News

Maritime CEO to make a splash on new online platform

Maritime CEO to make a splash on new online platform

Singapore: Today sees the launch of a brand new shipping news title, Splash, designed to be the site for incisive, exclusive maritime news and views 24/7. With a network of correspondents spanning the globe, loading in real time, Splash promises to be something refreshingly different to today’s maritime media offerings.

integrum: Bye bye to spreadsheets

integrum: Bye bye to spreadsheetsSydney: The days of companies running off Microsoft Excel need to come to an end, argues a software expert in today’s Maritime CEO interview. Australian company integrum Management Solutions is a software solution for integrated m...

Marine Café Blog: Crewing issues

Marine Café Blog: Crewing issues Manila: One of the must-go-to sites for maritime is now into its sixth year. Founded by Barista Uno in Manila, Marine Café Blog is something refreshingly different in today’s cluttered shipping media landscape.

Franbo Lines: Replacement tonnage following listing

Franbo Lines: Replacement tonnage following listingTaipei: However perilously low the Baltic Dry Index might be there are opportunities to be had this year in the dry bulk sector insists the chairman of quickly evolving Franbo Lines from Taiwan. Pang-Chuan Tsai, Franbo’s chairm...

Reederei NSB: Flag frustrations

Reederei NSB: Flag frustrationsHamburg: Helmut Ponath, ceo of Reederei NSB, is exasperated at Berlin’s intransigence on making the German flag more competitive and more in line with other European nations. As the shipping line with the highest number of German ...

SafeGuard Armour: Added protection

SafeGuard Armour: Added protectionLeeds: With piracy remaining a hot topic in 2015 especially in Southeast Asia one company is promoting the idea of seafarers wearing body armour when transiting dangerous waters. And the apparel can also prevent injuries in rough we...

Theodor Buschmann: African expansion

Theodor Buschmann: African expansionHamburg: A German shipyard is expanding overseas, establishing subsidiaries in Africa and the Mediterranean and looking for more international possibilities. Theordor Buschmann is a well respected shipyard in Hamburg, involved in sh...

Asia Pacific Connex: Jack-up precipice nearing

Asia Pacific Connex: Jack-up precipice nearingPerth: Drillships have already been hit hard by the declining oil price, but the worst is yet to come for jack-up rigs, says a leading Australian offshore consultant. Andre Wheeler heads up Asia Pacific Connex, a company connecting ...

Dalmare: Mediterranen focus

Dalmare: Mediterranen focusLeghorn: Following the abandonment of the dry bulk market with the sale of some assets recently, Dalmare’s future strategy is to focus on the liquid bulk business mainly in the Mediterranen. Gaetano D’Alesio, managing director o...

Globe Tracker: Reefer innovation

Globe Tracker: Reefer innovation Copenhagen: Intermodal 45-foot container manufacturing pioneer UNIT45 has partnered with Globe Tracker International, a leader in global supply chain visibility, to offer the first commercial smart refrigerated container.

China Federation of Logistics and Purchasing: Cold chain priorities

China Federation of Logistics and Purchasing: Cold chain prioritiesBeijing: Driven by the increasing affluence of the middle classes, who have a growing appetite for quality frozen packaged foodstuffs, China is seeing a burgeoning demand for cold chain services. The growing awareness of food safety...

Lucky Trans: Beyond containerships

Qingdao: While domestic coastal container shipping market is still a battlefield for shipping companies that are struggling to survive, Lucky Trans, a domestic container shipping company headquartered in Qingdao, tends to get away from the price war ...

IRI: The decentralised register

Reston: In the 15 years International Registries, Inc has been administering the Marshall Islands flag, the register has become a truly global organisation, something its president is keen to trumpet. “While many registries claim to be decentral...

Frontline: Opportunities in a low market

Oslo: He might no longer be the ceo of Frontline Management, but as a director at Frontline, Jens Martin Jensen remains at the centre of planning at the John Fredricksen-controlled flagship firm. Jensen stepped down as ceo last November and now has...

Wartsila: New generation of engines set to launch

Shanghai: Leading Finnish power firm, Wartsila, will debut a brand new generation of engines this summer, something president and ceo, Björn Rosengren admits will be “a big thing”. The new range of engines follow on from Wartsila’s new produ...

ReCAAP: Report all maritime crime incidents

Singapore: Shipowners, operators and managers should report every piracy attempt, however small the incident appears to be, for authorities to get a better picture of what is happening in the maritime crime arena. That’s the view of Yoshihisa Endo,...

Penta Shipping: Carriers will remain firm on rates

Copenhagen: Despite a drop in bunker prices containerlines are unlikely to budge too much when it comes to rates negotiations, says Jan Timmerman, a partner and director of Penta Shipping.

MacGregor: Further acquisitions possible

Helsinki: Despite turbulence caused by the falling oil price, equipment manufacturer MacGregor is still eyeing more acquisitions. With Mika Vehviläinen, the boss of parent firm Cargotec, in temporary charge since last June, MacGregor has bedded d...

Awilco LNG: Rates can only get better

Oslo: The only way is up for the LNG shipping sector. That’s the view of the ceo of Norway’s Awilco LNG, Jon Skule Storheill, who admits current trading conditions could barely be worse. “The LNG shipping market is currently at a very weak po...

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A team of experienced journalists from around the world makes contact with the most important executives in our industry every day. These interviews are then turned into profiles and released one per day on this site.

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2014 Issue 4
Singapore 14

In Focus

Cheaper oil puts brakes on OSVs

Kohe Hasan from law firm Oon & Bazul on the offshore outlook for 2015

Cheaper oil puts brakes on OSVs

The offshore supply vessel (OSV) industry has seen significant growth in recent years. However, the steep fall in oil prices of late could put a spanner in the works for the OSV industry.

At present, global oil prices are in the middle of one of its steepest selloffs since the financial crisis of 2008/2009.  World oil prices, which were hovering in the region of $110 per barrel from January 2010 until mid-2014, have taken a nose dive since June, more than halving in the past six months.

Whilst the decline in oil prices is likely to be a boon for consumers, the same cannot be said for the OSV industry. This is because oil majors are likely to cancel or delay their drilling operations and big-ticket production projects which are predicated on high oil prices. Evidence of this can already be seen in the recent announcement by ConocoPhillips that it would be cutting investment spending in 2015 by 20%.

The potential reduction in drilling operations and production projects would be of particular significance to OSV operators (both owners and charterers). This is so as drilling operations are a key driver in the demand for the use of OSVs such as platform supply and anchor handling tug vessels. OSV operators are therefore expected to experience a fall in the demand for OSVs.

One possible repercussion of the fall in the prices of oil and the expected fall in demand for OSVs is that charterers may seek to discharge themselves from charterparties which they had concluded prior to this decline. Such a trend was seen from the collapse of the freight market in 2008 which saw many charterers in the dry bulk industry attempt to discharge themselves from unprofitable charters. Similarly, this trend is likely to be seen in the context of the OSV industry as charterers would find that their charterparties have become significantly less profitable if the OSVs are unutilised as a result of the fall in demand. The need to discharge  ...   More>>