Lay-ups-a consequence of the financial crisis

2008-12-19

During the mayor lay-ups in the shipping industry in the 1970s and 1980s, DNV was instrumental setting the standard on safe and cost optimal lay-up and preservation of ships. Due to the financial crisis, this knowledge and experience are once again sought after.

DNV’s recommended procedures for lay-up, preservation and re-commissioning of ships are now being revised to include technical developments taken place over the past two to three decades.

Major parts of the global trade have slowed down over the past few weeks and months. Fewer goods are now being moved from manufacturers to consumers. Since some 80% of global transportation is by sea, the financial crisis has certainly affected the shipping industry.

Some 80 DNV-classed vessels are currently laid-up. Based on the increased number of inquires over the past few weeks, these figures are expected to grow to new heights in 2009.

“Shipping is definitely heading for rougher waters, and all those involved in this industry have to be prepared,” says Tor Svensen, the COO of DNV Maritime. “If shipowners and class societies act together, we will be able to maintain the ships in a safe and cost efficient way during lay-up and also reduce the recommissioning time and cost when the time comes for the ships to operate again.”

Svensen continues: “In the 1970s and 1980s, tankers were among the vessels that were most often seen laid-up in Norwegian fjords. Today’s financial situation has been more negative for bulk carriers and container ships than for other ship segments.”

DNV’s lay-up services advice shipowners in the various issues involved in laying up a vessel, such as hot or cold lay-up, location, mooring arrangements, class, insurance, brokers, manning, maintenance and inspection.

The revised procedures for lay-up will soon be released and available to shipowners as well as to charterers, insurance companies and authorities.

DNV