Operators looking to cut costs?

I was recently at a presentation and a guy I was sitting with was talking about how operators (i.e. Chevron, Shell, BP, etc.) are looking to cut costs in the Gulf. The guy was saying they wanted to pay less for vessels. Is anyone hearing anything similar or seeing day rates for your vessels going down?

Lots of articles in the press worldwide about how offshore operators must cut costs.

Soon there are going to be far too many big new boats in the Gulf and day rates will fall. Companies with too much debt will fail, boats will get sold far below cost. Companies that buy those boats at distress sale prices will do well

Its pretty obvious that wages have already flattened out. Eventually, they will fall. The big questions are when and how far.

Companies may decide to cut costs by reducing all these excessive extra trainings and certifications, and ridiculous physicals.

[QUOTE=SomeGuy;140090]I was recently at a presentation and a guy I was sitting with was talking about how operators (i.e. Chevron, Shell, BP, etc.) are looking to cut costs in the Gulf. The guy was saying they wanted to pay less for vessels. Is anyone hearing anything similar or seeing day rates for your vessels going down?[/QUOTE]

Well, I was just saying the other day that I want to pay less for gas, food, haircuts, and those delicious oreos… Wish in one hand, #@&t in the other, see which one fills up first. It’s supply and demand, nothing more, nothing less. To many boats, people, rigs, or oreos and the price will drop. How much were twinkies going for on eBay when they were not going to make any more? Wanting has no effect on price.

[QUOTE=SomeGuy;140090]I was recently at a presentation and a guy I was sitting with was talking about how operators (i.e. Chevron, Shell, BP, etc.) are looking to cut costs in the Gulf. The guy was saying they wanted to pay less for vessels. Is anyone hearing anything similar or seeing day rates for your vessels going down?[/QUOTE]

not new news at all…been on our radars here for at least a year

Did I hear a rumor of modu going back to non self propelled?
I thought uscg said we dont care what you say, we say crew as self propelled in our water.
True or not?

[QUOTE=SomeGuy;140090]I was recently at a presentation and a guy I was sitting with was talking about how operators (i.e. Chevron, Shell, BP, etc.) are looking to cut costs in the Gulf. The guy was saying they wanted to pay less for vessels. Is anyone hearing anything similar or seeing day rates for your vessels going down?[/QUOTE]

Everybody is looking to cut costs. Most of them think Minimum Safe Manning is a budget plan!

Know what that means? If you are a mariner, they will balance the budget on your back! But the shore people and the big wigs will still get to kick back on the weekends and drink beer and worry about anything but you or I.

I haven’t heard of day rates going down for the service companies (OSVs). But I know a lot of them are unhappy with the mariners day rates. They haven’t seen a big jump in vessel day rates since 05 compared to the big jump we have enjoyed lately.

[QUOTE=PR-9;140185]I haven’t heard of day rates going down for the service companies (OSVs). But I know a lot of them are unhappy with the mariners day rates. They haven’t seen a big jump in vessel day rates since 05 compared to the big jump we have enjoyed lately.[/QUOTE]

Where have you been working? Check the monthlies in Workboat Magazine or something…vessel day rates are through the roof. Their rates have increased on a far better pace than wages…for now

Hornbeck as an example. Their day rates in 2008 were 21k. Today for those same boats (not the new HOSMAX) the day rate are around 27k. I want to say that mates were making around $400 a day in 08 as compared to today’s $750.

http://ir.hornbeckoffshore.com/phoenix.zhtml?c=132245&p=irol-newsArticle&ID=1137927

http://gcaptain.com/hornbeck-offshore-mpsv-gulf-of-mexico-market/

[QUOTE=PR-9;140202]Hornbeck as an example. Their day rates in 2008 were 21k. Today for those same boats (not the new HOSMAX) the day rate are around 27k. I want to say that mates were making around $400 a day in 08 as compared to today’s $750. [/QUOTE]

hence why wages are now stagnant…the companies have gone as high as they need to attract enough talent and there is no shortage of people anymore. Rate increases for the vessels are what have tapered down. I doubt you will see any of the big offshore operators bidding up the vessels like they had when they were in short supply so we have a market balance today. All that is needed is another Katrina/Rita double whammy to throw the market into imbalance again as in 2006/07 and the vessel rates will take off once again. Of course, there is no telling what would happen to wages in such a situation. They would obviously also go up but I don’t think it would be at the same pace as with the charter rates.

Nothing like a big foreign war or widespread damage in the GoM to help the maritime industry. I’ll put my money on a big hurricane happening soon…we’re overdue.