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The Insurance Institute of London

The Insurance Institute of London. 19 October 2007 Substandard Shipping – Who is Responsible ? Peter M. Swift Managing Director, INTERTANKO. Substandard Shipping - who is responsible ?. Me √ You ? Anyone who tolerates standards below the accepted “norms” ?.

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The Insurance Institute of London

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  1. The Insurance Institute of London 19 October 2007 Substandard Shipping – Who is Responsible ? Peter M. Swift Managing Director, INTERTANKO

  2. Substandard Shipping- who is responsible ? • Me √ • You ? • Anyone who tolerates standards below the accepted “norms” ?

  3. Total Losses by Number(Ships over 100gt) 300 250 200 150 Number of Ships 100 50 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 A “loss” refers to ships damaged beyond economic repair Source: Lloyd’s Register Fairplay

  4. Number of Bulk Carrier Losses 1996 - 2005 20 18 16 14 12 10 No. of Losses 8 6 4 2 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Year Total number of losses Number of losses by structural failure

  5. Development of Oil Spills Source: ITOPF. Number of spills above 700 tonnes.

  6. Pollution from tankersTonnes / billion tonne mile Tanker accidental pollution rate tonnes spilt per bn tonne miles trade 35 30 25 20 15 10 5 0 1971-75 1975-80 1981-75 1986-90 1991-95 1996-00 2001-05 Source: ITOPF spills, Fearnleys: Tonne miles

  7. Reported tanker incidents(1978 – 2005) 1000 800 600 400 200 0 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 War Grounding Hull & Machinery Collision/Contact Fire/Explosion Other

  8. Safely and Reliably

  9. Cost Effectively Oil price and tanker freight rate 1976-2006 Freight rate and oil price (USD/bbl) deflated by the US consumer price indexOil price 2006 is approx price end April and not average price for the year.

  10. Shipping Industry Performance • Is a record of “continuous improvement” • But the industry is not complacent ! and is • “Striving for Zero” Zero fatalities, zero pollution, zero detentions

  11. Shipping Industry : A record of“continuous improvement” Q: How has this been achieved ? A: A combination of Regulation and Self-Regulation Although difficult to prove !

  12. “Good” Regulation ANDIndustry Best Practice

  13. Industry works to encourage“Effective” Regulation • Developed at the global level, wherever appropriate (consistent with existing law) • Fit for purpose (provides solutions) • Properly considered (stakeholders involved) • Impact(s) fully assessed (economic and social) • If adopted, implemented uniformly and promptly Engaging with legislators, regulators, politicians and the media

  14. Industry works to develop and promote “Self Regulation” • Adopting “best practices” • Producing industry guidelines • Developing programmes, procedures, etc. - Design, Shipbuilding, Operations, Training, Inspections, Investigations and more… Engaging with partners, legislators, regulators, politicians, media and public

  15. EXAMPLES of Industry’s Quality Initiatives Tripartite dialogue: owners, builders and class: • Common structural rules • Coatings and coating performance standards • Goal Based Standards (Tiers IV & V) • Information sharing • Shipboard waste management Inter-Industry Group (Chemical Tanker accidents): • Inert Gas for CT on presently exempted ships • Human Element Task Force

  16. EXAMPLES of Industry’s Quality Initiatives Industry Guides: • Flag State Performance • Recycling guidelines • ISGOTT • Newbuilding Awareness guide • Model Ballast Water Management plan • Garbage Management plan • ISO 14001 planning • Oil record book completion, OWS guidance • Mooring, STS, COW, etc. • ………

  17. EXAMPLES of Industry’s Quality Initiatives Industry practices: • Ship vetting (owners & charterers) • Management self-assessment programmes • Terminal vetting • VOC control on passage (VOCON) • Casualty reporting • PSC record analysis • ………..

  18. EXAMPLES of Industry’s Quality Initiatives Industry-Government Programmes • Marine Electronic Highway • Pilotage User Group (Denmark) • Reception Facilities Forum • Double Hull Panel (EMSA) • ………

  19. EXAMPLES of Industry’s Quality Initiatives “Ahead of” regulatory implementation: • Annex VI (Nox & Sox, VOC) • Anti Fouling Systems (TBT Ban) • Fixed Gas detection systems (Ballast tanks) • Cargo tank coatings • IG on smaller chemical tankers • BW management trials • OWS alternatives • Green Passport and HMI standards • ……….

  20. Substandard Shipping- who is responsible ? What can we (all) do ?

  21. BUILDERS DESIGN TRAINING EQUIIP SUP EDUCATION CLASS SHIPBREAKERS CARGO INCIDENT MGT FINANCIERS SALVORS MANAGERS REPAIRERS OWNER OPERATOR CARGO AGENTS BROKERS CREW P&I LABOUR HULL INSR TUGS FLAG STATE PILOTS COASTAL STATE BUNKERERS WATERWAYS TERMINALS PORT AGENCIES GOV STATES LOCAL GOV STAKEHOLDERS IMO

  22. Poseidon Challenge- commitment to continuous improvement- commitment to working with all partners

  23. Substandard Shipping- what can we do ? Final thoughts: • Can we live with differentiated standards ? • How can we share information more effectively across the maritime communities ?

  24. EQUASIS Information System The principles behind Equasis: • A tool aimed at reducing substandard shipping (limited to safety-related information). • An international database covering the whole world fleet. • Involvement of ALL players involved in the maritime industry. • A tool to be used for the better selection of ships • The promotion of the exchange of unbiased information and transparency in maritime transport (- to be better informed about the performance of ships and maritime organisations).

  25. Learning from Tanker incidents: 2005OR NOT ? Total 161 Hull & Machinery 29 engine, 3 hull Miscellaneous Fire & Explosions. Grounding Collision* *includes contact

  26. THANK YOU www.intertanko.com www.shippingfacts.com www.themaritimefoundation.com

  27. International Association of Independent Tanker Owners Represents responsible oil and chemical tanker owners worldwide, promoting their interests and providing members with technical, operational, legal, documentary and other support services, information and advice. 250 + members representing > 80% of the independent oil tanker fleet and > 85% of the chemical carrier fleet, with strict membership criteria 300 + associate members in oil and chemical tanker related businesses 15 Committees - 4 Regional Panels Representative Offices in Europe, US and Asia

  28. Mission and Vision MISSION “Provide leadership to the Tanker Industry in serving the world with the safe, environmentally sound and efficient seaborne transportation of oil, gas and chemical products.” VISION FOR THE TANKER INDUSTRY “A responsible, sustainable and respected Tanker Industry, committed to continuous improvement and constructively influencing its future.”

  29. One of the Association’s primary goals: Lead the continuous improvement of the Tanker Industry’s performance in striving to achieve the goals of: Zero fatalities Zero pollution Zero detentions

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