On 17 July 2025, the Brazilian federal government published Decree No. 12,555/2025 (the Decree), which regulates Law No. 14,301/2022 and adds new rules to the BR do Mar Program.

The BR do Mar Program, created by Law No. 14,301/2022, aims to develop the country’s cabotage industry, foster competition and stimulate Brazil’s shipbuilding industry. The Decree, which regulates in further detail the general guidelines contained in Law No. 14,301/2022, was much anticipated by the local market. It introduces significant regulatory, operational, and environmental provisions, to ensure the achievement of the objectives of the BR do Mar Program.

At the outset, the Decree clarifies the attributions of each Federal entity. The Ministry of Ports(MPor) undertakes a central role in coordinating the BR do Mar Program, including the registration of eligible companies entering the program and establishment of the criteria for sustainable vessels. Brazil’s Waterway Transportation Agency (ANTAQ) is responsible for granting authorisations for companies to operate as Brazilian Shipping Companies (EBNs) in cabotage and overseeing operations under the BR do Mar Program framework.

Key changes introduced by the Decree are:

1. The Decree formalises five scenarios under which EBNs may time-charter foreign vessels:
   1. expansion of DWT tonnage of the fleet owned by the group and in operation;
   2. in substitution for vessels under construction in Brazil, up to 200% of the DWT tonnage of the vessel under construction is permitted, for periods of up to 6 months (maximum of 36 months);
   3. in substitution for vessels under construction abroad, up to 100% of the DWT tonnage of the vessel under construction abroad is permitted for periods of up to 6 months (maximum of 36 months);
   4. exclusive service of long-term transport contracts; and
   5. exclusive performance of special cabotage operations, up to a limit of 48 months.

A company authorised under the BR do Mar Program as per items (i) to (v) above may only time charter vessels from its wholly-owned foreign subsidiary or from a wholly-owned foreign subsidiary of another EBN, to operate in cabotage, provided that throughout the entire charter period such vessels are either owned or bareboat chartered.

2. A major innovation is the introduction of a sustainability-based incentive system. Depending on the environmental profile of the fleet, companies may charter foreign vessels in proportions ranging from 50% to 300% of their own DWT. The Decree defines “sustainable vessels” as those meeting environmental and social criteria, including the use of cleaner energy sources. Technical parameters for sustainability remain subject to further regulation.
3. The Decree amends Decree No. 2,256/1997 to expand the scope of the Brazilian Special Registry (REB), to now include vessels built in Brazil without prior contracts with EBNs, and vessels owned by Brazilian shipping investment companies, in addition to Brazilian vessels operated by EBNs and foreign vessels chartered by EBNs under bareboat contracts with suspension of original flag.
4. Right to procure insurance cover abroad for owned or chartered vessels has been extended to EBNs and Brazilian shipping investment companies, for H&M and liability—including wreck removal— regardless of whether registered in the REB.

In order to seize opportunities presented by Decree No. 12,555/2025, international stakeholders should consider that:

• The sustainability-based chartering model creates new entry points for foreign vessels aligned with ESG standards.
• Collaborating with Brazilian EBNs may facilitate market entry and regulatory compliance.
• Ongoing regulatory developments, particularly from ANTAQ, will define technical criteria for sustainability and special operations.

Decree No. 12,555/2025 marks a long-awaited advancement in Brazil’s continued efforts to modernise and stimulate its cabotage sector through the BR do Mar Program. By clarifying regulatory roles, introducing flexible vessel chartering scenarios, and incentivising sustainability, the new framework not only enhances operational capacity but also aligns the industry with global ESG standards.