Shipping Industry News: Public data shows that so far this year, a total of five offshore support vessel orders have been generated globally, including four Anchor Handling Tug Supply (AHTS) vessels and one Platform Supply Vessel (PSV). These orders mainly come from Middle Eastern shipowners. Todd Jensen, Associate Director of Maritime Strategies International (MSI), pointed out that following the surge in orders after 2023, the current enthusiasm for shipbuilding orders has returned to normal. The industry’s future ordering demand will primarily focus on fleet renewal rather than expansion.
Although ship demolition volumes remain near historical lows, the arrival of new capacity is expected to accelerate the retirement of older vessels. At the same time, geopolitical risks in the Middle East may pose potential constraints on vessel availability and redeployment.
Market forecasts indicate that offshore vessel charter rates will continue to strengthen from 2027 to 2028. In the Middle East market, the peak daily charter rate for 5,000 to 5,500 bhp AHTS vessels could reach $15,000; large AHTS vessels continue to record the most substantial returns, with daily rates for 17,000 to 18,000 bhp vessels in Brazil expected to exceed $75,000. Meanwhile, deepwater oil and gas development in West Africa and South America continues to support PSV demand. As the offshore market enters a rebalancing phase, average daily charter rates are expected to weaken towards the end of this decade.
Geopolitical conflicts drive up asset values, EPC tender pipeline remains ample
The 2026 Middle East conflict reshaped the global crude oil market and geopolitical landscape, causing significant disruptions in crude oil supply, rising energy prices, and a realignment of global crude oil trade flows, which had a major impact on oil prices. Although the market is expected to gradually recover over time, the medium to long-term effects of geopolitical fragmentation, global supply chain restructuring, and upgraded national energy security strategies will continue to permeate the entire industry chain, and the offshore support vessel industry will not be immune.
According to reports, MSI has slightly raised its valuations for second-hand offshore vessels since the first quarter of 2026. Higher oil prices, scarce newbuilding orders, and tight supply of age-appropriate second-hand vessels have jointly pushed up vessel prices. Trading activity in the second quarter remained relatively subdued, but notable transactions included the sale of the “Skandi Emerald” by DDW Offshore for $23 million, and the sale of two Bourbon AHTS vessels. The aging trend of the global fleet continues to support asset values, while Petrobras signing a $2 billion contract with DOF Group to build four Remotely Operated Support Vessels (ROVSV) confirms market optimism for long-term offshore oil and gas demand.
Engineering, Procurement, and Construction (EPC) project contract signings weakened in the first half of this year, with cumulative signed contracts totaling approximately $15.2 billion as of mid-June. Brazil, driven by Petrobras’ large Floating Production Storage and Offloading (FPSO) units and subsea pipelines, risers, and flowline projects, continues to dominate market activity. The Middle East, West Africa, Southeast Asia, the UK, and Guyana maintain a selective investment stance. The total value of global projects tracked by MSI awaiting tender reaches $31.1 billion, with the Middle East and West Africa being the two core markets.
OSV demand remains strong, highly correlated with mobile offshore drilling unit activity. AHTS demand is expected to peak in 2027, with approximately 1,480 small vessels and 280 large vessels, before gradually slowing down to 2030. Benefiting from the continued progress of FPSO construction and drilling projects in West Africa and South America, PSV demand is expected to remain largely stable. Tight vessel supply, coupled with potential upside from the recovery of Middle East activity and approval of more deepwater projects, continues to support the market outlook.
Looking at other factors influencing OSV demand, the number of fixed platforms is expected to decline by 4% by 2030 due to increased decommissioning, while floating platforms are expected to grow by 4% to 540 units, primarily driven by deepwater development projects in West Africa and South America. From the perspective of drivers for offshore vessel demand, affected by the wave of oil and gas platform decommissioning, the number of fixed offshore platforms is expected to decline by 4% by 2030; simultaneously, relying on deepwater project development in West Africa and South America, the total number of floating platforms will increase by 4% to 540 units.
Second-hand valuations stable with slight increase, aging vessel age restricts trading activity
Affected by rising oil prices and sluggish newbuilding deliveries and new orders, MSI’s second-hand vessel valuation report for the second quarter of 2026 was again slightly raised compared to the first quarter. According to the latest outlook, for AHTS vessels in the 5,000 to 5,500 bhp class, a 5-year-old vessel can be priced at $14 million, and a 10-year-old vessel at $10.7 million. Prices are expected to remain relatively stable in 2027 but will decline towards the end of this decade due to newbuilding deliveries entering the market and falling oil prices. By 2030, the valuation of a typical 5-year-old vessel is projected to drop to $12.3 million, and a 10-year-old vessel to $9.1 million, corresponding to average annual compound declines of 1% and 3%, respectively.
Prices for PSV vessels of 3,000 to 3,500 deadweight tonnage have also been revised upwards. In MSI’s first-quarter report, the valuation of a 5-year-old PSV was $21.9 million, which was raised to $22.6 million in the second quarter. This upward revision is also influenced by factors such as tight supply and insufficient newbuilding placements. However, as shipowners face fleet renewal needs, a certain number of newbuilding orders are expected, and the second-hand price for this type of vessel is projected to fall back to $17 million by 2030, with an average annual compound decline of 2%.
The scarcity of age-appropriate second-hand vessels is the core pain point restricting the second-hand trading market. In the current global combined fleet of AHTS and PSV vessels, 47% of vessels are over 15 years old. Most shipowners are unwilling to purchase aging vessels, significantly reducing the pool of high-quality vessels actually available for purchase. Coupled with persistent difficulties in vessel financing, this further restricts the trading activity of second-hand vessels.
