OSV supply overload feared as shipbuilders enter market

OVERSUPPLY is growing in the offshore marine sector as more traditional shipbuilders shift their focus towards building offshore support vessels (OSVs) to overcome the poor demand in their own market.

One industry player feels that this trend, particularly with Chinese yards jumping on the OSV bandwagon, could potentially send the offshore industry down the road of a supply overload, as was experienced by the traditional shipbuilding market.

Alex Yeo, chief executive of mainboard-listed Swissco Holdings, sounded out this caution even though he noted that the OSV market is more resilient than the traditional ship market, and therefore better prepared to weather such a setback.