The International Association of Independent Tanker Owners January 2005

1. The International Association of Independent Tanker Owners • January 2005

2. Vision for the tanker industry: “ A responsible, sustainable and respected industry able to influence its own destiny.”

3. representing responsible oil and chemical tanker owners worldwide • promoting Safer Ships, Cleaner Seas, Free Competition and Effective Regulation • strict membership criteria based on quality and performance (Class, P&I, PSC)

4. INTERTANKO • 230 (+/-) Members 2,200 (+/-) tankers 165 million dwt Average age: 11.3 years • 270 (+/-) Associate Members • 25 Staff / 8 Consultants • IMO NGO status • EU representative office • Partnership agreement with USCG Oslo London Singapore Washington

5. The International Association of Independent Tanker OwnersINTERTANKO • 14 Committees - 4 Regional Panels • Safety & Environment • Technical – incldg. Bunkers, IT • Chemicals, Short Sea, Offshore • Insurance & Legal, Documentary • Vetting, WorldScale • Communications and Public Relations

6. Principal Issues for Tanker Owners • Regional versus International governance - ratification and implementation of existing conventions and legislation • Challenges to liability regimes & Criminalisation for pollution incidents • Zero tolerance of accidents – meeting society’s expectations • Role of partners in lifting standards • Class common structural rules for tankers • Maritime Security • EU Competition rules ?

7. INDUSTRY GOVERNANCE International vs. local, national and regional • Liability – EU Penal Sanctions vs. International Conventions • Safety & Environment – EU (Post Erika & Prestige) vs. IMO/Marpol & SOLAS • Sulphur Levels – EU, USA vs. IMO • Security – MTSA vs. ISPS • Ballast Water Management – US et al vs. IMO

8. The importance of implementation Convention Ratification: • AFS Convention (2001) • HNS Convention (1996) • OPRC-HNS Protocol (2000) • Bunkers Convention (2001) Places of Refuge Reception Facilities Port and infrastructure security

9. Environmental Challenges • Waste reception facilities • VOC Recovery (in port and at sea) • Sulphur Levels (in Fuel) / Air emissions • Ship Recycling (Voluntary vs. Regulatory) • Water Ballast Management (Practical solutions) • Anti-Foulings (Convention – consistent standards)

10. Examples of Round Table cooperation: • Improved dialogue with IACS • Tripartite meetings of owners, builders and class • Flag State guidelines • Industry guidelines on Recycling • The “image” of shipping

11. STEPS FOR A BETTER INDUSTRY

12. Oil into the Sea • Annual Releases, best estimates

13. Importance of partnerships & common commitment to a better industry Chain of Responsibility SHIPOWNER CLASS SOCIETIES CHARTERER SHIPYARDS CARGO OWNER INSURERS PORTS & TERMINALS TRAFFIC MANAGEMENT FLAG STATES

14. Steps for a better industry Examples of Industry safety initiatives: • Analysis of incidents • Standards of Newbuildings • Operational safety • Industry Guidelines for Operations • Flag State guidelines • Port State Control standards • Port and Terminal Safety • Uniformity and consistency in inspections • Greater sharing of information • And much more

15. Steps for a better industry Participation at IMO / in Regional centres – in IMO expert and working groups, & in Industry working groups Current examples: • Chemical accidents review group – owners, charterers, class, IG • MSDS, Pilotage, Lifeboat Safety, AIS, UKC • Marine Electronic Highway • Vetting • Environmental – Recycling, Reception Facilities, Ballast Water • & more

16. Tanker incidents1978-03 Number Source: LMIS, Informa, press, INTERTANKO

17. Tanker incidents 2003 - 130

18. INVESTMENT IN NEW SHIPS Tanker fleet by hull type %

19. Steps for a better industry Standards for Newbuilding and Ships in Service • Drive for Common Structural Rules • Tripartite meetings of Class and Builders • Development of Condition Assessment Scheme • Active participation with EMSA on “High level” double hull panel • Industry wide working groups on corrosion and coatings

20. Steps for a better industry Industry Guidelines – recent INTERTANKO publications: • Tanker Specification Awareness Guide • Guide to bunkering of ships for the purposes of Annex VI to MARPOL • A Guide for correct entries in the Oil Record Book • A Guide to Crude Oil Washing and Cargo Heating Criteria • Awareness Guide to Incident Management and Media Response

21. Port State Control • – the industry perspective Summary: • PSC is actively supported by industry • More needs to be done to ensure harmonised standards • Greater sharing of inspection records would be beneficial • It is an imperative that the integrity of PSC is maintained • Better targeting would result from additional analysis of PSC records • Important lessons can be learned by analysing PSC performance

22. Port State Control Percentage of inspected ships detained

23. Port State Control – detentions by ship size

24. Port State Control – detentions by year of build

25. Industry Leadership - Flag State Guidelines

26. Initiatives via Information Sharing Examples – where some success achieved: • Tanker Structure Cooperative Forum • Incident reporting and analysis, and casualty investigations (CHIRP/POP&C/EMSA) • Common VPQ/VIQ • IMO initiative to reduce number of inspections • Improved PSC targeting • Establishment of TOCA

27. Steps for a better industry Are they working ? Yes ?

28. Accidental pollution from tankers • 1,000 ts Source: ITOPF

29. Accidental oil pollution from tankers and tanker trade m ts spilt 1000 bn tm Source: ITOPF, Fearnleys

30. Thank you www.intertanko.com www.shippingfacts.com