In the world of shipping, lay-up has been considered a negative term associated with a bad market, loss of income and unused equipment. A recent check of the world fleet shows about 900 vessels with an officially declared lay-up status. However, the real number of vessels that are idle is much larger than this as many owners do not want to be tied by lay-ups and want to be able to mobilise their vessels quickly when the market turns around soon, as they hope it will.
Irrespective of whether the vessels are laid up with only watchmen on board or are idle with limited machinery running, saving running costs is one of the ultimate goals. However, cost savings sometimes go too far and lead to a compromise on what should be done. Short-cuts taken in the planning and execution of lay-ups have become a matter of concern to the industry.
One of the issues we have seen when dealing with lay-up preparations is the selection of the lay-up site and design of a proper mooring arrangement. The short-age of lay-up sites leads owners to lay up vessels at sites where adverse weather conditions might occur. Leaving a vessel with only watchmen on board and without propulsion at a place where tropical storms occur is very risky. A proper mooring arrangement should be specially designed to take the strain caused by strong winds and waves. Other risks, such as flooding or collision, should also be carefully taken into consideration. A re-cently published article in Lloyd’s List (2009.08.13) indicates that storm damage to terminals worldwide cost USD 72 bn in 2008. We have no reason to believe that cold laid-up vessels are safer without a properly designed mooring system.
Another challenge we are currently facing is the physical condition of the vessel to be laid up and how to ensure sound preparations. A vessel in laid-up condition will generally be at less risk than while it is sailing. However, certain risks will remain or might be even higher. For example, a cold laid-up vessel has more chance of being flooded, since the sea water system usually needs to be dried and might be kept open. Some ship owners employ external service providers to prepare the ship preservation and this leads to misoperation of the system. A designed and approved mooring system may not be easy to put into operation and hence be compromised. A major H&M insurer recently published its requirements which indicate that properly laid-up vessels will be entitled to a lay-up return. Properly in this sense refers to a lay-up declaration, issued by a class society or other organisation ap-proved by the insurance company, that covers the mooring arrangement, site approval and safety issues.
Preservation is also a very important issue and has not been properly handled and verified. If a metal object is put into a saline environment for a period of time, corrosion is almost certain. The technology development in the industry started in the mid-1980s and brought more and more electronic equipment on board. To protect such equipment in a laid-up condition requires a dry environment and more tailored solutions. Stakeholders have become more concerned about the preservation and re-commissioning issues. Requirements to follow the maker’s recommendations or approved procedures are more and more on the agenda. “Failing to follow proper preservation procedures during the lay-up period can be considered a breach of the safety regulations,” says a major H&M insurer.
This is not the first time the industry has experienced a period of laid-up vessels. Compared with 1930–32, 1958–60, 1975–78 and 1981–84, the previous periods when many vessels were laid up, we see that the focus in vessel lay-up is changing. One example of this is the focus on protecting the natural environment of the lay-up location, an issue that was hardly mentioned before. To have numerous giant vessels in front of a beach and blocking the sea view might be the maximum that will be tolerated by a local community. Local authorities will be expected to take every possible precaution to avoid pollution from the vessels.
Laid-up vessels are a clear signal that the need for transport has fallen, something we all wish to see change rapidly. What is important is that when the change comes, the ships are ready to perform their duties. This requires both the lay-up and re-commissioning to be handled properly.
DNV’s solutions:
DNV released its Guideline for the Lay-up of Ships on 1 April 2009. The Guideline provides a systematic and cost-effective approach to preparing the ship for lay-up and maintaining it in a safe and cost-effective condition during lay-up. An overview of relevant lay-up considerations, such as a ‘hot’ or ‘cold’ lay-up, the lay-up site, lay-up period, re-commissioning time, class, insurance and flag requirements, is given as a means for the ship owner to make the best possible choices considering the unpleasant alternatives. Practical procedures for re-commissioning the ship are also stated.
In order to handle the increasing amount of lay-up inquiries, DNV has established advisory services to help owners lay up their ships in a safe and cost-efficient way. These services range from advice on the lay-up site, mooring arrangement and lay-up plans to advice on the lay-up, declarations, safe lay-up and supervision of preservation during the lay-up and re-commissioning.
Also, in order to meet the industry focus on environmental protection, DNV has developed a service called Clean Lay-up Declaration. This service is based on DNV’s Guideline for Clean Lay-up, which is a supplementary document to the official Guideline. The Clean requirements are intended to avoid pollution and minimise the impact on the local environment. The detailed requirements range from the Emergency Response System to Garbage and Sewage control. Vessels in compliance with the requirements will receive a Clean Lay-up Declaration from DNV.