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China Oil Transportation Safety Forum Shanghai, China - July 20, 2011

China Oil Transportation Safety Forum Shanghai, China - July 20, 2011 . Analysis of Tankers Accidents and the Human Element in Oil Transportation Safety JOSEPH ANGELO MANAGING DIRECTOR. INTERTANKO Tanker Statistics Human Element. INTERTANKO.

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China Oil Transportation Safety Forum Shanghai, China - July 20, 2011

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  1. China Oil Transportation Safety Forum Shanghai, China - July 20, 2011 Analysis of Tankers Accidents and the Human Element in Oil Transportation Safety JOSEPH ANGELO MANAGING DIRECTOR

  2. INTERTANKO Tanker Statistics Human Element

  3. INTERTANKO • INTERTANKO is a non-governmental organization established in 1970 to represent the interests of independent tanker operators at the international, regional, national and local levels • Staff of 24 with offices in London, Oslo, Washington, Singapore and Brussels • NGO status at the International Maritime Organization (IMO) and the International Oil Spill Compensation Fund.  Consultative status at the United Nations Conference on Trade and Development.

  4. INTERTANKO MISSION Provide Leadershipto the Tanker Industry in serving the World with the SAFE, ENVIRONMENTALLY SOUND AND EFFICIENT seaborne transportation of oil, gas and chemical products

  5. INTERTANKO PRIMARY GOAL Lead the CONTINUOUS IMPROVEMENT of the Tanker Industry’s Performance in striving to achieve the Goals of: • Zero Fatalities • Zero Pollution • Zero Detentions

  6. MEMBERSHIP MEMBERSHIP is open to independent tanker owners and operators of oil and chemical tankers (i.e. non-oil companies and non-state controlled tanker owners) who meet the membership criteria. ASSOCIATE MEMBERSHIPis available to any entity with an interest in the shipping of oil and chemicals.

  7. MEMBERSHIP • 250+ Members • 3,300+ Tankers • 285+ Million DWT • Members in 40+ countries • MORE THAN 75% OF THE INDEPENDENT TANKER FLEET • 300+ Associate Members

  8. Tanker Statistics

  9. All reported tanker incidents all tankers all sizesand accidental oil pollution from tankers (bars) ’000 ts Number Seaborne oil trade has increased some 30% since 2000

  10. All reported tanker incidents all tankers all sizesall types of incidents show ≈ the same trend Number Grounding decline the most, typical human related incidents collision and grounding 43% of incidents in 2011, (50% in 2010, 47% in 2009, 48% in 2008), hull& machinery incidents mainly engine failure, hardly any hull failures

  11. Tanker incidents by type % of total 2012 a projection based on 166 days Source: INTERTANKO, based on data from LMIU, ITOPF + others

  12. Tanker incidents Worst incident 2009 may be collision/fire Formosa Brick collision in the Straits of Singapore Aug 2009 9 fatalities and Elli that broke in to two at the entrance Suez Canal. Rate is number incidentsdivided by number tankersin the segment

  13. Tanker hull & machinery incidents Number incidents Based on data from LMIU, ITOPF + others

  14. Hull & machinery incidentsEngine – on average 55%, 2011 71% Number

  15. Tanker hull & machinery incidents Number of incidents 2010 figures are for 110 days Based on data from LMIU, ITOPF + others

  16. Accidental oil pollution into the seaspills per tonne-miles 1970-2011 Tonnes spiltper bntonne miles oil transportation No major this year oil spill until June 2011 Record low 2008/09 Source: INTERTANKO/ITOPF

  17. Accidental oil pollution into the sea and tanker trade 1000 ts spilt bn tonne-miles Source: INTERTANKO/ITOPF/Fearnleys

  18. Number spills above 700 tonnes Number 1970s 25.2 1980s 9.3 1990s 7.8 2000s 3.3 Record low 2008/09 Source: INTERTANKO/ITOPF

  19. Incidents attended by ITOPFMost oil spills come from bunkers and other shiptypes than tankers Number of incidents Source: International Tankers Owners Pollution Fund (ITOPF)

  20. Estimated total average annual U.S. Oil Spillage bbls Storage and consumption include: Non-Tank Vessels (Cargo Ships) (2%), Other vessels (5%), Gas stations and Truck stops, Residential, Aircraft, Inland EPA-Regulated facilities (77%), Coastal facilities (Non-Refining) , Inland unknown, Motor vehicles, Others Transport includes: Inland pipelines (80%), Tanker trucks (10%), Railroads (2%), Tank ships (4%), Tank barges (percentages are percentages for the period 1998-2007 for the particular segment. (Percentages in graph is the tank ships percentage of total spillage for he period). Pollution from tankers in the US have been strongly reduced both in absolute terms and as a percentage of total spillage in each period Based on data from USCG

  21. Tanker accidental pollution 1974 – 2010by cause Tankers spills of 7 - 700 tonnes Tankers spills of < 7 tonnes Tankers spills of > 700 tonnes 9,938 spills 958 spills 106 spills Operational Other/unknown Groundings Hull failures Collisions Fire & Explosion Based on data from ITOPF

  22. Human Element

  23. INTERTANKO INITIATIVES Tanker Officer Training Standards(TOTS) Benchmarking Lost time indicator Crew/officer retention Databases Confidential accident reporting(CARP)

  24. Why TOTS? • Increasing tanker incidents • Human Element Factors • Shortage of Experienced Officer • Officer Training Requirements Continuous Improvement (TMSA)

  25. TOTS OBJECTIVES • Ensure compliance with today’s rules and regulations. • Ensure that the team onboard will operate the tanker safe and environmentally aware • “Ease compliance” with Officer Matrix Requirements.

  26. TOTS ELEMENTS Four Elements of the TOTS 1. Training Record Books: Time in Rank Time with Company 2. Computer Based Assessment (CBA) Time in Rank 3. Company Verification (CBA) Time with Company 4. Ship Specific Practical Simulator Verification/Training Tanker Type Specific Time in Rank Specific

  27. TOTS - Approved Maritime Training Centers • Major training centres accredited for TOTS simulator training courses: MTC HamburgARI in IndiaCOMPASS in ManilaItalian Maritime Academy Philippines (IMAPhil) • All are accredited to operate TOTS element 4 for crude oil tanker, product tanker and chemical tanker simulator training and simulator verification

  28. TOTS – Human Element Human Element aspects addressed in TOTSvia Crew Resource Management (CRM): • Situational awareness • Planning & Decision making • Communications • Teamwork • Emotional climate • Stress • Managing Stress • Commercial Organizational Pressures • Morale • Fatigue

  29. TOTS – Additional Info • Winner of the 2009 SEATRADE Award for “Investment in People” • Approved as a Professional Standard by The Nautical Institute. The Institute of Marine Engineering Science & Technology • For E-TOTS and paper version of TOTS, contact publisher Marlin at http://www.marlins.co.uk/tots.htm

  30. Lost Time Indicator Frequency • Lost Time Indicator Frequency (LTIF) provides members with a useful tool for benchmarking their LTIF and Total Recordable Case Frequency (TRCF) against other INTERTANKO members in a confidential manner • Based upon OCIMF Marine Injury Reporting Guidelines. • LTIF and TRCF are calculated and sorted from low to high in bar graphs displaying the results so members not only to know whether they are below or above average, but also to know their position vis-à-vis other members (See example)

  31. Lost Time Indicator Frequency

  32. Crew/officer retention • Crew/Officer Retention benchmarking enables members to input their own results and then benchmark their rates against the INTERTANKO fleet on a fully confidential basis • Rates formula has been modeled upon the "Abelson adjusted turnover rate” modified by INTERTANKO to ensure that the output is a measure of the company percentage retention rate as opposed to a turnover rate % Retention Rate (RR) = 100 - [ ({S – (UT + BT)} / AE) x 100 ] S Total Number of terminations from what ever cause UT Unavoidable Terminations BT Beneficial Terminations AE The average number of employees working for the company (12 month rolling period).

  33. Crew/officer retention Crew Retention Rate (Average 93.6%) Officer Retention Rate (Average 91.3%)

  34. CARP The INTERTANKO Confidential Accident Reporting Platform (CARP) database provides a recognised and respected source of accident information for use by INTERTANKO's Secretariat and its Members. Members input their own incident data in a fully confidential basis whilst allowing INTERTANKO to use the information so that: • Lessons can be learned and shared • Similar accidents prevented • Standardise accident data and categorisation • Standardize simple accident analysis, root cause, direct cause and corrective actions

  35. SUMMARY • Tanker incidents have steadily declined over the years • There was a recent slight up-tick in tanker incidents, mainly due to engine failures and human element factors, but that has subsided • Oil pollution from tankers has decreased over the years with a dramatic decline within the past decade • INTERTANKO has initiated measures to assist its members in improving human element factors and monitoring their progress

  36. Thank You JOSEPH ANGELO MANAGING DIRECTOR INTERTANKO www.intertanko.com

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