Both the ABS Offshore Support Vessel Forum and the WBS were very well attended. In my opinion, this year’s edition of the WBS was the first that felt like it had more attendees than any show since the last pre-COVID WBS. The number of attendees, exhibitors, and related events surrounding the WBS was impressive, signaling continued confidence in both the broader work boat and OSV industries. The consensus among the attendees I spoke with was very positive. Specifically regarding the domestic OSV industry, there is optimism that current activity levels and vessel demand will continue. It was also noteworthy that no stakeholders in the U.S. Gulf of America anticipate new vessel construction anytime soon, although there are rumors.

It was not surprising that much of the content at the ABS OSV Forum focused on extending the life cycle of the existing OSV fleet while identifying opportunities to improve efficiency. It is becoming increasingly clear that significant capital expenditures will be required for the existing fleet, and charter rates will need to increase to offset those investments. At some point, charter rates may rise to a level that justifies new construction, but that threshold still appears to be a long way off.

Overall, the Gulf of America OSV industry is on solid footing, and JOO remains very well positioned in the market.