Laying-up Ships / Rigs makes good business sense during tough times, especially at times of low demand for ocean freight and depressed rates. Not only does it allow ship/rig owners and operators to avoid non-profitable journeys and over supply, significant financial benefits can be gained by laying-up a vessel instead of scrapping it.
TMG Lay-Up Management has prepared the services as support for customers that opt to lay-up their vessels – whether it be for shorter or longer periods – and to provide a clear overview of the lay-up methods and services available.
CHOICE OF LAY-UP CONDITION
The choice of lay-up condition will generally be determined by a consideration of technical and commercial trade-offs (advantages and disadvantages) for the following factors:
• The time the vessel will be in lay-up condition;
• The time that will be needed to reactivate the vessel;
• The owners drive to reduce overhead running costs;
• The relocation of the vessel to its next intended destination; and
• The age of the vessel and the vessel market value
HOT VS COLD LAY UP MODE
HOT SHIP LAY-UP (24-hour reactivation)
This lay-up condition is suitable for up to one month out of service. In this condition, the vessel is held within Classification and Flag State requirements although the number of crew may be reduced in line with the certified minimum safety manning limits. The machinery will be kept operational but various economies may be made. The vessel will be located in an area close to the potential cargo trade routes.
HOT SHIP LAY-UP (one-week reactivation)
This lay-up condition is suitable for up to 12 months out of service. In this condition, the vessel manning is reduced below the trading limit and in agreement with the Flag State, the Classification Society and other local authorities and insurance companies. In this condition, most ports will only grant a temporary permit to lay-up a vessel in port, provided that Class and Flag surveys are carried out. Under these circumstances there may be local restrictions on vessel operations, eg. restrictions on the transfer oily bilge water.
COLD SHIP LAY-UP (three-week reactivation)
This lay-up condition is suitable for up to five years out of service. In this condition, the vessel manning is in line with emergency requirements to deal with fire, flooding, mooring and security watch. Cold ship lay-up locations are generally remote so access to the vessel is likely to be limited. On reactivation, the vessel may need to go directly to dry-dock before trading, depending on the extent of hull marine growth. It is important that all preparations during cold ship lay-up are well documented because the crew changes may be significant.
LONG-TERM LAY-UP (three-month reactivation)
This lay-up condition is suitable for over five years out of service. In this extended condition, the preparations will be comprehensive to the extent that original equipment manufacturers should be consulted for critical equipment. Furthermore, any remedial work required on reactivation is likely to be extensive and unpredictable, eg. renewal of alarm systems due to obsolescence. Several vessels will be laid-up in this condition side-by-side to minimise supervision costs.