Vessel lay-up requirements in Brazil

On 30 October 2017, the Directorate of Ports and Coasts in Brazil (DPC) issued amendments regarding vessels laying‐up in Brazilian ports and terminals and provided the requirements for the concession of the Laid‐ Up Vessel Certificate.

Because 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 condition.

For this reason, DPC North’s correspondent in Brazil, Proinde P&I, have issued a circular regarding lay-up of vessels in Brazilian ports.

The circular includes the following provisions:

    Brazilian vessels and offshore support vessels, as well as foreign‐flagged offshore support vessels only, can now be laid‐up in Brazilian ports and terminals,

    For foreign offshore support vessels, the DPC will analyse the situation of the chartering company in Brazil and the condition of the vessel before authorising the lay‐up,

    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 every six months until the vessel is reactivated to return to regular operation.  

Additionally, DPC informs that the application or lay‐up can be made by the vessel’s owners accompanied by the following documents:

All vessels

    Safe manning certificate

    Crew list

    Contract between the vessel’s interests and the port facility or terminal where the vessel will remain laid‐up

    Evidence of P&I covers for wreck removal, environmental damage and civil liabilities

    Other documents the maritime authority deems necessary

Foreign-flagged offshore support vessels

    Copy of the CNPJ (National Registry of Corporate Taxpayers) of the applicants

    Copy of the bylaws or articles of incorporation of the applicants  

    Charter party between owners and Brazilian charterers

    Vessel’s certificate of registry

    Vessel’s class certificates

    Approval from vessel’s Flag Administration  

    Class report for lay‐up

    Letter of undertaking issued by the P&I club or first‐class bank guarantee

DPC also reminds that the granting of the Laid‐Up Certificate by the maritime authority does not exempt owners and charterers from having to comply with statutes and regulations of other stakeholders.