Norwegian shipping sentiment improves but offshore gloom continues

However, offshore owners, who account for about half of the organisation’s membership, still expect demanding conditions this year, with low asset utilisation, continuing vessel lay-ups, low rates and short-term employment contracts.

February 2018 lay-up figures of 137 vessels and 25 rigs are expected to reduce to 93 ships and 17 rigs during this year, according to the survey, which expects all sectors to be more active with stronger rates. Only 23% of survey respondents expect that turnover will fall further during this year, compared with more than half last year.

“It is important to remember that a large percentage of those shipowners now anticipating improved operating results in 2018 are coming off very low levels in 2017,” said Norwegian Shipowners’ Association geo Harald Solberg (pictured). “This does not necessarily mean that a company is turning a profit.”

“The change in lay-up figures is due to a combination of increased activity on the Norwegian Continental Shelf, increased ship recycling, and ship sales,” Solberg continued. “If the forecast proves accurate, we will see a lay-up situation at the end of 2018 similar to that of autumn 2016 – two years after the price of oil dropped in 2014.”

Add Seatrade Maritime News to your Google News feed.