A new set of shipping operations guidelines has been developed for shipping businesses to follow in response to the outbreak of the Covid-19 pandemic to help fight against the spread of Covid-19. The shipping industry has also been impacted as the pandemic has had a huge impact on the industries of the entire world, including the shipping industry. Covid-19 has put passenger ships up against an unparalleled task. The shipping industry has been barred from mooring all around the world. There will be some idle resources temporarily laid off, and as the situation changes every day, there are more that could follow in the future.
Almost every world’s trade is transported by the shipping sector, which is inevitably impacted by turbulent international market patterns. Shipping owners must continuously evaluate how well their capacity is being used to meet market demand during this pandemic. The most adaptable and advantageous choice is to frequently lay up ships until it meets the market demands. Commercial factors such as shipping expense and time are required for reactivation of the shipping operations and must be taken into account by the shipping owner when considering the decision of laying up a ship. Before we go further in-depth about this, let’s take a read on the fundamentals of shipping lay-up.
What is Lay-up in the Shipping Industry?
People in the shipping industry must be all aware of the term “Lay-up”. Lay-up of ships refers to vessels that have been temporarily out of service due to a lack of freight or cargo that force them to be temporarily halted the operation for commercial purposes. Sometimes increases in freight or cargo rates are not enough to pay for the ships’ operating expenses and thus, what shipping lay-up makes sense to the shipping companies.
There are two types of shipping lay-up; hot and cold lay-up. A ship sits idle while the ship is on a hot lay-up, but can be quickly put back into service. For more information about it, do check out hot lay-up Malaysia. When a ship is in a cold layup, it signifies that it has been taken out of operational service owing to a lack of work and is moored in a secure location while it waits for gainful works.
Factors to Consider When Preparing Ships For Lay-Up
Shipping lay-up preparations are done in a way that prevents any traditional and unwanted delays from occurring during the shipping operation and mobilization. It is essential that the corporate officials and the ship owners comprehend together the factors involved in organizing and carrying out a secure shipping lay-up process. Here are some key factors to consider when planning a strategy before the lay-up process to avoid any problems;
- Choose the right lay-up type that is suitable for the vessels.
- Focus on the safety and sustainability of the shipping lay-up process.
- Decide on the mooring arrangement.
- The availability of lay-up location.
- Consider the lay-up operational costs.
- Ensure that the vessels have adequate and practical power as a backup.
- Notify the official authorities of the details of the lay-up process.