Part ofVessel OptimisationWebinar Week

Understanding vessel lay up options in the age of COVID-1915 May 2020 • 09:00-09:45 BST

12-15 May 2020

Presentation documents

Page 2 : Thomas Klenum, Liberian Registry (LISCR)Page 8: Tony Field, Lloyd’s RegisterPage 12: Carri Woodburn, Shipowners P&I Club

Vessel Optimisation Webinar Week

Understanding vessel lay up options in the age of COVID-19

Thomas KlenumSenior Vice President

15 May 2020

Lay up options in the age of COVID-19

2Lay up options in the age of COVID-19

Items to be addressed for a vessel to be placed in short term lay up:

Procedures for entry short term lay up Proposed manning levels Emergency response (fire, collisions, pollution, hurricanes, floods, etc.) Navigation watches (if at anchor) Security plan if other than the approved SSP Maintenance plan if other than that described in the Safety Management System Completing class surveys and audits Procedures for re-entry into service including training, ASI, and Audits to return

to normal service

Lay Up - Manning

3Lay up options in the age of COVID-19

Manning Short Term (< 1 year)Unofficial/Warm/Hot

Long TermOfficial/Cold

Minimum Safety Manning Certificate (MSMC)

Does not apply while a vessel is not underway, hence MSMC not required.

Manning We may issue authorization letter or dispensation for reduced manning provided we receive a risk assessment justifying the manning reduction.

The local authorities to be contacted and need to accept the crew reductions.

Manning at the discretion of the owners and operators with due regard for safety and security. No dispensation is required.

The vessel must be fully manned up to the requirements of the MSMC before it proceeds to sea.

Repatriation of crew Repatriation of crew considering COVID-19 transportation restrictions should be addressed

Lay Up - Surveys, Audits and Inspections

4Lay up options in the age of COVID-19

Surveys / Audits / Inspections

Short Term (< 1 year)Unofficial/Warm/Hot

Long TermOfficial/Cold

ISM, ISPS Audits Not apply to vessels that are laid up and not engaged in international trade.

Statutory Surveys Statutory surveys may be extended for short term lay up or suspended for long term, however;

If manned, fire fighting equipment must be maintained and serviced for regular operation.

Lifesaving equipment sufficient to the size of the crew on board must also be maintained for vessels laid up at anchor.

Annual Safety Inspections Will not be subject to Annual Safety Inspection until just before the vessel will commence trading again.

5Lay up options in the age of COVID-19

Thank you for your attention.

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Ship Lay-UpConsiderations

Tony FieldLloyd’s Register

Lay-up Considerations – Location

Safe- Anchorage / Berth- From Threats

Environmental Conditions- Seabed- Water especially if contamination

Both above can lead to hull fouling and steel degradation

Lay-up Requirements – Class & Statutory - Time Based

Lay-up status Period Reactivation Class Status

Hot Ship Up to 1 mth +/- 1 week Fully Classed

Hot ship Less than 1 year +/- 1 week Full trading certs.

Warm ship 1 to 12 months +/- 1 week Laid-up status

Cold Ship Less than 5 years +/- 3 weeks Laid-up status

Cols Ship More than 5 years +/- 3 months Laid-up status

Lay-up Requirements – Manning / Insurance

Minimum Manning

Reduced Manning

Fire, Flood, Mooring & Security Watch – Dead Ship

Insurance- P&I- Hull

Lay-up Requirements – What to do?

Understand exactly what the scenario is before any action

Mitigate all risks and challenges

LR Guidelines including detailed Checklists

Lay-up & Reactivation

Don’t forget the Flag Administration

UNDERSTANDING VESSEL LAYUP IN THE AGE OF COVID-19CARRI WOODBURN – HEAD OF LOSS PREVENTIONTHE SHIPOWNERS’ CLUB – 15/05/2020

New challenges

Adaptability

ResponsiveCrew welfare

UNDERSTANDING VESSEL LAYUP IN THE AGE OF COVID-19

From the P&I perspective

UNDERSTANDING VESSEL LAYUP IN THE AGE OF COVID-19

Record keeping Meeting operational and regulatory requirements

Layup reactivation survey

What steps should a prudent shipowner take when placing vessels into layup What steps should prudent shipowner take when bringing their vessels back into

service after a long period of layup Reactivation of vessels after a period of layup Vessel’s considered in layup and utilised for non standard operations If I place my vessel into layup, will the vessel attract a lower premium rating Claims during a period of layup An endurance guide for Members in tough market conditions Challenges in meeting operational and regulatory requirements Crew health and wellbeing

LOSS PREVENTION RESOURCES FOR LAYUP

THANK YOU FOR YOUR TIME