INTERTANKO International Association of Independent Tanker Owners

1. INTERTANKOInternational Association of Independent Tanker Owners Singapore Meetings May 2012 DMDs Overview: Association Finance Priorities + Strategic Plan Katharina Stanzel Deputy Managing Director INTERTANKO

2. Financial Statements 2011 • E&Y Audit successfully completed • Operating income: US$ 200k above budget • publications/ tanker event/ membership up • Operating expenses: ~5% below budget • tight cost control, reduced travel, lower representation expenses • ExCom reimbursement 50% only • Result for the year just under US$ 955k • => Cash Reserve 31.12.11 US$ 7 036 507

3. 2011 Figures (US$) 2011 2011 2012 (Actual) (Budget)(Budget) OperatingIncome 7,753,228 7,572,650 7,401,925 Operating Expenses-6,886,593-7,217,450-7,373,997 Operating Result 866,635355,200 27,928 Non-operating Income/expenses 87,303 -25,000-25,000 Result for Year 954,938330,200 2,928

4. 2012 BUDGET • 2010membership fees -10% • No change in 2011 membership fees • 2012 membership fees -5%

5. BUDGET (US$) 2011 2011 2012 (Actual) (Budget)(Budget) OperatingIncome 7,753,228 7,572,650 7,401,925 Operating Expenses-6,886,593-7,217,450-7,373,997 Operating Result 866,635355,200 27,928 Non-operating Income/expenses 87,303 -25,000-25,000 Result for Year 954,938330,200 2,928

6. Outstanding Fees 8. May 2012 • Members: 58 US$ 1 253 378 • Assoc. M.: 82 US$ 236 586 • FDIP: 14 US$ 20 160 • Total 154 US$ 1 490 024

7. Five Year Strategic PlanScenario Planning Macro Environment Analysis

9. 5 • 6 5 • 6 Markets Good Environmental Concern Reasonable 3 • 1 • 4 • 2 Geopolitics stable Geopolitics unstable 8 Envl. Concern Extreme Markets Bad

11. Markets Good • Market: good • Geopolitics: uncertain • Environmental Concern: extreme Geopolitics stable Geopolitics unstable • Market: good • Geopolitics: uncertain • Environmental Concern: extreme Markets Bad

13. Strategic Objectives • To develop and promote Best Practices in all sectors of the tanker industry, with owners and operators setting the example. (BP) • To be a positive and proactive Influence with key stakeholders, developing policies and positions, harmonising a united industry voice and engaging with policy and decision makers. (I) • To profile and Promote the Tanker industry, communicating its role, strategic importance and social value. (PT) • To provide key Services to Members with customised advice, assistance and access to information, and enabling contact and communication between Members and with other stakeholders. (S)

14. Major Issues • Greenhouse Gas Emission Reductions • Air Emission Reductions • Ballast Water Management • Global Maritime Security Threats • Tanker Safety & Performance • Sustainability • Human Element

15. Major Issues & Desired Outcomes Greenhouse Gas Emission Reductions • Members’ new tankers meet/exceed, required EEDI and CO2 emission reductions targets • Develop solid industry practices & monitoring system for GHG emission reductions from tankers in operation (in cooperation with other stakeholders such as OCIMF, allowing Members’ tanker fleets to achieve & demonstrate increases in efficiency • IF legislation on MBMs to be implemented, support/ promote most practical & transparent alternative at IMO (not regional)

16. Major Issues & Desired Outcomes • Air Emission Reductions • Global switch to cleaner fuels • Members fully advised on best choices for compliance with ECA requirements (and on how to assess and select scrubbers) • Revised EU Sulphur Directive aligned with MARPOL Annex VI

17. Major Issues & Desired Outcomes • Ballast Water Management • Members able to achieve compliance with current and future discharge standards (both regionally and internationally)

18. Major Issues & Desired Outcomes • Global Maritime Security Threats • Members suitably informed to protect vessels & crew from maritime security threats • Key stakeholders develop policies & positions benefiting whole industry • Members suitably informed of sanctions that affect their trading patterns and decisions

19. Major Issues & Desired Outcomes • Tanker Safety & Performance • Members proactively positioned for top performance with regard to safety & performance • Sustainability • Members have access to tools, models and information to enable them to continue operating • Human Element • Members have access to tools, models and information to enable them to continue operating

21. Greenhouse Gas Emission Reduction Desired Outcome: Members’ new tankers meet/ exceed required EEDI values and CO2emission reduction targets Tactics: • Advise and support members in complying and exceeding EEDI (S) • Create central database of EEDI values managed by INTERTANKO (PT) • Analyse collected data to assess level of compliance (BP, S, PT) • Report on results to members & other stakeholders e.g. to assist in IMO’s review of EEDI compliance (BP,I,PT) • Liaise with Designers, Manufacturers, Charterers, other stakeholders to drive developments for safe, cost effective, environmentally sound tankers (S)

22. Greenhouse Gas Emission Reduction Desired Outcome: Development of solid industry practices & a monitoring system for GHG emission reductions from tankers in operation, in cooperation with other stakeholders (e.g. OCIMF), allowing Members’ tanker fleets to achieve and demonstrate increases in efficiency Tactics: • Create environmental performance database (S) • Analyse collected data for periodical assessment of members’ emissions and efficiency improvements (BP,PT,S) • Report on results to members, regulators and other stakeholders in order to demonstrate industry sector performance (BP,I,PT,S) • Communicate Industry’s environmental credentials and increases in efficiency alongside its role in serving world trade (PT)

23. Greenhouse Gas Emission Reduction Desired Outcome: IF MBM legislation were to be implemented, support/ promote most practical & transparent alternative at IMO, not at regional level Tactics: • Continue to monitor/ influence IMO, US & EU legislators and contribute to rule development by providing information on the likely fleet-wide impacts of various MBMs (I, PT) • Participate in the UNFCCC process alongside IMO where appropriate and beneficial (I,PT)

24. Air Emissions Reduction • Desired Outcome: [Global switch to use cleaner fuels] • Should this policy decision continue to be pursued ? • Tactic: • Use opportunities, conferences, publications, articles to present advantages of use of clean fuels as major factor in reducing air + GHG emissions (I) • Desired Outcome: Revised EU Sulphur Directive aligned with MARPOL Annex VI • Tactics: • Continue work with EU DG Environment and members of EU Parliament and Council as well as other stakeholders to guide decision making (I)

25. Air Emissions Reduction • Desired Outcome: Members fully advised to make right choices for compliance with ECA requirements (and on how to assess and select scrubbers) • Tactics: • Issue guidance to Members for compliance with ECA requirements (BP,S) • Issue list of critical issues members should investigate when assessing/selecting scrubbers (incl. justifications and clarification of issues) (BP,S) • Gather feedback from Members on their decision making regarding ECA compliance and experience with measures taken (BP) • Update INTERTANKO guidelines on Bunkering, Fuel Switching etc. (BP) • Ensure guidance and critical issue lists are continuously improved as experience is gained either through additional information from manufacturers or feedback from members (BP,S) • Monitor and liaise with refining industry with regard to changing refining processes and fuel availability issues and push to see global sulphur cap of 0.5% enforced in 2020. (I) • Assess to the extent possible availability of adequate marine fuels (S)

26. Ballast Water Treatment • Desired Outcome: Members able to achieve compliance with current and future ballast water dischargestandards on a regional and international basis and remain compliant in future. • Tactics:Installation and Operation of BWTS • Provide Members with information on physical installation & operation of ballast water treatment systems through knowledge sharing in relevant Committee meetings and through the Weekly News and Environmental Bulletins (BP,S) • Based on the experience gained by members, develop and promote best practices on the installation and operation of BWTS through updates of the INTERTANKO Ballast Water Treatment Systems Guide (BP) • Monitor and report on the progress of INTERTANKO’s members in meeting current ballast water discharge standards in order to positively and proactively influence any future amendments and changes to regional and international ballast water legislation (I,PT)

27. Ballast Water Treatment • Tactics:Regulatory Focus (compliance and enforcement) • Engage with regional and national authorities with a view to promoting the implementation of the International Ballast Water Convention as a single, international regulatory regime (I) • Develop a comprehensive document outlining the various technical, practical and compliance challenges of installing and operating BWTS on tankers in order to positively and proactively influence the regulatory authorities responsible for developing the type approval and PSC enforcement processes for BWTS (I,PT) • Promote a robust and practical type approval process adequate to ensure the compliance of the vessel once the system is installed on board (I,S) • Positively and proactively influence the PSC compliance and enforcement process drawing particular attention to the need for uniformity and harmonization with the type approval process (I)

28. Global Maritime Security Threats • Desired Outcome: Members suitably informed to enable them to protect their vessels and crew from maritime security threats. • Tactics: • Proactively engage in the debate on best practice, collate member feedback and look for innovation which may lead to more secure vessels (BP,S) • Provide clear advice on the most recent trends and best practice to members on request (S) • Continue to develop and promote best practices and BMP guidelines as requirements evolve in cooperation with key partners, striving for a common voice (BP,I,S) • Maintain the timely advice issued through the INTERTANKO Security Bulletins which are collated from key sources, but primarily UKMTO and ensure that lessons learnt from incidents are clearly shared with the membership (BP,S) 

29. Global Maritime Security Threats • Desired Outcome: Key stakeholders positively and proactively influenced so that policies and positions are developed for the benefit of the whole Industry to ensure freedom of navigation. • Tactics: • Continue to participate in and contribute to the international efforts to eradicate piracy. This includes work with the five UN WG’s for PCS, IMO, Industry partners, UKMTO, MSCHoA, NATO, EC, FCO/DfT (I,PT) • Use feedback and firsthand experience from members at suitable speaking events to strengthen the Industry voice and ensure it is heard (I,PT)

30. Global Maritime Security Threats • Desired Outcome: Members suitably informed of international, regional and national sanctions that affect their trading patterns, to enable them to make informed decisions on lawful trade. • Tactics: • Monitor international, regional and national sanctions and provide regular guidance to Members via Weekly News, targeted bulletins, and in response to individual questions (S) • Work with key partners including the International Group of P&I Clubs and other shipping industry associations to ensure sanctions legislation is clear, workable and properly targeted (I)

31. Tanker Safety & Performance • Desired Outcomes: INTERTANKO members proactively positioned as top performers in terms of tanker safety and performance: zero fatalities, zero pollution, zero detentions • Tactics: • Develop guidance and best management practices with members and other industry bodies on issues which are key to tanker safety & performance (BP,I) • Provide information to members so that they have a clear understanding of the requirements set by IMO, regulators/ administrations, OCIMF, oil majors, charterers and class societies amongst others (S) • Work with ship inspection organisations, oil companies and port state authorities to ensure that the global ship inspection and vetting regime is unified and streamlined resulting in fewer inspections per ship per year (BP,I,PT)

32. Tanker Safety & Performance • Tactics (contd): • Provide leadership on the development of guidance and best management practices for key industry practices/ policies within industry bodies, national regulatory bodies and the IMO, to influence the development of regulations (BP,I,PT) • Review tanker safety and performance databases and ensure that what is being measured is optimum and presented in the most useable format. Propose updates as necessary and promote a framework of continuous improvement (PT,S) • Actively collate and promulgate the latest initiatives regarding tanker safety and performance to members within an open and positive feedback process (BP,S)

33. Sustainability • Desired Outcome: (Development and provision of tools, models and information to assist Members to continue operating) to be reviewed • Tactics: • Provide members with the most up-to-date tanker market information on a regular basis (S) • Develop the optimal speed model (S) • Investigate alternative methods to handle additional bunker costs(I) • Expand Worldscale Committee mandate and task committee to engage in discussions with brokers (S)

34. Human Element • Desired Outcome: No unfair treatment or criminalisation of seafarers • Tactics: • Develop Terms of Reference for Criminalisation Working Group and co-ordinate Working Group to study criminalisation and effect on safety/recruitment • Enable best practice to be followed in reporting and investigation of incidents, thereby enable lessons to be learned. • Raise awareness of criminalisation of seafarers and detrimental local laws and judgments for all instances of criminalisation • Engage with governments / IMO to promote UNCLOS and MARPOL and to bring national laws into line • Desired Outcome: Well trained, competent crews • Tactics:

35. Key Focus Areas