Requirements for vessel lay-up in Brazil

06/11/2017 - 3:47 | Author: Proinde

Until recently, there were no specific provisions in the Maritime Authority Rules regulating vessel’s lay-up in Brazil.

In the wake of the economic crisis affecting the naval and offshore industries, vessel operators found themselves without contracts and no economic alternatives to save costs on the running and maintenance of vessels while awaiting improvements in market conditions.

To bring an alternative to this situation, on 30 October 2017, the Brazilian Navy´s Directorate of Ports and Coasts (DPC) issued Ordinances 306 and 307/2017 that amend the ‘Rules for the Transit and Permanence of Vessels in Brazilian Jurisdictional Waters – NORMAM-08/DPC’, and the ‘Rules for the Operation of Foreign Vessels in Brazilian Jurisdictional Waters – NORMAM-04/DPC’ to authorise Brazilian vessels and offshore support vessels, as well as foreign-flagged offshore support vessels only, to enter lay-up in Brazilian ports and terminals.

Foreign offshore support vessels will be subject to DPC’s analysis of the situation of the charterers in Brazil and will also be required to present a P&I Club letter of undertaking, or a first-class bank guarantee, to cover wreck removal, environmental damage and civil liabilities for the entire lay-up period.

All vessels in hot or cold lay-up must remain moored alongside an authorised wharf or terminal during the entire lay-up period and, in no case, lay-up offshore or at anchorage will be permitted. Inspectors from the local Port Captaincy will conduct periodical inspections, for the account of vessel’s interests, every six months until the vessel is reactivated to return to regular operation.

Download the complete circular.

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