The Role of Data in Tackling OSV Industry Challenges

Mar 1, 2023 | Blog

Images: Rivieramm

Insights from Opsealog and the OSJ 2023

The Offshore Support Journal Conference and Awards 2023 was an incredible event that took place from February 7th to 9th in London. It brought together the key players of the offshore supply vessel (OSV) industry from around the world to share insights and discuss the industry’s current state. With the current global economy and interest rates reaching all-time highs, the panel discussions highlighted the OSV industry challenges and the exciting opportunities for growth and innovation. The event was an excellent opportunity for Opsealog to participate in discussions and observe substantial trends that will significantly impact the industry moving forward.

Lack of New Builds Drives OSV Daily Rates Up

Recently, the global economy and interest rates have risen to record highs, leading to a significant drop in ship construction. As a result, the daily rates for Offshore Supply Vessels (OSVs) have increased notably, a trend unseen in the past decade. 

Shipbuilding is a capital-intensive industry that demands substantial financing to construct new ships. High-interest rates can make it more expensive for shipbuilders to obtain loans to fund their projects.

The shortage of available OSVs in the market has given shipowners more bargaining power, enabling them to demand higher rates.

Older Vessels Will Remain on the Market

The reduced supply of OSVs has caused a shift in the market dynamics, allowing shipowners to hold more leverage than ever before. With fewer OSVs available, charterers are finding it challenging to charter the best vessels and settling for what is available instead. This means that older and less efficient vessels will continue to remain in the market, despite their negative impact on the environment.

Shipowners Hold More Power Than Ever

Not long ago, shipowners struggled to meet the low prices demanded by charterers and had to resort to extreme measures such as stacking their vessels or scrapping them altogether.

With the lack of new builds and the high demand for OSVs, shipowners hold more power than ever before. They are in a position to negotiate favorable contracts with charterers.

Seafarers Retention Remains a Challenge

One of the biggest challenges facing the offshore industry is the lack of seafarers. Places like Brazil and other regions are already facing this problem, and players are trying to increase the sector’s attractiveness to increase retention. The goal is to attract new professionals and seafarers who no longer work at sea. To do so, a big investment in training programs is needed to reinsert professionals who had to leave the sector due to the previous crisis. 

This investment in training not only helps bring back experienced workers but also provides new opportunities for those looking to enter the offshore industry. It’s clear that addressing the shortage of seafarers is crucial for the industry’s growth and sustainability, and investment in training could be a vital step towards achieving this goal.

Recommended article: Maritime Digitalization: Expectations vs Reality

Data is Key to Addressing OSV Industry Challenges

The key takeaway from the Offshore Support Journal Conference and Awards 2023 is that data is an asset to address these challenges. 

Cost reduction

It enables charters to make savings through data analysis and best practice implementation. 

Vessel Benchmark

An effective benchmark of vessels, especially in regards to environmental performance, will be crucial for charterers to know better the ships they hire and their impacts. 

Enhance Seafarer Welbeing

Additionally, using technology to improve seafarers’ well-being on board and increase retention will be key. Here are some examples of digital initiatives that increase seafarer well-being: report digitalization, optimization of administration work, and improved connectivity onboard, among others.

Recommended article: Why isn’t digitalization reducing reporting workloads onboard ships?

Opsealog Wins Offshore Support Journal Award

OSV Industry Challenges

Opsealog was thrilled to win the Offshore Support Journal Award during the event. This recognition was due to a project implemented in collaboration with ADNOC Logistics & Services. It proves that digitalization is not only one piece of the puzzle but the main frame of what the landscape of marine logistics will look like in the near future.

Damien Bertin, Business Director at Opsealog, explains, “the conferences and speakers were excellent; we can identify the trends and challenges the industry’s facing, and we can see the increasing tension of the market since charterers are struggling between International and local regulations in one hand, and on the other hand shipowners and investors prefer waiting for tangible results before making big investments in new and ship environmental technologies to renew their offshore fleets. It represents an opportunity since our CAPEX-free solution allows our customers to both comply with regulations and reduce the costs and environmental impact of the existing fleets…”

Conclusion: Data is the Best Ally

The Offshore Support Journal Conference and Awards 2023 demonstrated that data is the best ally of all players in the sector, whether at high or low prices. Digitalization provides the flexibility to adjust and prepare for such complicated and unpredictable times. It is crucial for players to know this and invest in such technologies not only for short-term goals but also for long-term returns. In the coming years, we expect data-driven technologies to continue to play a vital role in the success of the offshore industry.

Aside from the insights we gathered on the industry trends and challenges, attending the Offshore Support Journal Conference and Awards 2023 also gave us the opportunity to connect and exchange ideas with other key players in the sector. 

We enjoyed hearing their perspectives on the current state of the industry and their approaches to addressing the environmental challenges that come with it. It was enriching to learn about the different innovations being developed to bridge the gap between environmental ambitions and reality and to see the industry’s collective effort toward sustainability. 

Overall, the event was a great platform for knowledge-sharing and networking, and we are looking forward to participating in future events.

Recommended article: Maritime Data Quality: The Crucial Ingredient In Achieving Efficiency

Global Analysis of OSV Market – 2024 Report

Introduction to the OSV Market The Offshore Support Vessel (OSV) market is a critical component of the broader maritime industry. OSVs play a pivotal role in supporting offshore exploration, production, and construction activities. These specialized vessels provide...

BOURBON and Opsealog partner to reduce fleet emissions through data-driven fleet optimisation

Picture credit: Bourbon The agreement follows a successful pilot with 25 Offshore Support Vessels, which saved an average of 45 to 50 tonnes of CO2 per vessel each month. Marseille, 18th of July 2024 – Enhanced fleet monitoring and data-driven optimisation will be...

Concrete Ways to Improve Vessel Operational Efficiency with Data

During a webinar hosted by The Digital Ship, on June 27th, 2024, Malo Sergent, Global Account Manager at Opsealog presented concrete ways to improve vessel operational efficiency with data. You will hear 3 use cases from Offshore Support Vessels, relevant to...

Optimizing Vessels’ Fuel Efficiency: A Data-Driven Case Study

Offshore Supply Vessels (OSVs) face unique challenges when optimizing fuel efficiency and operational practices. Streamlining operations to reduce costs and minimize environmental impact can be challenging with a diverse fleet serving various offshore activities....

Opsealog and Orange Marine renew contract to enhance fleet digitalization

Picture credit: Orange Marine Marseille, France - 11th of June 2024 – Opsealog, a provider of data integration and analysis services for the maritime and offshore industry, has confirmed the renewal and expansion of its service contract with Orange Marine, a prominent...

Beyond the port: fuel efficiency challenges in field transits for OSV’s.

Offshore Support Vessels (OSVs) manage time logistics and intricate marine operations, where fuel efficiency is challenging, especially during transits. Faced with multiple challenges, optimizing the fleet’s consumption entails regularly assessing and monitoring...

Improving Fuel Efficiency and Vessel Availability – OSV Case Study

During a webinar hosted by The Digital Ship, on May 7th, 2024, Damien BERTIN, Business Director at Opsealog and Gilles CROS, technical director at Opsealog presented on the topic of fuel efficiency and Vessel Availability in the Offshore Supply Vessel industry. In...

Episode 2 – From Seafarer to Co-founder, Arnaud Dianoux

Welcome to the latest episode of 'Maritime with a French Accent'! In this podcast, Arnaud Dianoux, Co-founder of Opsealog will be our speaker as he shares his unique journey in the maritime world. From his earliest childhood dreams to his adventures as a cadet officer...

Episode 1 – Maritime perspectives from a former seafarer, Colomban Monnier

Maritime with a French Accent, the podcast dedicated to maritime testimonials and innovation. In this first episode of "Maritime With a French Accent" podcast, meet Colomban Monnier, Foundry Manager at Opsealog and former seafarer who shares his experience in the...

Data for Decarbonization: OSV Regulatory horizons

Offshore Supply Vessel (OSV) operators are experiencing significant pressure – while currently indirect –to comply with environmental regulations and adopt decarbonization initiatives. However, they must anticipate future regulatory requirements and prepare...