COSRO Advogados

Shipping

We serve the main players in the shipping market, such as vessel owners, shipping companies, port operators, technology providers and investors. Our advisory work focuses on contracts, regulatory matters, strategic litigation and arbitration, project structuring, M&A and financing

Shipping
Shipping

The privileged position of Brazil's shipping sector in the global economy is due not only to the country's strategic location and vast coastline, but also to high public and private investment in modernization, cargo capacity expansion and operating cost reduction, in addition to its commodity production and supply capacity and the international relevance of the Brazilian energy industry

Our view on the industry

With more than seven thousand kilometers of coastline, a strategic location among the American, European and African continents, and one of the largest hydrographic networks in the world, Brazil stands out as an important player in the global scenario and a relevant point of passage for maritime trade routes. Added to this is the high international relevance of the Brazilian oil and gas industry and its capacity to produce and supply commodities such as soybeans, corn, iron ore and oil.

In this context, Brazil's shipping sector is essential to the country's foreign trade and economic growth, with approximately 90% of exports and imports carried out by sea. In recent years, the sector has received even more public and private investment, focused on modernizing infrastructure, increasing cargo capacity and reducing operating costs. New technologies are being implemented, such as the automation of port terminals and the use of digital systems to improve operational efficiency.

The country also has a vast network of public ports and private use terminals (TUPs) that play essential roles in export and import logistics. In recent years, a movement to privatize public ports began, with the aim of modernizing and increasing operational efficiency. However, that process was halted and public ports continue to face challenges of efficiency and resource availability to meet growing demand. As a result, Brazil continues to offer excellent investment opportunities in private use terminals (TUPs).

Continued global demand for commodities keeps Brazilian ports busy. In this context, the offshore oil and gas segment in Brazil stands out as one of the most important in the world, driven by the exploration of pre-salt oil. Shipping companies operating in offshore support, with offshore support vessels, FPSOs and drilling rigs, are essential to this scenario, with demand for specialized vessels remaining high, especially in activities related to oil exploration and production in deep and ultra-deep waters.

Cabotage shipping has been gaining relevance, with government incentives to foster the sector as an alternative to road transport. In 2022, Law 14.301/2022 was enacted, establishing the "BR do Mar" program, which aims to reduce cabotage costs, increase the national fleet and attract investment. Cabotage emerges as an effective internal logistics solution for the country, given its continental dimensions.

Finally, the global shipping sector is increasingly under pressure to adopt sustainable practices, and Brazil is no exception. Issues such as fleet decarbonization, emissions reduction and the environmental management of ports and terminals are central themes in the national debate. Companies have invested in new technologies, such as the use of alternative fuels and more efficient vessels. At the same time, there is greater environmental oversight and regulation to ensure the protection of the marine ecosystem.

  • Expansion of the cabotage sector driven by the "BR do Mar" program
  • Modernization and privatization of public ports and new TUPs
  • Smart ports, with digital integration and real-time monitoring
  • Smart navigation systems
  • Technology and automation
  • Research and development of autonomous vessels
  • Transition to a low-carbon economy in the shipping sector.
  • Continued international demand for commodities
  • Complex regulatory regime in constant transformation.
  • Increasingly stringent environmental requirements
  • Frequent contractual disputes in long-term projects
  • Regulatory and contractual requirements for local investment (local content).
  • Complex tax regime
  • Land tenure issues in port projects
  • Strong market for offshore support vessels
  • Increase in disputes seeking the rebalancing of charter agreements
  • Growth of shipbuilding activity due to incentive policies
  • New investments in private terminals (TUPs)
Work Highlights

Purchase and sale of vessels

We assist in the purchase and sale of vessels, providing comprehensive legal advice throughout all stages of the process. Our work includes the negotiation and drafting of contracts, procedures for the effective transfer of ownership before the competent authorities abroad and in Brazil, such as the Maritime Registry, the Maritime Court and the Port Authority, as well as the suspension, reactivation and amendment of the vessels' maritime registration. Our experience includes, for example, advising a major Greek shipowner on the acquisition of a Brazilian offshore support vessel; and an Australian independent E&P company on the sale of the FPSO Northern Endeavour and the assignment of crude oil offtake agreements together with its interest in the Laminaria and Corallina fields, located in the Timor basin, in the offshore region between Australia and Indonesia

Vessel financing

We advised a ship finance fund on a US$812 million financing for the construction and operation of an FPSO located in the Santos Basin, in São Paulo, Brazil; a ship finance fund on compliance matters arising from an FPSO project in Brazil; and a ship finance bank on a debt restructuring case involving the FPSO OSX-1, which included negotiations with the ANP and advice to creditors on the steps to recover and re-export the vessel from Brazilian waters

Regulatory matters

Our expertise includes legal advice to a global provider of engineering and construction solutions for the energy industry on regulatory matters with ANTAQ and the Brazilian Navy in connection with offshore construction activities for the Atlanta Field located in the Santos Basin, offshore Brazil; to a Dutch multinational provider of solutions for the oil and gas industry regarding maritime regulations and procedures with the Brazilian Maritime Court; among others

Port projects

We assist port operators and investors in project structuring, contractual negotiations and regulatory, tax and securities matters relevant to the conduct of their business. Our experience includes legal support to an industrial port complex with depths of up to 25 meters and capacity to receive large tankers such as Valemax and VLCCs, located in the municipality of Presidente Kennedy, in Espírito Santo, in the drafting of contracts and regulatory matters related to the provision of ship-to-ship services and port operations for tankers operating in Brazil

LNG projects with FSRU

We advise operators, vessel owners and financiers with interests in liquefied natural gas projects on all aspects of their business, including transactions, regulatory matters and financing. Our team has been actively involved in the main LNG projects in Brazil employing Floating Storage and Regasification Units (FSRUs), including legal advice on the acquisition of a combined-cycle natural gas thermoelectric plant in the State of Ceará, Brazil, with an installed capacity of 1.5 GW, supplied by gas from an FSRU, with a sale value of USD 2.16 billion, and involving parties in Brazil, the USA and the United Kingdom; in the bid for the lease of Petrobras's regasification terminal in Bahia, Brazil (TRBA); among others

Cross-border floating LNG project

We provided legal advice to a major international energy trader on a cross-border floating LNG project involving the export of U.S.-sourced natural gas to Mexico for liquefaction by floating facilities to be located in Topolobampo, to be subsequently transported to regions of Mexico currently not served by natural gas pipeline, and with secondary use of the LNG for export to Asian markets

Contracting and operation of FPSOs

We provide legal advice on all matters related to the contracting and operation of FPSOs, such as contractual negotiations and bids, project structuring, support on regulatory and tax matters, financing, obtaining environmental licenses and authorizations from competent authorities such as the Brazilian Navy. Our experience includes legal advice to a vessel owner that is a global market leader in Petrobras bids for the chartering and operation of FPSOs; to an energy services and solutions provider in a Petrobras bid for the chartering of an FPSO to operate in the Libra and Tartaruga Verde and Mestiça fields; among others

Litigation and Arbitration

We assist our clients in resolving complex disputes, in arbitral and judicial courts and in administrative proceedings. Our experience includes legal advice to FPSO builders and operators in disputes exceeding USD 700 million, in arbitrations and litigation before the Court of the State of Rio de Janeiro against Petrobras for contractual economic-financial rebalancing and contractual penalties

Areas of Practice

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