The Brazilian House of Representatives approved Bill No. 4199/20, which allows foreign vessels in coastal shipping (movement of cargo along the coast). That means companies will no longer need to own a Brazilian made vessel to operate. The Bill has been submitted to the Senate, allowing companies to charter a naked-hull ship for coastal shipping. The number of vessels allowed to be admitted by Brazilian shipping companies will gradually increase (i.e. one in 2020, two in 2021, and three in 2022) until 2023 when these criteria will end, and admission will be free. That is, after the third year, the number of vessels will be unrestricted in the years to come and may be subject to the security conditions defined in the regulation. The employment contracts of crews may be subject to the labor regime of the foreign flag. Operating companies must also follow foreign rules, such as those established by the International Labor Organization (ILO) and by the Brazilian Federal Constitution, which grants rights such as 13th-month salary, an additional 1/3 vacation bonus, FGTS, and maternity leave.
*Translated by Ia Niani