Restructuring of the OSV business is far from finished


#41

[QUOTE=AHTS Master;196212]Looks like GulfMark is going down.[/QUOTE]

well it was bound to happen to someone first but I still hold that there will be more blood to be let before the year is out…

I’d recon that 50% of the entire fleet is now idle including more than a couple brand new boats which have yet to ever go to work


#42

Tidewater and Hornbeck won’t be far behind. [QUOTE=AHTS Master;196212]Looks like GulfMark is going down.


#43

[QUOTE=Cajun Guy;196242]Tidewater and Hornbeck won’t be far behind.[/QUOTE]

I would bet on Tidewater being next.


#44

Let’s not buy those flowers for the funeral just yet…

Hornbeck Offshore: A Consolidator In The Offshore Supply Vessel Industry $HOS


#45

GulfMark has a fairly modern fleet of vessels, mainly PSVs, operating in the North Sea and S.E.Asia: https://www.gulfmark.com/areas-of-operation.html

Likewise, Tidewater is operating a large fleet around the world, with possibilities to split their their various operating companies, thus spreading the risk.

HOS is more of a pure GoM operator I believe??


#46

[QUOTE=c.captain;196224]well it was bound to happen to someone first but I still hold that there will be more blood to be let before the year is out…

I’d recon that 50% of the entire fleet is now idle including more than a couple brand new boats which have yet to ever go to work[/QUOTE]

Even if the Owners/Operators goes down the vessels still exist. Likewise, the vessels in layup are still depressing the market by their mere existence.

The oversupply can only be resolved by drastic scrapping of obsolete vessels, whether they are old or built to old designs and with inefficient machinery and equipment. (Not just by age limit)

As it is, the old and cheap boats, with low overhead and finance costs are underbidding and depressing day rates.

That low day rate and low fuel consumption at “economic speed” doesn’t equates low overall costs for the Charterer is difficult to explain to certain Operators, especially where the bean counters have final say. (I know, I have tried for years)

The alternative is conversion to other service, which is mostly relevant for modern PSVs.


#47

Mexico Operations Hornbeck Offshore Operators de Mexico S. de R.L. de C.V.
Calle 60#54
Colonia Petrolera
Entre Avenida Aviación y
Avenida Concordia
Ciudad del Carmen,
Campeche Mexico
CP24179
Phone: 011-52-938-138-1810
or 011-52-933-119-5248

Brazil Operations
Hornbeck Offshore Navegacao Ltda.
Av. José Silva de Azevedo Neto, nº 200
Sala 201, Bloco 4, Evolution V
Condomínio O2
Barra da Tijuca | Rio de Janeiro, RJ
Brazil
CEP: 22775-056
Phone: (+5521) 3613-6600

Middle East operations but no permanent office there.


#48

If any significant number of the oil patch anchor boats are going to be repurposed for cheap towing services to avoid cold stacking costs, some of the tug companies are going to be crippled, if not forced into bankruptcy.


#49

I don’t think that will happen.


#50

[QUOTE=Fraqrat;196254]Mexico Operations Hornbeck Offshore Operators de Mexico S. de R.L. de C.V.
Calle 60#54
Colonia Petrolera
Entre Avenida Aviación y
Avenida Concordia
Ciudad del Carmen,
Campeche Mexico
CP24179
Phone: 011-52-938-138-1810
or 011-52-933-119-5248

Brazil Operations
Hornbeck Offshore Navegacao Ltda.
Av. José Silva de Azevedo Neto, nº 200
Sala 201, Bloco 4, Evolution V
Condomínio O2
Barra da Tijuca | Rio de Janeiro, RJ
Brazil
CEP: 22775-056
Phone: (+5521) 3613-6600

Middle East operations but no permanent office there.[/QUOTE]

Yes I know, but the MAJORITY of their operations ar within GoM. (Including in Mexico)
Their foreign built boats are not Jones Act approved, thus “foreign” even is working within the US part of GoM.

Likewise, are what few boats working in Brasil and Middle East US flag, with US crews???


#51

[QUOTE=tugsailor;196258]If any significant number of the oil patch anchor boats are going to be repurposed for cheap towing services to avoid cold stacking costs, some of the tug companies are going to be crippled, if not forced into bankruptcy.[/QUOTE]

How many long distance towing jobs that is RESERVED for US flag vessels do you see coming up in the nearest year or two??
Can US flag vessels compete on the world market for towing contracts not issued by the US Navy???

      • Updated - - -

Not OSV restructuring this time, but saving the first rig in the Island Offshore fleet: http://www.smp.no/naeringsliv/2017/03/17/Kriseløsning-for-Ulstein-rigg-nuller-ut-Mohn-14460305.ece?cx_front_click=baseline_test&cx_front_click_place=8&cx_front_click_articles=3
You may find the partners involved interesting.


#52

Absolutely. It’s bad enough the OSV industry’s laid off mariners swarmed over to the tugs further stagnating our wages, at least at my company.


#53

US flagged and they follow local rules wherever operating. Usually that means American captain and chief and everyone else local.


#54

The US ocean towing business is largely dependent on government work, or at least government funded work, that requires the use of US flag tugs. Generally, US flag tugs are not competitive in the international market for obvious reasons, such as US tax laws, much higher crew costs, etc.

Government funded work is a very important portion of what many tug companies do.

Normally, the US oil patch also provides a lot of very profitable towing work, but it does not look like there will be much of that for the next few years.

I’m hearing a very bleak outlook for the next few years from most managers and owners at tug companies. It seems like more and more tugs are for sale at falling prices. Obviously, well established and well managed tug companies of some size with reasonable overhead and without too much leverage are going to continue to do ok. Some companies are not going to survive.


#55

Yes that has been the norm for US flag vessels working in the Offshore business anywhere outside US waters as long as I can remember. (Often only the Master is US citizen)
This applies whether local regulations require local crews or not though.
It is usually Owner’s choice, because they CAN, not because they HAVE to.

I have come across the odd American on foreign owned and operated OSVs . (Usually living abroad though)


#56

Situation report from Splash 24/7 today: http://splash247.com/sell-stack-scrap-osvs/


#57

Interesting that the scrap value of many OSVs isn’t even enough to cover the costs of reactivation and fuel, or tow, to a scrap yard, guess once all the ship owners start going bust it will be left to the local governments of lay-up locations to dispose of them.


#58

SHEER GENIOUS! by jove you have found the answer to all these OSV companies problems! owners abandon in backwater bayoos with all markings or ID numbers ground off, then the government hires contractors to clean the shit out em, pull any machinery with value off, and sink the effers to be artificial reefs…

WHAT A STOOPID BUSINESS THE OFFSHORE INDUSTRY IS!


#59

That is pretty much what is going to happen, there are too many ships that nobody wants or needs.


#60

Are you just so hysterical​that you didn’t actually read what he said? How is that the “answer to all these OSV companies problems”? They have to go out of business for it to happen. Why would the numbers have to be ground off? If there’s no company to charge for the removal what’s the government going to do?