Hard Brexit Consequences

Hard Brexit Consequences on the Offshore Renewables Market

If a Hard Brexit is present on October 31st, 2019, that would have a considerable and significant effect on the Offshore Renewables Market. In the event of a Hard Brexit all UK-flagged vessels will cease to have permission to work in EU-Waters permanently until a new regulation has been developed. But to date it remains unclear as to when a regulation will be found and come into effect.

Charterers and Owners of UK-flagged vessels might not have considered all consequences for their Charter Parties or did not have enough time solving the problem. In order to prevent partial or complete stoppages of offshore projects, delays and the effect of increasing costs the Offshore Renewables Market needs an efficient and rapid solution.

UK-flagged vessels in the EU.

According to Article 1(1) of Regulation (EEC) 3577/92 (the so called Maritime Cabotage Regulation), the provision of maritime transport services within EU Member States is restricted to EU ship-owners. Maritime transport services shall mean services normally provided for remuneration and shall in particular include mainland cabotage and off-shore supply services, i.e. the carriage of passengers or goods by sea between any port in a Member State and installations or structures situated on the continental shelf of that Member State.

From the withdrawal date in a no-deal scenario, it would no longer be possible for UK nationals to provide maritime transport services in accordance with Regulation (EEC) 3577/92, unless EU or (alternatively) MS’ legislation allows access to cabotage for vessels bearing the flag of a third country. Neither the EU nor Germany allow for this. As a result, UK companies will not have maritime cabotage rights within the EU and will not be allowed to provide offshore supply services.