In these times of volatile global markets, taking a ship out of service for one or several months may be the most profitable option until demand rises again. What was once a simple issue of finding a safe, shel- tered mooring is today much more complex – in line with modern ships and more elaborate regulations.
With over 13,000 vessels in class, DNV GL has the accumulated expertise and insights to advise ship- owners on how best to lay up their vessels – from container ships to bulk carriers, multi-purpose ves- sels and all other ship types.
Our newly revised class guideline for vessel lay-up informs you of our recommended practices, gained from experience during the major lay-ups in the ship- ping industry in the 1970s, 1980s and 2009.
It provides a systematic and cost-effective approach for preparing your vessel for lay-up and maintaining it in a safe and optimal condition during lay-up. An overview of the key points of the class guideline can be found on the following pages of this practical guide.
You will also find a practical checklist and a brief overview of services which DNV GL provides to support smooth lay-up processes. With about 4,500 highly skilled employees active in the mari- time segment, we are accessible worldwide 24/7. We enhance safety, quality, energy efficiency and environmental performance of the global ship- ping industry – across all vessel types and offshore structures.
When vessels become idle, further operation is usually evaluated on a cost–benefit basis considering different technical and economic conditions. The duration of lay-up is the first criteria to consider, as it serves as the basis for all other measures. There are two main lay-up options centred on duration:
HOT LAY-UP FOR A TYPICAL DURATION OF UP TO 12 MONTHS
In hot lay-up, the vessel is typically taken out of service for up to 12 months; however, exceptions have also been observed where a vessel is put in cold lay-up for up to 12 months. In hot lay-up, the machin- ery is kept in operation for the sake of fast re-commis- sioning. However, measures may be taken to optimize various operational costs, such as reducing manning to below trading limit.
This option is ideal for quick market recoveries, as the vessel is kept in a fully functional state and ready for employment. Hot lay-up is best for a duration of up to 12 months.
COLD LAY-UP FOR LONGER DURATIONS
In cold lay-up, the machinery is taken out of service and the vessel is kept “electrically dead”. Many vessels in cold lay-up use a deck generator or utilize shore power, which means even the emergency power is off. Only minimum manning covering fire, leakage, moorings and security watches is maintained. This option involves more complex measures compared to hot lay-up, such as steps to prevent corrosion and ensure protection, the draining of systems and pipes, and more. Cold lay-up is more common for a duration of more than 12 months, but the duration depends naturally on the owner’s needs.
Additional considerations for the choice of lay-up When choosing to take your ship out of service, it is important that you also take additional points into account, apart from duration:
- Operational cost savings
- Re-commissioning time and cost
- Next intended destination after re-commissioning (eg, normal trade, repair yard or scrap yard)
- Age of vessel and recycling value
LOCATION SELECTION AND CONSIDERATIONS
The location of where to lay up your vessel is essen- tial to ensure its safety and protection. Here are a few key points to consider:
- The lay-up site should be well sheltered from heavy wind, strong current and swell
- The seabed characteristics should be such as to provide adequate anchor holding power
- The seabed should be free from obstructions, wreckage or other projecting objects
- The water depth at the site should give sufficient clearance
- Mooring bollards of sufficient strength should be placed such to ensure proper lead
A comprehensive list of factors to consider before se- lecting the lay-up location can be found in the class guideline, page 15.
LOCATION ASSESSMENT
A location assessment might be beneficial to con- duct to evaluate the following factors, among others:
- Weather conditions
- Service and maintenance capability
- Port or local community requirements and limitations
Particularly for self-elevated units, a site-specific assessment is recommended. It should include a soil analysis, footprint analysis, leg penetration assess- ment and fixity assessment.
LOCAL REQUIREMENTS
The local requirements that apply to specific lay-up locations and mooring arrangements are normally determined by the relevant port authority and the appropriate salvage association. DNV GL may also have special recommendations for your specific location. Simply contact your local DNV GL office for more information.
EXTERNAL FORMAL OBLIGATIONS OF SHIPOWNERS
The shipowner has specific obligations towards stakeholders which need to be performed to ensure proper vessel lay-up.
CLASSIFICATION SOCIETY
The shipowner should notify DNV GL when the vessel is laid up or otherwise taken out of service for a period of more than three months. Notification to the local office, or written notification via the DATE portal, is sufficient to change the status of the vessel to “Laid-Up”, provided no items are overdue.
An annual survey of the laid-up vessel will be carried out at required intervals, the extent of which is reduced compared to the main class annual survey. It covers watertight integrity, the bilge system, fire hazards and equipment in use. Vessels manned during lay-up must comply with class requirements regarding fire safety. The requirements may be lim- ited to engine room areas and any high-risk area in use, assuming vessels are laid up in ballast condition and that the cargo area is clean and gas free.
Maintenance and preservation during the lay-up period is not a class requirement, but will affect the scope of the re-commissioning survey. If, during the lay-up period, the vessel has been preserved and maintained according to a programme accepted by DNV GL, the scope of the re-commissioning survey will be specially considered.
FLAG AUTHORITIES
The shipowner should notify the flag administration when the vessel is laid up or otherwise taken out of service for a prolonged period of time . Most flag ad- ministrations require an official notification with date and location of lay-up, so that the status of lay-up can be registered.
Flag administration requirements for lay-up vary. It is therefore important to consult the relevant flag administration and check relevant flag requirements prior to entering lay-up.
Examples of country-specific lay-up requirements:
- Hong Kong flag requires a copy of a lay-up survey report with the purpose of confirming that the quality of the vessel is maintained during the lay- up period.
- Liberian flag requires vessel operators to submit a lay-up plan which includes the lay-up procedures, proposed manning level, emergency response, etc. for short-term lay-up.
PORT AUTHORITIES
While the safe manning certificate sets the criteria for safe manning at all times for vessels in operation, there are no requirements which require minimum manning levels while vessels are within port limits, alongside or safely at anchor.
For hot lay-up, flag administrations may authorize the vessel to have reduced crews depending on the requirements of the local port authorities. Since requirements vary from port to port, it is recommended to forward a lay-up plan for evaluation and authoriza- tion which includes:
- Lay-up procedures
- Proposed manning level
- Emergency response (eg, fire, collisions, pollution, hurricanes, floods)
- Navigation watches (if at anchor)
- Security plan
- Completing class surveys and audits
- Procedures for re-commissioning
For cold lay-up, the vessel should have at least fire, leakage, mooring and security watch. It is recom- mended that the owner seek guidance from the vessel’s flag state, insurer and local port authorities to agree to the final manning levels on board during cold lay-up.
INSURANCE COMPANY
The relevant hull and machinery underwriter and P&I club should be consulted for guidance prior to removing the vessel from service.
The following key P&I requirements need to be considered:
- Protection and indemnity coverage by the individ- ual P&I clubs vary, but the shipowner may apply for lay-up return for a certain idling period, provided the vessel is declared safely laid-up
- If the vessel is laid-up for an extended period of time, most P&I clubs will reserve the right to inspect the condition of the vessel on re-commis- sioning
Please note that most port authorities will require a letter from local P&I club representatives to confirm that the laid-up vessel is covered for port risks.
VALIDITY OF ISM AND ISPS CERTIFICATES
The validity of ISM and ISPS certificates depends on whether the vessel has been put into hot lay-up or cold lay-up.
Lay-up of more than six months
ISM and ISPS certification will be withdrawn. When the vessel is later brought back into service, an interim verification audit will be required, with the vessel being treated as a new vessel to the company. Upon successful completion of the verification, interim ISM and ISPS certificates will be issued.
Lay-up of less than six months
If the lay-up period is less than six months, but the periodical audit window has expired during lay-up, the certificate will be considered invalid. The vessel will then be required to undergo interim verification upon re-commissioning.
- ISPS certificate: If the vessel has been laid up for less than six months and the periodical audit window has not expired, the certificate will still be
- ISM certificate: If the interruption period of the safety management system on board the ship is more than three months old, but less than six months old, the flag state administration may require an additional audit, in which case the flag state administration will issue the Upon satisfactory completion of the additional verification, the existing Safety Management Certificate shall be endorsed.
