Bargain Time


#1

It looks like ECO and Maersk have signed big deals with the Majors. The cheap dayrates in the OSV market
and locked in contracts could be an issue if the dayrates climb back to 2012 levels.


#2

They’ll renegotiate the day rates up just like when the rates tanked they renegotiated day rates down.


#3

It will be 2072 before we see 2012 rates again!


#4

I want it to pick up so all these mud boat guys who came east to go tuggin will go back to their mud boats.


#5

I have been reading that since there are simply zero buyers these days that second hand valuations on all manner of OSVs simply cannot be made by brokers. what very few sales have taken place of used tonnage has been at a tiny fraction of the valuation placed on the vessel only two years ago. right now I would imagine a decent 220’ DP1 PSV 10 to 15 years old can be had for $500k…maybe even less. when Tidewater goes into liquidation, expect these minuscule valuations to go even lower.

the question of course being what can you do with these vessels out of the oilfield? today is not like back in the 80’s when there was a huge demand in Alaska for them


#6

Only one man stands ready to absorb this old tonnage into his armada.


#7

And aside from how freakin’ slow they are, an old OSV or two would be great RHIB tenders for Sea Shepherd. Heck, even the USN knows that they’re good for that.


#8

It will be good times for the yacht shadow boat business.


#9

I still like US Jones Act expedition cruiseships but until the USCG mandates the retirement of all those in service built more than 30 years ago, there won’t be enough demand however I do know that the market is very strong these days for vessels to do all Alaskan itineraries so hopefully one company will see the tremendous conversion potential in these large OSVs to carry passengers


#10

Maybe this company would be the right one to take up the idea?: http://www.sunstonetours.com/
They are already active in Alaska with small but old ships

They are also active in the Polar Expedition Vessel segment. They just finalized the contract for a “design, equipment and building supervision” packet for 4 such vessels with Ulstein Group, with options for 6 more: http://www.seatrade-cruise.com/news/news-headlines/sunstone-china-group-to-build-4-6-expedition-cruise-ships.html

These vessels will be built in China, so not eligible for internal Alaska only cruises, so your idea may be attractive to them.


#11

Convert them to either small container vessels (or maybe con/tank ships) and use them for either US government contracts (try to put Transatlantic out of business) or use them for a Cuba run.


#12

Sunstone doesn"t own or operate any vessels of their own…they just are a packager. the operators are Un-Cruise, Lindblad, Alaskan Dream Cruises and American Cruise Line. A few of their vessels are new (or newer) but most were built in the 70’s and 80’s

there are more than enough large and small US built OSVs only a few years old which could all be viable conversion candidates. The biggest hurdle to overcome would be any difference between SOLAS cargo and passenger vessel rules since any conversion would need to be SOLAS to qualify for winter itineraries outside US waters and whether any of the target companies are ready to abandon their reliance on small passenger vessel designation and go full 46CFR subchapter H rules meaning larger crewsizes.


#13

only the very largest OSVs could be marginally viable container vessels (remember the AKIRA CHOUEST started life as a cargo vessel on the Diego Garcia run as the MARGARET CHOUEST). Of course, that would require MSC to give any priority for charter contracts to such vessels over foreign flagged ones and I do not expect that without Congress stepping in which they ain’t prepared to do.

as far as the anticipated Cuban run is concerned, forget it! Foreign vessels will rule there. No way any OSV conversion would be competitive as a ferry.


#14

The military is required by law to ship their cargo on US flag vessels.


#15

If the mudboats sell cheaply enough they will be reflagged to some tiny island and haul stolen bicycles, used mattresses, and 20 footers to the Caribbean from Lauderdale and Miami just like they do now.

Some of those boats make good conversion stock for yacht support and explorer vessels. There is a massive conversion going on now in Lauderdale, the Voyager (ex Candy Trader) is one example.


#16

I could also see them being converted for use as research vessels.


#17

that’s a good one…thanks for the laugh


#18

Yeah, that’s why RRF ships rot at the dock while foreign flag carriers skim the cream off the taxpayer.

Remember those FoC ships that did such a great job for us moving military cargoes during Gulf War 1?


#19

I see the scrapyard in the future of the 15+ year old vessels.


#20

How else do you think Transatlantic and the other US flag carriers like them stay afloat? They haul almost exclusively US government cargo because the law is that they must use US flag ships (unless none are available).