The Middle East offshore vessel market has seen a rise in demand and rates due to tight supply, leading industry players to show optimism for the future. However, speakers at the Seatrade Maritime Middle East forum noted that there is a lack of new tonnage, and challenges remain in areas such as financing, logistics, and shipyard space. This shortage could cause delays in developing offshore projects without new tonnage to meet demand.
Albwardy Damen managing director Lars Seistrup warned that shipyard spaces are expected to be occupied by the end of 2023, and supply chain delays could increase the time needed to build a standard tug from four months to up to 16 months. Martin Helweg, CEO of P&O Maritime Logistics, explained that companies have lost a lot of money in the offshore marine market and want to see better returns before investing in new construction. Despite signs of a strong market, many businesses are hesitant to invest more capital at this time.
Some speakers suggested that pent-up PSV capacity with cold storage may not return to the market, as many vessels have broken down and owners cannot afford to scrap them. The market momentum is currently financially non-existent, and returns are not yet at a level that satisfies shareholders.
Tags: Offshore Wind,Middle East and Africa