| dc.description.abstract | This thesis studies the determinants for obtaining contracts in the North Sea offshore supply
market from 2007 to 2016. We specify a logistic regression model to investigate the effect of
vessel specifications on the probability of obtaining a contract for Offshore Support Vessels
(OSV). The model investigates the differences in vessel design and specification preferences
between the term and spot market for Platform Supply Vessels (PSV) and Anchor Handling
Tug Supply (AHTS) vessels.
We find that the determinants for obtaining contracts in the PSV segment coincide, as
younger and medium complex vessels, with large clear deck area built in Northwest Europe,
are more likely to obtain contracts in both markets. The probability of obtaining contracts in
the spot market is more sensitive to vessel specifications, compared to the term market. In
addition, having the preferred set of technical specifications is the most important determinant
in both markets.
We find that the preferences for AHTS vessel specifications are significantly diversified
when comparing the term and spot market. While younger, complex and more powerful
vessels have a higher probability of obtaining spot contracts, the term market is a two-tier
market where either a less powerful and less complex vessel, or a more powerful and more
complex vessel, is required to obtain contracts. Technical specifications are the most important
determinants, particularly in the spot market, while the age and size of the vessel is less
important.
This thesis provides a basis for further research, such as investigating the determinants
within vessel classes or studying the recent OSV market after the 2014 downturn into detail.
Furthermore, applying the logistic regression model to the drilling rig industry could prove to
be an interesting field of study.
The findings may be of interest for shipowners when deciding on fleet expansion or
renewal, and in the lay-up decision. In addition, investors and banks can use the findings to
evaluate which shipowning companies to invest in or grant loans to, by assessing a fleet’s
probability of obtaining contracts. Finally, the model could be used as a tool for shipbrokers
to evaluate which types of vessels that are most preferred in the North Sea.
This thesis supplements the limited existing literature on the North Sea offshore industry
as it searches for the determinants for obtaining a contract, rather than the freight rate
determinants which have been studied before. | nb_NO |
