shippingposition
  • Home
  • News
  • Editorial
    • Vox Pop
  • Maritime safety
  • Oil and Gas
  • Personality
  • Health
No Result
View All Result
shippingposition

Home » Ship Owners Look To Lay-Up As They Navigate COVID-19 Trade Declines

Ship Owners Look To Lay-Up As They Navigate COVID-19 Trade Declines

by Joshua
May 14, 2020
in Uncategorized

For the first time in a decade, large numbers of ships are heading for lay-up as the COVID-19 pandemic crushes demand for consumer goods and widespread travel restrictions temporarily end passenger cruising.

Cargoes carried on containerships are set to fall by 10 percent this year, the largest decline in this sector’s 64-year history. Owners of these vessel types, as well as passenger and cruise ships, are among the first in the maritime sector deciding to lay-up and are becoming reacquainted with regulatory and technical measures to prepare and protect vessels whilst out of service.

This volume of lay-up has not been seen since the global financial crisis of 2008 and 2009. Up to 15 percent of the global fleet of bulk carriers and containerships were removed from trading as shipments of dry bulk commodities like iron ore and coal and consumer goods contracted.

This time it’s different. Cruise and short-sea shipping are the first, highest profile casualties with industry leaders publicly stating in April that prolonged lay-ups were being considered following the suspension of cruise services.

The smaller, passenger ferry and ro-ro sector throughout northwest Europe and the Mediterranean is not immune either. There are widespread service reductions and staff retrenchments particularly in Scandinavian countries and northwest Europe. Companies unable to profitably operate their vessel services on a freight-only basis are exploring lay-up options as their vessels remain idle at ports.

The global containership fleet faces similar turbulence with container lines forecast to post billions in collective losses this year. Hundreds of scheduled services were cancelled over March and April, with more set for May. There are reports that some 10 percent of the fleet is already idle.

In Norway, where many of the North Sea’s offshore services, deep sea and rig companies are based, turnover declined by 25 percent by mid-April, according to the Norwegian Shipowners Association. Passenger ship sector turnover was 79 percent lower. Lay-up numbers were anticipated to triple by the year’s end, based on a member survey.

For now, most containership and passenger vessel owners are looking at hot or warm lay-up options, that allow a vessel to be quickly reactivated and returned to service within 24 hours to a week. These restrict ships to lay-up for periods from up to one month to a maximum of a year.

Cold or long-term lay-up applies to vessels spending up to five years out of service, which reduces daily running costs to a bare minimum. The duration of lay-up is a crucial decision and one that is particularly difficult to make in the midst of a pandemic. Yet, when the vessel can be expected to return to service dictates the scale of savings to be made.

Anecdotal reports suggest anchorages provided by specialist lay-up companies are already filling up or booked out. The warmer waters off Malaysia and Indonesia are popular anchorage areas, while in northwest Europe, some ports began have begun advertising availability to host smaller passenger ferry and roll-on roll-off ships, aside from traditional locations in Norway.

Most requests are reportedly for warm lay-ups, which allow for vessels to rapidly return to trading as and when lockdown restrictions ease, which will restart global economic engines and see passengers and consumer goods moving again. Larger passenger ships face stronger headwinds after widespread publicity about COVID-19 cases during 2020’s first quarter and are expected to remain out of service for longer periods.

Class societies alongside the flag state, port authorities and insurers are all involved in lay-up preparations.

For hot lay-ups that allow 24-hour reactivation, ports can grant a temporary permit for ships to moor provided that class and flag surveys are carried out, according to Lloyd’s Register Marine’s guide to ship lay-up. Ships remain within normal class and flag state requirements, and the inspection regime is unchanged, although crew numbers can be reduced if they stay within certified minimum limits. Ships can remain laid up typically for one month under these conditions. For hot lay-up with one-week reactivation which normally allows a 12-month maximum lay-up, crewing can be below numbers needed to trade if class and flag state agree. Some vessel operations may be restricted.

Warm lay-up means a ship’s designation is usually officially changed to ‘laid up’ by classification societies. The “Laid Up” notation means that owners have requested that class continue while the vessel is out of service. To keep this status, if the lay-up extends beyond on the ship’s annual survey, surveyors must attend to examine hull and machinery before it expires. If a Special Survey is due (a survey done every five years), an underwater examination also has to take place. There’s another option to have the vessel de-classed for inspections and maintain a “Laid Up Surveys Overdue’ notation.

If vessels are in warm lay-up for up to six months, the International Safety Management Code (ISM) and International Ship and Port Facilities Security Code (ISPS) certificates are suspended. These codes, included in international maritime conventions, set minimum standards for the safe management and operation of ships and port and security requirements.

Certification is withdrawn if lay-up extends longer than six months. A reactivation audit is required for ISM and ISPS if the vessel is reactivated within six months, and an interim survey required for any longer.

Risk assessment for planned manning levels, maintenance of general machinery, safety equipment, systems and alarms are among a long checklist of steps needed to protect the vessel during layup. Steps to protect against hull fouling and corrosion are also necessary.

Whether lay-ups are greater than 2009 when numbers surpassed 1,000, is uncertain; many owners don’t immediately confirm the status of their ships. But already there are indications that the COVID-19 presents greater challenges for seaborne trade, suggesting that lay-ups will become a feature dominating shipping over 2020.


Related Posts

Reps Begin Plans To Revive Baro Inland Port

Reps Begin Plans To Revive Baro Inland Port

July 3, 2025
Despite ₦5.17trn Surplus, Dollar Dominates Nigeria-China Trade As Naira-Yuan Swap Struggles

Despite ₦5.17trn Surplus, Dollar Dominates Nigeria-China Trade As Naira-Yuan Swap Struggles

June 30, 2025
Meningitis: Death Toll In Kebbi Hits 56 – Govt 

Meningitis: Death Toll In Kebbi Hits 56 – Govt 

March 24, 2025
Navy Rescues 8 Police Officers,1 Civilian From Boat Accident In Bayelsa

Navy Rescues 8 Police Officers,1 Civilian From Boat Accident In Bayelsa

January 8, 2025

Discussion about this post

Latest News

Apapa Customs Seals Three Bonded Terminals, Seizes 27 Containers in Anti-Smuggling Crackdown

Apapa Customs Seals Three Bonded Terminals, Seizes 27 Containers in Anti-Smuggling Crackdown

July 3, 2025

Clarion Shipping Unveils Nigeria’s First Indigenous Container Vessel, Targets West African, China-Nigeria Trade Routes

Customs Intercepts 111 African Parrots, Illicit Drugs In Adamawa

Oyetola Inaugurates NIWA Governing Board, Charges Members on Discipline, Development

WCO: Centre Says Adeniyi’s Leadership‘ll Deepen Nigeria Customs’ Global Collaboration

WCO: FRSC Corps Marshal Congratulates Comptroller General Of Customs On Election As Chairperson

NESREA Hails Customs Boss On Election As WCO Council Chairperson

Reps Begin Plans To Revive Baro Inland Port

BREAKING: Oyetola Inaugurates NIMASA Governing Board, Charges Members on Strategic Oversight

Apapa Customs Boss Breaks Bottlenecks: ANLCA Chairman Hails Reduction of Checkpoints, Demands More Reforms

Succession Planning: Shippers’ Council Launches Training Programme for Mid-Level Officers

SEREC Outlines Key Benefits, Strategic Advice for CGC Adeniyi on His Appointment as WCO Council Chair

kindly like our Facebook page

Health

Contraceptive Pills Can’t Cause Cervical Cancer – Expert
Health

Contraceptive Pills Can’t Cause Cervical Cancer – Expert

June 30, 2025

Mrs Roseline Akinlabi, Adolescent and Youth Sexual Reproductive Health Desk Officer, Osun Primary Healthcare Board, says contraceptive pills cannot cause...

ONIONS: The Good Old Healing Vegetable

KNOW YOUR BODY PARTS: The Liver The liver is a vital organ located in the right upper abdomen, playing a crucial role in metabolism, detoxification, and digestion. It’s the largest solid organ in the body and is responsible for filtering blood, maintaining blood sugar levels, regulating clotting, and synthesizing essential proteins. The liver also stores energy, removes toxins, and produces bile, which aids in digestion Liver functions: · Metabolism and Detoxification: The liver processes nutrients from the blood, breaks down and balances them, and creates essential substances for the body. It detoxifies harmful substances like drugs and alcohol, converting them into less toxic forms for excretion. The liver plays a role in the metabolism of proteins, carbohydrates, and fats. It stores glycogen (a form of glucose) and vitamins, releasing them when the body needs them. · Digestion: The liver produces bile, which is stored in the gallbladder and released into the small intestine to help digest fats. Bile also helps in the absorption of fat-soluble vitamins. · Blood Regulation: The liver regulates blood sugar levels by storing and releasing glucose. It synthesizes clotting factors, which are essential for blood clotting. It removes old red blood cells and processes bilirubin, a byproduct of red blood cell breakdown. · Other Functions: The liver plays a role in immunity, helping to fight off infections. It produces proteins that are involved in the immune response. The liver also stores iron and other essential minerals. Frequently Asked Questions About The Liver · What are the first signs of a bad liver? The initial signs of liver problems can be vague and subtle, often including fatigue, nausea, and loss of appetite. As the liver’s condition worsens, more specific symptoms may emerge, such as jaundice (yellowing of the skin and eyes), itchy skin, dark urine, and light-colored stools. Abdominal pain, especially in the upper right quadrant, can also indicate liver issues. · Where do you feel liver pain? Liver pain is typically felt in the upper right abdomen, just beneath the rib cage. It can manifest as a dull, throbbing pain, a stabbing sensation, or a general feeling of discomfort in that area. In some cases, liver pain might be felt as an ache in the right shoulder or back. · What does liver pain feel like? How liver pain feels can vary from person to person, depending on the cause. However, most people often develop one or more of the following symptoms: Dull, persistent aches in the upper abdomen A feeling of fullness or bloating Sharp, stabbing pains that come and go Tenderness when the upper abdomen is touched · What is the best way to cleanse your liver? If you haven’t been working out, start indulging in a regular exercise regime to allow the toxins to come out of your body. Yoga, going running, hitting the gym, or a simple sauna session can also prove effective. If you want a natural liver cleanse, sweating is the way to go. · How to know if the liver is swollen? What are the symptoms of an enlarged liver? You likely won’t notice an enlarged liver on your own. In some severe cases, you might notice a feeling of bloating or fullness in your belly or an ache in your upper right abdomen. · What is the best drink to flush your liver? Many citrus fruits, including lemon, can be added to water to help stimulate and flush out the liver. Lemons are high in nutrients like vitamin C and antioxidants

June 16, 2025
ONIONS: The Good Old Healing Vegetable

ONIONS: The Good Old Healing Vegetable

June 16, 2025
Why Prostate Disorder Cases Are Increasing Among Nigerian Men – Experts

Why Prostate Disorder Cases Are Increasing Among Nigerian Men – Experts

June 1, 2025
20m Nigerians Live With Mental Health Issues, Says WHO

20m Nigerians Live With Mental Health Issues, Says WHO

June 1, 2025
Health Facts You Didn’t Know

How Your Habit Affects Fertility

May 19, 2025
Fruits For Raining Season

Fruits For Raining Season

May 19, 2025
See Mental Illness Like Other Treatable Diseases – Says Suicide Survivor

Health Facts You Didn’t Know

May 19, 2025
Alligator Pepper: Benefits, FAQ, Side Effects, & Warning

Alligator Pepper: Benefits, FAQ, Side Effects, & Warning

April 28, 2025
Water And Health: The Relationship That Helps Life

Water And Health: The Relationship That Helps Life

April 28, 2025

© 2021 Shippingposition

Navigate Site

  • Home
  • About Us
  • Contact us
  • Privacy Policy
  • Sitemap
  • Terms

Follow Us

No Result
View All Result
  • News
  • Coast To Coast
  • Oil and Gas
  • Maritime Education
  • The Terminals
  • Maritime safety

© 2021 Shippingposition