ANTAQ to allow foreign vessels to be chartered temporarily to substitute for national vessels that are docked

The National Waterway Transport Agency – ANTAQ changed a rule on its Normative Resolution No. 01-ANTAQ, issued on February 13th, 2015, which regulates the chartering of foreign vessels whilst vessels used for cabotage are out of action. Resolution No. 7,858, of July 6th, 2020, was published in the July 8th edition of the Federal Official Gazette.

The Normative Resolution states that such chartering is allowed during the time that a vessel, that has been in regular commercial operation, is docked. This, however, is limited to chartering a vessel of a similar type and size equivalent to the docked vessel, after verifying the unavailability of a Brazilian flag vessel of the appropriate type and size.  Moreover, the chartering will be authorized for a period of up to 90 days, counted from the time of effective docking of the vessel, to the date of delivery of the vessel to the shipyard.

In order to obtain the authorization for foreign vessel chartering, the Brazilian Shipping Company (EBN) must submit the docking plan to ANTAQ, stating the reason and also the schedule with the transit period of delivery of the vessel to the shipyard and its return to EBN.

According to ANTAQ’s Superintendent, Alber Vasconcelos, the change in the rules will cover possible operational gaps in time charter requests resulting from regular and mandatory docking operations carried out by EBN, thus allowing shipping capacity to be maintained. “It is common for these companies to dock their operating vessels, while at the same time having to maintain a constant service to regular customers. The weekly vessel calls are of paramount importance to such shipping lines, and there is no surplus capacity in the national market to cover for the absence of a vessel ”, he explained.

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