VESSEL LAY-UP

Loss preven

SHIPS

Vessel Lay-Up

Contents

Introduction...................................................................................................................................................... 2  

Types of Lay-up ............................................................................................................................................... 2  

Classification and Statutory Requirements.................................................................................................. 2  

North of England Requirements .................................................................................................................... 3  

Acknowledgements ......................................................................................................................................... 4  

Appendix – Lloyd’s Register - A Guide to Laying Up Ships ....................................................................... 5  

North of England P&I Associati

Vessel Lay-Up

Introduction

A vessel may be considered laid-up when it ceases trading and is put out of commission for a period of time.

The vessel may be moored alongside, be at anchor or at a buoy.

The principal factors when choosing the type and location of a lay-up, and its effect on P&I insurance, are

considered below.

Comprehensive advice on laying-up vessels is contained in a guide by Lloyd’s Register – A Guide to Laying

Up Ships – which is attached as an appendix to this briefing.

Types of Lay-up

Hot Lay-up

Hot lay-up would be suitable for a vessel out of service for a shorter term. The vessel is moored in a safe

port location and is held within Flag State and classification society requirements. Machinery will be kept

operational and the vessel will probably be laid-up near potential cargo trade routes. Manning levels will be

reduced with Flag State, classification society and local authorities' permission to below minimum manning

levels.

A vessel with manning levels at or above statutory minimum manning requirements would be considered as

“idling” rather than laid-up.

Cold Lay-up

Cold type of lay-up would be suitable for a vessel out of service for a longer period. The vessel is moored in

a safe port location and all systems are shut down. Vessel manning is in line with emergency requirements

to deal with fire, flooding, mooring and security watch, as well as providing maintenance to prevent

deterioration of the vessels machinery, equipment and structure. On reactivation the vessel may need to go

to dry-dock before resuming trading.

All preparations during the lay-up should be well documented as it is very likely that the reactivation crew will

be different from the lay-up crew.

The vessel’s original equipment manufacturers should also be consulted about critical equipment to ensure

appropriate comprehensive precautions are taken.

Classification and Statutory Requirements

Members should check with their individual classification society for particular requirements but, in general

terms, when a vessel is laid-up, as long as owners notify the classification society and submit a lay-up

maintenance plan for their approval, class will be maintained even when annual survey windows have

passed, provided all outstanding surveys and other classification society requirements are complied with

during the reactivation process prior to recommencement of trading.

Many IACS classification society members provide annexes in their rules or other guidelines covering Class

requirements, recommendations and survey requirements for laid-up vessels. The guide by Lloyd’s Register

– A Guide to Laying Up Ships – is attached as an appendix to this briefing.

rth of England P&I Association, The Quayside, Newcastle upon Tyne, NE1 3DU, UK

Tel: +44 191 232 5221 Fax: +44 191 261 0540 Email: loss.prevention@nepia.com Website: www.nepia.com

 

ISM and ISPS Certification

Depending on the period of lay-up, Flag States or recognised organisations acting on behalf of Flag States

may suspend or withdraw the ISM and ISPS certificates. When the vessel is reactivated, an interim survey

will be required before the certificates can be re-issued.

Reactivation

Flag State and classification societies will require any outstanding or overdue routine surveys to be

satisfactorily completed and may additionally require a survey of certain items prior to resumption of trading

to confirm that the vessel has been successfully reactivated and that equipment is working satisfactorily.

ISM and ISPS certificates will need to be restored or renewed as appropriate which will require relevant

surveys / audits.

North of England Requirements

Notification

Members are reminded of the Association's requirements (outlined in the Association’s Circular dated 12

February 2009) in respect of any entitlement to laid-up returns, and in particular, that vessels should be laid

up in a safe port approved by the Managers.

In addition, the Managers must be advised in advance of any vessel preparing to leave a period of lay-up as

the vessel may be required to undergo survey in accordance with the Association's survey requirements.

Laid-up returns

In order to qualify for laid-up returns, the lay-up must meet the following criteria:

Hot lay-up

The lay-up location should be in a safe port approved by the Association’s managers

The lay-up period should be for a minimum of 30 days

There should be no cargo on board

The crew level should be below that specified by the vessel’s Safe Manning Certificate but above the

minimum needed for maintenance, safety and security.

All statutory and classification society requirements should be complied with.

Cold Lay-up

The lay-up location should be in a safe port approved by the Association’s managers

The lay-up period should be for a minimum of 30 days

There should be no cargo on board

There should be no crew on board, or only the minimum number required for maintenance, safety and

security.

North of England P&I Association, The Quayside, Newcastle upon Tyne, NE1 3DU, UK

Tel: +44 191 232 5221 Fax: +44 191 261 0540 Email: loss.prevention@nepia.com Website: www.nepia.com