LOSS PREVENTION BRIEFING FOR NORTH MEMBERS

SHIPS / APRIL 2012

Vessel Lay-Up
Contents

Introduction

Introduction .................................................................... 1

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.

Types of Lay-Up ............................................................. 1

Classification Society and Statutory Requirements ......... 2
North of England Requirements...................................... 2

The principal factors when choosing the type and location

of a lay-up, and its effect on P&I insurance, are considered
below.

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.
Disclaimer
The purpose of this publication is to provide a source of information which is additional to that
available to the maritime industry from regulatory, advisory, and consultative organisations. Whilst
care is taken to ensure the accuracy of any information made available no warranty of accuracy is
given and users of that information are to be responsible for satisfying themselves that the
information is relevant and suitable for the purposes to which it is applied. In no circumstances
whatsoever shall North be liable to any person whatsoever for any loss or damage whensoever or
howsoever arising out of or in connection with the supply (including negligent supply) or use of
information.
Unless the contrary is indicated, all articles are written with reference to English Law. However it
should be noted that the content of this publication does not constitute legal advice and should
not be construed as such. Members should contact North for specific advice on particular
matters

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.

North of England P&I Association The Quayside, Newcastle upon Tyne, NE1 3DU, UK
Telephone: +44 191 2325221 Facsimile: +44 191 261 0540 Email: loss.prevention@nepia.com www.nepia.com
Copyright North of England P&I Association Limited 2012

Vessel Lay-Up
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 vessels original equipment manufacturers should also
be consulted about critical equipment to ensure
appropriate comprehensive precautions are taken.

Classification Society and

Statutory Requirements
Classification societies
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 International Association of Classification Societies
(IACS) members provide annexes in their rules or other
guidelines covering classification society requirements,
recommendations and survey requirements for laid-up
vessels.

North of England
Requirements
Notification
Members are reminded of Norths requirements 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 North's survey requirements.
These requirements are set out in the annual Club Circular
which provides Members with an update on various issues
relating to renewal and the new policy year.

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

Hot lay-up

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 International Safety
Management (ISM) Code and International Ship and Port
Facility Security (ISPS) Code certificates. When the vessel
is reactivated, a 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.

The lay-up location should be in a safe port

approved by Norths 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 vessels 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
Norths 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.
All statutory and classification society requirements
should be complied with.

North of England P&I Association The Quayside, Newcastle upon Tyne, NE1 3DU, UK
Telephone: +44 191 2325221 Facsimile: +44 191 261 0540 Email: loss.prevention@nepia.com www.nepia.com
Copyright North of England P&I Association Limited 2012

Vessel Lay-Up
Safe port approval
As mentioned above, the lay-up location should be in a
safe port approved by Norths managers in order to qualify
for laid-up returns. The local requirements applicable to
specific lay-up locations and mooring arrangements are
normally determined by the relevant port authority and an
appropriate survey.
Members should be aware that a satisfactory survey of a
location may need to be provided before North can give
approval.
A suitable lay-up declaration from an IACS member
classification society or a satisfactory survey report from
an appropriate organisation or authority may be
acceptable in lieu of such survey.
A number of members of the International Association of
Classification Societies (IACS) and other organisations
offer commercial services to help owners with advice on
planning, preparation and carrying out of lay-ups. Some
surveying companies can also assist to assess the
suitability of lay-up locations.

North of England P&I Association The Quayside, Newcastle upon Tyne, NE1 3DU, UK
Telephone: +44 191 2325221 Facsimile: +44 191 261 0540 Email: loss.prevention@nepia.com www.nepia.com
Copyright North of England P&I Association Limited 2012