In the world of shipping, lay-up has been considered a negative term associated with bad market, lost income and unused equipment. Recent checking of world fleet shows about 600 vessels having officially declared lay-up status

However, the real number of the vessels being idle is much larger than this as many owners do not want to tie up with lay-up and hope the market will turn soon and the vessels can be mobilised quickly.

No matter whether the vessels being laid up with only watch men on board or idle with limited machinery running, saving the running cost is one of the ultimate goals. However, cost saving sometimes goes too far and leads to compromise what should have to be done. Short-cuts in planning and executing the lay-up have become a concern in the industry.

One of the issues we have seen when dealing with the lay-up preparation is the selection of the lay-up sites and design of a proper mooring arrangement. Shortage of lay-up site leads owners to lay up vessels at the site where adverse weather condition might happen. Leaving a vessel with only watch men onboard and without propulsion at a place where tropical storms appear introduces a high risk. A proper mooring arrangement should be specially designed to take the loads from the strong wind and wave. Other risks such as flooding or collision should also be carefully taken into consideration. Recently published article in Lloyd’s list (2009.08.13) indicates storm damage to the terminals worldwide costing global 72 bn USD in 2008. We have no reason to believe that cold laid up vessels will be safer without properly designed mooring system.

Another challenge we are facing now is the physical condition of the vessel entering the lay-up and how a sound preparation job is ensured. A vessel in laid up condition will in general have 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 getting flooded, since the sea water system usually need to be dried and might be kept open. Some ship owners employ external service providers to do the preparation of preservation and this leads to mis-operation of the system. Mooring system designed and approved might not be easy to put into operation and hence compromised. A major H&M insurer recently published their requirements indicating vessels properly laid-up will be entitled to a lay-up return, while properly in the sense are referring to a lay-up declaration issued by a class society of other organization approved by the insurance covering mooring arrangement, site approval and safety issues.

Preservation is also a very important issue and has not been properly handled and verified. Putting a metal object in a saline environmental for a period of time, corrosion is almost certain. The technology development occurred in the industry from mid 1980’s bring more and more electronic equipments on board. To protect such equipments in a laid up condition requires a dry environment and more tailored solutions. We have seen more concerns from stakeholders about the preservation and re-commissioning. Requirement on following maker recommendation or approved procedures are more and more on the agenda. “Failing to follow a proper preservation during the laid 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 period with laid up vessels. Compared with the old days of 1930-32, 1958-60, 1975 -78 and 1981-84, the period where vessels were laid up, we see focus in vessel lay-up is changing. One example is the focus on protection of 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 shading the sea view might already be the maximum tolerance for a local community. It will be expected that local authorities will take every possible precaution to avoid pollution from the vessels.

After all, laid-up vessels are a clear signal that transport is down, something we all wish to see a change rapidly. The key is when the change is coming, the ships shall be ready to perform their duties. This needs a proper handling of the lay-up as well as the re-commissioning.

DNV’s solutions:

DNV released Guideline of lay-up vessels on 1st of 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 assist owners in laying 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 lay-up, declarations, safe lay-up and supervision on preservation during the lay-up and re-commissioning. Also, in order to meet the industry focus on environment protection, DNV developed a service named “Clean Lay-up Declaration”. The service is based on DNV “Guideline on clean lay-up”, which is a supplementary document to the official Guideline. The Clean requirements are aiming to avoid pollution and minimize the impact to the local environment. Detail requirements are ranging from Emergency Response System to Garbage and Sewage control. Vessels in compliance with the requirements will receive from DNV a “Clean Lay-up Declaration”