Offshore Supply Vessels Market Research Report – Forecast to 2030

Impact of Covid-19 Outbreak on Offshore Supply Vessel Market

The spread of COVID-19 pandemic has majorly impacted the global shipping market with the slump in demand for goods, thereby affecting everything including container ships, oil tankers, and offshore supply vessels, among others. Within the shipping industry, China is considered a major trade partner for various countries and one of the key leaders in the shipping industry. Moreover, the pandemic outbreak came in China when shipping companies generally experienced lower demand due to Chinese New Year (CNY), and further deteriorated the situation for the shipping industry. It is also stated that by the Shanghai International Shipping Institute that pandemic has led to reduced capacity utilization which fell between 20% and 50% at the biggest Chinese ports and caused a sharp increase in the use of port storage facilities.

FIGURE: CHINESE CRUDE TANKER DEMAND, 2020

As ports are the facilities for loading and unloading of cargo and passenger sea vehicles such as boats and ships and act as a protective shelter for vessels. Vessels are considered the major factors for the maintenance of maritime transport. In addition to the hygienic measures to be taken on the vessels, a circular has been published by the Ministry of Transport and Infrastructure and General Directorate of Maritime Affairs, which states all the measures have been taking by the Turkish and foreign-flagged vessels. For instance, pre-survey inspections are being performed to the Turkish flagged vessels, any extension request for certification and survey for ships and companies will be granted up to 3 months after the review of the General Directorate of Maritime, and to intensify free and clean pratique procedures. Additionally, the weaker outlook in the shipping and maritime industry has resulted in less contracting and more demolition, due to pandemic and many restrictions around the world. Despite the decrease seen in contracting activity, many vessels have also been sent for demolition in the first quarter of the FY’2020. This was due to higher fuel prices and poor market conditions, which made it more attractive to scrap older ships rather than to keep them sailing and losing money.

Source: Primary Experts, Secondary Sources, and MRFR Analysis

Source: VesselsValue February 2020