Oversupplied OSV Market Facing Record Number of Deliveries in 2017

File photo
File photo

A record 450 offshore supply vessels are still scheduled for delivery in 2017 despite a massive oversupply in the market, according to new figures released by VesselsValue. 

Already this year 15 OSV deliveries have taken place, bringing the total number of deliveries in 2017 to 465. 

The record number of deliveries will likely exacerbate the problems faced by the offshore supply vessel market, where more restructuring and even bankruptcies are expected to take place this year. Demand for OSVs has fallen since the price of crude oil began crashing in 2014, causing lower activity across the offshore oil and gas industry.

According to VesselsValue, there are currently 456 OSV vessels on order throughout the world and, incredibly, 450 of these will be delivered in 2017. Only 6 scheduled for delivery in 2018.

 

Number of OSV Vessels delivered by Year

 Looking at where these deliveries are taking place, Malaysian owners have the largest number of OSVs currently on order, with 109, followed by Singapore, China, and the United States. 

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By owner, the Malaysian company Nam Cheong International LTD has the most deliveries scheduled with 56 vessels. They are followed by another Malaysian company, Coastal Contracts, which only has 28 OSV vessels on order. US-based Tidewater Marine and Edison Chouest Offshore each have 10 and 11 vessels on order, respectively.

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