier outlook for offshore oil and gas. There was tight supply for both OSVs and offshore drilling equipment, with the latter reaching 526 active rigs and a marketed utilisation of 87% — its highest level since 2016, according to Westwood Global Energy. Effective utilisation rates for OSVs hit 75% and could rise to 78% by 2027.
Tidewater, the largest OSV owner, reported a consolidated average day rate of US$22,275 for Q3 2024, up 5% from the previous quarter.
Increased project spending
Global upstream engineering, procurement, and construction (EPC) spending was projected to reach US$63Bn, up 43% year-on-year, according to Westwood. The energy analyst reported the top three spending regions for the year were Latin America, southeast Asia and the Middle East.
Oil price stability
Despite global geopolitical instability fuelled by conflict in the Middle East, the ongoing Ukrainian war and tensions in the South China Sea, the price of a barrel of oil remained within a stable range during the year. Looking at the benchmarks for oil, a barrel of Brent crude started 2024 trading at about US$80.12, while West Texas Intermediate (WTI) was priced at US$74.15. As of 12 December 2024, WTI closed at US$70.25, while Brent was selling at US$73.52, according to the US Energy Information Administration.
Fresh faces
A resurgent offshore oil and gas market encouraged non-traditional OSV investors to pull the trigger on newbuilds, injecting profits gained from other shipping sectors. Cash-flush Greek shipowners flocked to the offshore vessel market, led by billionaire shipping magnate Evangelos Marinakis, and his hard-charging Capital Offshore.
Newbuilding orders
Capital Offshore and other Greek shipowners were quick to order newbuilds, particularly with expanding opportunities in Brazil.
Joining the wave of Greek shipowners in ordering new tonnage were traditional Scandinavian OSV owners led by Agalas and Eidesvik Offshore, Island Offshore, Maersk (before its merger with DOF), Ostensjø Rederi, Norwind and Rem Offshore. US-based SEACOR Marine also threw its hat into the new construction market, ordering two battery-hybrid platform supply vessels. Notably, all the OSVs ordered have been specified with batteries, signalling the maturation of maritime electrification.
Newbuilds are not yet on the shopping list for Jones Act OSV owners, though Hornbeck Offshore Services will add two long-delayed MPSVs next year.
Secondhand prices rise, sales slow
There was clearly a softening of S&P activity during the year, as prices for secondhand tonnage reached premium levels. As of 1 December, vessel sales transactions were down 43% year-on-year, reaching US$1.63Bn, with 155 vessels changing hands, according to VesselsValue.
Wheeling and dealing
The uptick in the offshore oil and gas and offshore wind markets fuelled strong M&A activity, led by DOF Group’s US$1.1Bn acquisition of Maersk Supply Service and Cyan Renewables’ US$702M deal for MMA Offshore. Joining the list were Adani’s acquisition of 80% of Astro Offshore, and Edison Chouest Offshore’s move on ROVOP. Those deals have all been shortlisted for the OSJ John Westwood Deal of the Year Award. You still have a chance to cast your vote for your favourite deal, along with all the other 2025 Offshore Support Journal Awards. Voting closes on 20 January 2025. Don’t miss your opportunity. Winners will be announced during the gala dinner on 4 February at the Annual Offshore Support Journal Conference, Awards & Exhibition.
Related to this Story
Events
© 2026 Riviera Maritime Media Ltd.
