How Chartering Works in the Offshore Industry: A Beginner’s Guide
Mar 28, 2025
Introduction: Understanding Offshore Vessel Chartering
In the offshore industry, chartering vessels is a crucial part of operations, enabling companies to transport crew, equipment, and supplies for oil & gas projects, offshore wind farms, and subsea operations. Unlike traditional shipping, offshore chartering involves specialized vessels such as Platform Supply Vessels (PSVs), Anchor Handling Tug Supply (AHTS) vessels, and Crew Transfer Vessels (CTVs).
For newcomers, the chartering process can seem complex, with different types of contracts, daily rates, risk-sharing mechanisms, and logistical considerations. This guide breaks down the essentials, explaining how offshore vessel chartering works and what key factors influence the process.
1. What is Offshore Vessel Chartering?
Chartering is essentially renting a vessel for a specific period or job. Unlike owning a fleet, chartering allows companies to access the right vessel at the right time without the long-term financial burden of ownership.
Chartering provides flexibility for offshore operations, ensuring that companies can quickly respond to project demands, weather conditions, and logistical needs without committing to permanent fleet investments.
2. The Two Main Types of Chartering: Time Charter vs. Spot Charter
Offshore vessel chartering falls into two primary categories:
🔹 Time Charter: Long-Term Flexibility
A time charter means renting a vessel for a fixed period (weeks, months, or years). The charterer pays a daily rate and is responsible for operational costs like fuel and crew wages.
✔ Best for: Long-term offshore projects requiring reliable vessel availability.
✔ Example: A company developing an offshore wind farm may time-charter a CTV for six months to transport technicians between turbines.
🔹 Spot Charter: Short-Term, On-Demand Solutions
A spot charter is a one-off agreement for a single voyage or short-term project, typically lasting a few days to a few weeks. Pricing depends on market demand and vessel availability.
✔ Best for: Companies needing a vessel on short notice or for a specific task.
✔ Example: A subsea contractor needs an AHTS vessel for a two-week anchor handling operation—they secure a spot charter instead of committing to a long-term agreement.
💡 Key Difference: Time charters offer stability, while spot charters provide flexibility. The choice depends on project duration, risk management, and budget considerations.
3. Understanding Day Rates & Cost Factors
Vessel chartering costs are usually based on day rates—the amount paid per day to use the vessel. These rates vary depending on:
✔ Vessel type – Larger, more specialized vessels (e.g., DP2 AHTS) cost more.
✔ Market conditions – High demand (e.g., peak oil drilling season) increases rates.
✔ Contract duration – Long-term charters often get better rates than short-term hires.
✔ Operational costs – Charterers may cover fuel, port fees, and maintenance.
🔹 Example: A PSV chartered for supply runs to an offshore rig may have a daily rate of $15,000, while a high-end AHTS for deepwater operations may cost $40,000 per day or more.
Knowing how day rates fluctuate allows charterers to plan budgets and negotiate better contracts.
4. Risk Management & Contract Considerations
Chartering offshore vessels involves risk-sharing between vessel owners and charterers. Common risk factors include:
✔ Weather delays – If rough seas delay operations, who covers the costs?
✔ Fuel costs – Some contracts specify whether the owner or charterer pays for fuel.
✔ Maintenance responsibilities – In a time charter, the charterer often pays for routine maintenance.
💡 Case Study:
A company time-charters a DP2 construction support vessel for 6 months. Midway, a mechanical failure delays operations for 2 weeks. If the contract states the owner is responsible for maintenance downtime, the charterer does not pay for the lost days.
✔ Lesson: A well-structured contract protects both parties from unexpected losses.
5. How Marine Logistics Shape the Chartering Process
Logistics play a key role in chartering decisions. The availability of port facilities, fuel bunkering stations, and weather conditions all affect vessel scheduling.
✔ Strategic Vessel Positioning:
Operators place vessels close to high-demand offshore zones (e.g., North Sea, Gulf of Mexico) to reduce mobilization costs.
✔ Port & Supply Chain Considerations:
Charterers must ensure port logistics align with vessel schedules to prevent costly delays.
💡 Example: A company chartering a vessel in West Africa may prefer a vessel already stationed nearby to avoid high mobilization fees.
6. The Future of Offshore Vessel Chartering
The offshore chartering industry is evolving, with new technologies improving efficiency:
📡 Digital Marketplaces – Platforms like Seavium allow owners and charterers to connect instantly, reducing negotiation times.
📊 AI-Powered Market Analysis – Predicts optimal chartering periods based on demand trends.
⚡ Sustainable Chartering – Hybrid & LNG-powered vessels are becoming more popular to meet emissions regulations.
Companies that leverage data-driven insights and digital solutions will gain a competitive edge in chartering efficiency.
Conclusion: Navigating Offshore Chartering with Confidence
For beginners, offshore vessel chartering may seem complex, but understanding contract types, costs, and logistics helps companies make informed decisions. Whether securing a vessel for a long-term offshore project or a short-term subsea mission, the right chartering strategy optimizes costs, reduces risks, and improves operational efficiency.
For those looking to simplify the vessel chartering process, platforms like Seavium offer real-time vessel listings, direct owner-charterer connections, and industry insights—helping businesses navigate offshore chartering with confidence.
🚢 Explore smarter vessel chartering solutions today → go.seavium.com
Introduction: Understanding Offshore Vessel Chartering
In the offshore industry, chartering vessels is a crucial part of operations, enabling companies to transport crew, equipment, and supplies for oil & gas projects, offshore wind farms, and subsea operations. Unlike traditional shipping, offshore chartering involves specialized vessels such as Platform Supply Vessels (PSVs), Anchor Handling Tug Supply (AHTS) vessels, and Crew Transfer Vessels (CTVs).
For newcomers, the chartering process can seem complex, with different types of contracts, daily rates, risk-sharing mechanisms, and logistical considerations. This guide breaks down the essentials, explaining how offshore vessel chartering works and what key factors influence the process.
1. What is Offshore Vessel Chartering?
Chartering is essentially renting a vessel for a specific period or job. Unlike owning a fleet, chartering allows companies to access the right vessel at the right time without the long-term financial burden of ownership.
Chartering provides flexibility for offshore operations, ensuring that companies can quickly respond to project demands, weather conditions, and logistical needs without committing to permanent fleet investments.
2. The Two Main Types of Chartering: Time Charter vs. Spot Charter
Offshore vessel chartering falls into two primary categories:
🔹 Time Charter: Long-Term Flexibility
A time charter means renting a vessel for a fixed period (weeks, months, or years). The charterer pays a daily rate and is responsible for operational costs like fuel and crew wages.
✔ Best for: Long-term offshore projects requiring reliable vessel availability.
✔ Example: A company developing an offshore wind farm may time-charter a CTV for six months to transport technicians between turbines.
🔹 Spot Charter: Short-Term, On-Demand Solutions
A spot charter is a one-off agreement for a single voyage or short-term project, typically lasting a few days to a few weeks. Pricing depends on market demand and vessel availability.
✔ Best for: Companies needing a vessel on short notice or for a specific task.
✔ Example: A subsea contractor needs an AHTS vessel for a two-week anchor handling operation—they secure a spot charter instead of committing to a long-term agreement.
💡 Key Difference: Time charters offer stability, while spot charters provide flexibility. The choice depends on project duration, risk management, and budget considerations.
3. Understanding Day Rates & Cost Factors
Vessel chartering costs are usually based on day rates—the amount paid per day to use the vessel. These rates vary depending on:
✔ Vessel type – Larger, more specialized vessels (e.g., DP2 AHTS) cost more.
✔ Market conditions – High demand (e.g., peak oil drilling season) increases rates.
✔ Contract duration – Long-term charters often get better rates than short-term hires.
✔ Operational costs – Charterers may cover fuel, port fees, and maintenance.
🔹 Example: A PSV chartered for supply runs to an offshore rig may have a daily rate of $15,000, while a high-end AHTS for deepwater operations may cost $40,000 per day or more.
Knowing how day rates fluctuate allows charterers to plan budgets and negotiate better contracts.
4. Risk Management & Contract Considerations
Chartering offshore vessels involves risk-sharing between vessel owners and charterers. Common risk factors include:
✔ Weather delays – If rough seas delay operations, who covers the costs?
✔ Fuel costs – Some contracts specify whether the owner or charterer pays for fuel.
✔ Maintenance responsibilities – In a time charter, the charterer often pays for routine maintenance.
💡 Case Study:
A company time-charters a DP2 construction support vessel for 6 months. Midway, a mechanical failure delays operations for 2 weeks. If the contract states the owner is responsible for maintenance downtime, the charterer does not pay for the lost days.
✔ Lesson: A well-structured contract protects both parties from unexpected losses.
5. How Marine Logistics Shape the Chartering Process
Logistics play a key role in chartering decisions. The availability of port facilities, fuel bunkering stations, and weather conditions all affect vessel scheduling.
✔ Strategic Vessel Positioning:
Operators place vessels close to high-demand offshore zones (e.g., North Sea, Gulf of Mexico) to reduce mobilization costs.
✔ Port & Supply Chain Considerations:
Charterers must ensure port logistics align with vessel schedules to prevent costly delays.
💡 Example: A company chartering a vessel in West Africa may prefer a vessel already stationed nearby to avoid high mobilization fees.
6. The Future of Offshore Vessel Chartering
The offshore chartering industry is evolving, with new technologies improving efficiency:
📡 Digital Marketplaces – Platforms like Seavium allow owners and charterers to connect instantly, reducing negotiation times.
📊 AI-Powered Market Analysis – Predicts optimal chartering periods based on demand trends.
⚡ Sustainable Chartering – Hybrid & LNG-powered vessels are becoming more popular to meet emissions regulations.
Companies that leverage data-driven insights and digital solutions will gain a competitive edge in chartering efficiency.
Conclusion: Navigating Offshore Chartering with Confidence
For beginners, offshore vessel chartering may seem complex, but understanding contract types, costs, and logistics helps companies make informed decisions. Whether securing a vessel for a long-term offshore project or a short-term subsea mission, the right chartering strategy optimizes costs, reduces risks, and improves operational efficiency.
For those looking to simplify the vessel chartering process, platforms like Seavium offer real-time vessel listings, direct owner-charterer connections, and industry insights—helping businesses navigate offshore chartering with confidence.
🚢 Explore smarter vessel chartering solutions today → go.seavium.com