Month: July 2025

All aboard the LNG FSRU merry-go-round

No new FSRUs (Floating Storage and Regasification Units) have been delivered to the fleet since Nov-21 and the next newbuild is not scheduled for delivery until mid-2026, but conversions and relocations to Egypt are keeping the market busy.

The European scramble for LNG to replace lost pipeline gas from Russia following the invasion of Ukraine simultaneously rescued and set back the FSRU market. European markets quickly absorbed surplus FSRUs that had in many cases previously been trading as conventional LNGCs, but the hike in global gas prices stopped many potential projects elsewhere in the world dead in their tracks.

To read the whole of this MSI Foresight article please contact sales@msiltd.com

Brazil, Guyana shape shuttle tanker outlook

Brazil’s offshore oil production continues to underpin growth in the shuttle tanker segment, but the rise of Guyana as a new production hub is reshaping the market’s strategic outlook.

Speaking during the 1 July 2025 webinar Market dynamics and strategic partnerships in shuttle tanker operations, MSI director Tim Smith highlighted how fleet expansion, political risk and the geography of offshore development are influencing investment decisions. Read more at Riviera.

MSC’s longer service networks key to managing growing container capacity

Port limitations for bigger ships could present the biggest hurdle to strategy. Operators are handling a flood of new tonnage by making more calls at secondary ports with bigger ships, according to MSI. The charge is being led by MSC Mediterranean Shipping Company, which has increased average service lengths in the past year, the UK analyst notes. Read more at TradeWinds.

MSI Consultancy Case Study – Optimal offshore fleet and acquisition strategy

The client, a leading Middle East vessel operator, wished to enter the offshore marine services market, and required a detailed market assessment and business plan incorporating cashflow and capital requirement forecasts.

A key project element was optimising the fleet composition to marry asset flexibility with commercial performance.

MSI studied global and regional market dynamics for the OSV, subsea and marine construction industry, including offshore capital expenditure and supply and demand for rigs, subsea and OSVs under different scenarios.

We performed a fleet deployment analysis and comparison of assets deployed in different regions to assess redeployment opportunities.

We created an outlook for fleet utilisation and earnings, newbuilding and secondhand asset price forecasts, including an assessment of construction options in the Middle East compared to other regions.

MSI assessed the competitive landscape and profiled the company’s peers, including an assessment/shortlisting of potential acquisition targets. We also identified target customers and existing relationships with OSV providers.

Based on the above, MSI proposed the optimal fleet mix to deliver asset flexibility and financial returns. advising on potential availability of assets.

We created a business plan and financial model with simulation capability to assess alternative strategies – build-and-operate, buy-and-operate, charter-and-operate and the optimal owned/chartered mix.

MSI prepared a detailed market review which comprised a single report addressing all parts of the scope as described above. We highlighted the key risks for the project and presented the client management team with a clear recommendation of the asset types/specifications, including the number of assets and timing of investment required.

To learn how MSI’s Consultancy Services can help your business understand and profit from market dynamics in shipping, offshore and shipbuilding, please get in touch.

MSI Consultancy Case Study – Market Overview and Competitive Positioning

The client, a leading SOV owner requested a market study and analysis of the competitive positioning of its assets relative to the market, as well as an assessment of further vessel requirements both in terms of number of vessels and likely specification.

MSI provided forecasts for SOV demand, built on a granular database of current and upcoming offshore wind farm construction projects, coupled with key metrics such as their distance to coast.

We provided an assessment of the current SOV fleet and orderbook by vessel specification, coupled with the fleet of oil and gas walk-to-work vessels currently serving the offshore wind industry.

Also included were a forecast for future SOV contracting over the coming years, key shipyards for SOV construction.

We also modelled future requirements for SOVs, assessing size and type of SOVs which the industry will demand and studied their decarbonisation requirements, including the use of future fuels and hybrid power requirements.

Lastly, we produced a forecast of vessel earnings and utilisation based on supply/demand balances previously calculated as well as projected vessel newbuilding price and asset values for the SOV market.

The team prepared a market overview and outlook which was presented and refined with the SOV owner, also incorporating information received from a shipyard which was refining new SOV designs. Subsequently, the results were also presented to the SOV’s financiers to build a business case for future investments.

To learn how MSI’s Consultancy Services can help your business understand and profit from market dynamics in shipping, offshore and shipbuilding, please get in touch.

MSI Consultancy Case Study – Expansion and Diversification Opportunities

The client, a European-based technical and commercial shipmanager which had traditionally focussed on dry bulk carriers, required a market overview and outlook report to assess the feasibility of expanding services into the mid-size LPG carrier and VLGC markets.

MSI created an overview of global supply and demand of LPG by region, including a detailed breakdown of production source and demand drivers by region.

We generated a breakdown of seaborne trade by ship size and routes, with particular focus on mid-size LPG carriers and VLGCs. This included an analysis of seaborne trade in LPG, including the major drivers and current trends which may impact developments moving forwards.

MSI performed a comprehensive review of current LPG carrier market structure, including historical port calls, vessel deployment, and major operators. This included details of the current and future supply-side disposition in the mid-size LPG carrier and VLGC markets. This included analysis of newbuild contracting, deliveries, deletions and overall fleet growth.

Details around the operation of vessels in these market segments was studied, including vessel sizing, vessel design speeds versus operational speeds, fuel consumption and carrying capacities.

A brief overview of developments in engine and fuel types within the LPG carrier markets was also included.

MSI provided a forecast for the supply/demand balance for 23+ k CuM LPG carriers by size segment, with accompanying forecasts for earnings, newbuilding and second-hand asset prices, and OPEX.

MSI prepared a market report which addressed all parts of the scope as described above. The final deliverable was provided in MS PowerPoint with supporting data and graphs in MS Excel.

To learn how MSI’s Consultancy Services can help your business understand and profit from market dynamics in shipping, offshore and shipbuilding, please get in touch.

MSI Consultancy Case Study – Market Review for Investment Opportunity

A leading US-based alternative investment firm focused on performing and distressed credit-related investments was working on a project in the small, pressurised LPG carrier market and requested a study, including an overview of the current market and outlook for earnings and asset values, to help inform their potential investment.

MSI performed a detailed overview of the structure of the pressurised LPG carrier market, including regional analysis of vessel deployment, growth in inter-regional trading for larger vessel sizes, vessel ownership by size and region, and a description of the overlap between pressurised and semi-refrigerated LPG carriers.

Also included was a comprehensive assessment of the market’s demand-drivers. This included an overview of the global LPG and petrochemical gas markets (production, consumption and seaborne trade), as well as focusing in on key cargoes and regions.

Details on the current and future supply-side disposition in the pressurising LPG carrier market were provided. This included detailed analysis of the standard fleet metrics by ship type and size: contracting, deliveries and deletions.

We performed a review of recent investment trends in newbuild activity, owners’ preferences and accompanying SWOT analysis of major owners and provided a forecast supply/demand balance for sub-23 k CuM LPG carriers as well as forecast earnings and asset values for representative pressurised LPG carriers. MSI prepared a market report which addressed all parts of the scope as described above. The final deliverable was provided in MS PowerPoint with supporting data and graphs in MS Excel.

To learn how MSI’s Consultancy Services can help your business understand and profit from market dynamics in shipping, offshore and shipbuilding, please get in touch.

MSI Consultancy Case Study – Market Overview and Entry Strategy

The client, a sovereign wealth fund, wanted to evaluate the opportunity of supporting a new entrant into the LNG market. As part of their internal processes, it required a third-party market study on the LNG sector to help evaluate the project.

MSI provided a detailed overview of LNG market fundamentals. This included detailed analysis of the key supply, demand and vessel earnings drivers, based on MSI’s interactive Excel model.

We mapped the market landscape based on granular data for chartering arrangements for all LNG vessels and all liquefaction projects. This included comprehensive details of the market structure in terms of vessel owners, cargo interests and their chartering strategies.

We developed a detailed market entry strategy based on real experience from both a vessel owner and charterer perspective, with supporting financial modelling and analysis. We also assessed the potential financial returns of entering the LNG market.

MSI performed an assessment of optimal fleet size and composition by vessel specification and age, with particular focus on the various merits of entering the market via ordering newbuild vessels or purchasing second-hand assets.

We also identified potential charterers which might consider switching chartering strategies.

The MSI team delivered a phased series of reports and data/forecasts over the course of the project that addressed all elements of the project scope to enable the client to get comfortable with both the market and the specific investment opportunity under consideration.

Each phase of the project was bookended by a call with the client to present key findings and answer their questions. A final workshop was held at the end of the project to draw together major takeaways.

To learn how MSI’s Consultancy Services can help your business understand and profit from market dynamics in shipping, offshore and shipbuilding, please get in touch.

MSI Consultancy Case Study – Defining Shipping Strategy

The client was had an existing shipping arm which had been underinvested, was generating limited profits and was poorly aligned with the wider business.

MSI was contracted to generate a business strategy based on assessing an optimal fleet configuration based on carrying domestic cargoes.

MSI completed an accurate assessment of total cargoes being shipped by the company and worked closely with the commercial team of the company to understand the probability of converting current cargoes carried by third parties to captive cargoes.

Identification of potential trading opportunities to maximise vessel utilisation and revenue and calculation of optimal fleet size based on the agreed strategy.

We designed and developed a financial stabilisation mechanism to help smooth out the shipping business’ revenue stream and provided cashflow and valuation forecasts to inform the financial modelling of the shipping business.

The MSI team discussed potential joint venture partners with the company, based on their regional presence and trading profile and supported a well-known investment bank in designing the restructured entity.

We delivered a series of meetings with the company’s commercial teams responsible for marketing its exports to establish an accurate picture of the addressable market for the shipping company. This was ultimately translated that into actual vessel demand and recommended an optimal fleet mix, based on current trading patterns and cargo preferences.

We then designed a mechanism for stabilising the company’s revenues to make it more attractive to international partners, as well as lowering its financing costs.

This was presented to the leadership team of the shipping business as well as the senior executives of the company.

To learn how MSI’s Consultancy Services can help your business understand and profit from market dynamics in shipping, offshore and shipbuilding, please get in touch.