INTERCARGO International Association of Dry Cargo Shipowners

1. INTERCARGO International Association of Dry Cargo Shipowners Presentation to the Public Forum, Anchorage March 29th, 2005

2. INTERCARGO • INTERCARGO, the International Association of Dry Cargo Shipowners • Direct entry organisation • Specialising in Bulk Carrier issues • Established in 1980 • Promotion of Safety, Quality, Efficiency and a Level Playing Field

3. INTERCARGO Membership • 110 Full and Associate Members • 900 +/- bulk carriers over 10,000 dwt • Inclusive of Operators as full members • Membership criteria: • PSC record, P&I Club, IACS, ISM, I/C Excomm.

4. The ROUND TABLE of international shipping associations • BIMCO, ICS, INTERCARGO & INTERTANKO • Chamber of Shipping of America (Washington) • Vision for the shipping industry • “ A responsible, sustainable and respected industry able to influence its own destiny.” • Represents about 95% of World Shipping • Develop a Strategy for the Industry and a conduit for engagement

5. Vision INTERCARGO • Safe, efficient and environmentally friendly dry cargo maritime transport industry where its member’s ships service world trade • Operating competitively, safely and profitably

6. INTERCARGO Abiding Principles • Quality and Safety • Transparency • Engagement Worldwide • Environmental Awareness

7. INTERCARGO • Shipping – national, regional and international • The international shipping industry - about 90% of world trade • Lynchpin of the global economy • Ships are technically sophisticated, high value assets • Nearly everything we touch and much of what we eat is carried by sea

8. 1,800 Phosphate 1,600 Bauxite and Alumina Grain 1,400 Coal 1,200 Iron ore 1,000 Million tonnes 800 600 400 200 0 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 est 2004 est 2005 est Source: Fearnleys INTERCARGO Purpose of shipping Main drybulk – Seaborne Trade

9. INTERCARGO +7.6% +5.5% +2.1% Purpose of Shipping - Major dry bulk export cargoes Source: SSY

10. 6,000 5,500 5,000 Number of ships 4,500 4,000 3,500 3,000 1996 2000 2004 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1997 1998 1999 2001 2003 2002 INTERCARGO • Drybulk fleet development • Number of ships Source: Fearnleys

11. 350 300 250 Million dwt 200 150 100 50 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Source: Fearnleys INTERCARGO • Drybulk fleet development • Million dwt

12. Oil pollution into the sea Maritime sources Ex: INTERTANKO

13. INTERCARGO Bulk Carrier Casualty Trends to Goal Zero Average age of ship losses Annual average ship loss DWT Losses Annual average loss of lives

14. INTERCARGO The regulatory structure of shipping • IMO • National Administrations • Classification Societies • Flag States • Port States • Self-regulation

15. INTERCARGO Safer Shipping – Chain of Responsibility • Stakeholders: ongoing continuous improvements • More effective regulation • A balance of interests • Self regulation • Global process with local input

16. INTERCARGO The Human Element • Seafarers are a vital Stakeholder • Authorisation under STCW – Standards on Training, Certification and Watchkeeping (IMO) • Seafarers must not be forgotten nor criminalised • The men and women at sea make an enormous contibution to our lives

17. INTERCARGO “Specific measures” • Tracking Systems • Emergency Towing Vessels • Oil Spill Response Preparedness • Vessel Routing • Transparent Accident Investigation

18. INTERCARGO Tracking Systems • Automatic Identification Systems (AIS): Industry supports concept; but concerns remain about access to the information, security, terrorism, etc. • IMO global solution: focus on local area systems. • Long Range Identification and Tracking (LRIT); US proposing 2000 miles information.

19. INTERCARGO EmergencyTowing Vessels • European response – ETVs located and paid for by Governments • IMO DE48 (the 48th session of the Sub-Committee on Ship Design and Equipment, Feb 2005) - proposed draft amendments toSOLAS regulation II-1/3-4 on emergency towing arrangements on ships other than tankers • IMO DE48 correspondence group tasked to assess deck equipment to be used in emergency towing, and to submit a report to DE 49 (early 2006)

20. INTERCARGO US Spill Response • OPA 90: a great success for tankers • Non-tank vessels required to have an oil spill response plan by Aug. 2005 • Area contingency plans • Ship management training

21. INTERCARGO Routing and Navigation • IMO routing measures • Particular Sensitive Sea Areas • National measures must be risk based • Charterers role

22. INTERCARGO Risk Assessment of Great Circle Route • Assessment of incidents • Work with US Coast Guard • Work with State and National bodies • Industry dialogue • Define local and national policy

23. INTERCARGO Transparent Accident Investigations • Local interests and Industry need quick investigations – rarely happens • Obstacles include: • - The legal process/politics • - Protection & Indemnity Clubs (Insurance) • - Flag of the Ship • A just environment conducive to cooperation

24. INTERCARGO Conclusion • The industry maintains zero tolerance towards accidents. • Progress has been made but more needs to be done. • All Stakeholders must work together in a fair process to achieve safety and environmental protection. • INTERCARGO is committed to this process.

25. INTERCARGO INTERNATIONAL ASSOCIATION OF DRY CARGO SHIPOWNERS Thank you for your attention

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