INTERTANKO Seminar Madrid 2 December 2004 Peter M Swift

1. INTERTANKO Seminar • Madrid • 2 December 2004 • Peter M Swift

2. Antitrust Compliance StatementINTERTANKO is firmly committed to maintaining a fair and competitive environment in the world tanker trade, and to adhering to all applicable laws which regulate INTERTANKO’s and its members’ activities in this market. These laws include the antitrust laws, which the US, the European Economic Community and many nations of the world have adopted to preserve the free enterprise system, promote competition and protect the public from monopolistic and other restrictive trade practices. This meeting will be conducted in compliance with INTERTANKO’s antitrust guidelines .

3. 2005 : DATE FOR THE DIARY April 10-13 Athens Council, Annual Tanker Event, AGM

4. Council Agenda – Amsterdam, Oct. 2004 • IOPC Conventions • Maritime Security • Goal Based Standards • Chain of Responsibility • Massachusetts State Law • Air Emissions Regulations • Committee Reports – Vetting, Chemical, other • Membership criteria – Ship Managers • Membership drive • Alliances & cooperation with other Associations • 2005 Budget and Fee Structure

5. INTERTANKO’s Vision for the tanker shipping industry:“ A responsible, sustainable and respected industry able to influence its own destiny.”

6. Major Issues for the Tanker Industry • Liability limitations under threat • Criminalisation for pollution incidents • Common Structural Rules for Tankers • Maritime Security • Phase-out uncertainties • Recent chemical tanker accidents • Challenges to the international regulatory structures

7. Phase out tankers - dwt

8. The changing maritime landscape • Politicization of technical regulation • Threat to authority of IMO • Threat to international law • Criminalisation of companies and seafarers

9. Our AIMS / Key industry goals • Regulatory environment which supports safe shipping operations, environmental protection and adherence to internationally adopted standards and procedures • Properly considered international regulation of shipping • Global regulation for a global industry

10. Increasing politicization of regulation Examples: • Phase out of single hull tankers • West European Particularly Sensitive Sea Area • Moves to open up CLC/FUND and link with substandard shipping • Maritime security (e.g hijacking of AIS) Why? Port states versus flag states, and reduced influence of maritime constituency

11. HOW IT WAS: Examples of positive regulatory developments (the “IMO spirit”) • ISM Code and STCW (training) • post ‘Estonia’ passenger ferry measures • IMO bulk carrier safety package • Development of ILO ‘Super Convention’ Outcomes broadly based on technical merits of arguments put forward. Industry viewpoint understood, if not always accepted.

12. HOW IT IS: The Challenges Today • More political drivers and less consideration of the technical, operational, and commercial interests • More unworkable, inconsistent and illogical regulation and less consideration of the practical aspects • More pressure for local / regional regulation and less willingness to adopt and apply international regulation

13. Threat to authority of IMO Global industry needs global regulation • IMO agreed to acceleration of single hull phase-out (twice), but under duress • EU Directives going beyond MARPOL • Interference of UN in New York – genuine linkage to flag

14. CHALLENGES TO 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 / Air Emissions – EU, USA vs. IMO • Security – MTSA vs. ISPS • Ballast Water Management – US et al vs. IMO

15. Threat to international law • Escorting of single hull tankers out of EEZ by Spain, France et al, in contravention of MARPOL and UNCLOS obligations • Detention of seafarers, e.g. in Spain and Pakistan in contravention of UNCLOS • European Commission suggestion that UNCLOS might be revised to alter the balance between flag states and coastal states. • Willingness of EU to implement measures in conflict with MARPOL

16. Criminalization • Imprisonment of seafarers (Captain Mangouras) • Activities of US Department of Justice (bounty for whistle blowers) • EU Directive on Criminal Sanctions (including accidental damage) • SUA (Suppression of Unlawful Acts) Convention

17. Action in Brussels • Dutch Presidency, New Commissioner and Commission staff, New Parliament and MEPs • Sulphur levels in fuels still a major issue • EMSA Double Hull panel making progress ? • New Maritime safety Package under discussion – “Erika III”

18. Brussels - The main ”players” Commission (The executive) EMSA European Parliament (Direct election) Council (Member States)

19. EU Maritime Safety Package • Marine Casualty Investigations in the EU • Amendment to Directive on Vessel Traffic Monitoring and Information • Liability and Compensation • Flag State Initiative • Recasting of Legislation on Port State Control • Maritime Labour Standards But how about earlier programmes – Places of Refuge, Ratification of Conventions, Alignment of EU Regulations with IMO revisions ?

20. Action in the US • Increasing support for signing UNCLOS • Presidential support for ratification of Annex VI • Overturning of proposals for escort tugs BUT • Pressure at state and federal level for regulation of Air emissions, Ballast Water controls, Spill response and more • Massachusetts State Law

21. Action at the International Level • Ratification of Key Conventions: HNS / Bunker Convention / HNS-OPRC Protocol / AFS • Action on: Places of Refuge / Port Reception Facilities / Annex VI • Support for FLAG STATE AUDIT

22. 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

23. Round Table Cooperation

24. www.shippingfacts.com

25. INTERTANKO News • Pro-active Environmental Programme • New Charter Party Clauses • New Publications • Q88 going from strength to strength • Terminal Vetting Database going strong • “Image” programme

26. INTERTANKO’S ENVIRONMENTAL PROGRAMME • Port Reception Facilities – Forum, IMO and EU • Recycling – renewed challenges for industry • Ballast water management – a difficult road ahead • Air emissions under review around the world

27. Recently published INTERTANKO charter party clauses • Maritime Security Clauses for Time and Voyage Charters • Material Safety Data Sheets (MSDS) Clause • Port Costs Worldscale clause

28. Hot off the Press • A 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 • Tanker Bills of Lading - A Practical Guide

29. Popular Publications- firm favourites • Tanker Specification Awareness Guide • A Guide to the Vetting Process, 5th. Edition • A Guide to Tanker Charters (2001)

30. In the Pipeline • Guiding Principles to Emergency Management and Crisis Communications - available imminently

31. Q88 • Tanker questionnaire generator • New service for members

32. THE “IMAGE” DEBATE • Raising awareness - public, media, politicians & regulators; www.shippingfacts.com • Meeting the Press – mainstream & shipping • Improved preparedness for incident management • Education initiatives – Maritime Industries Foundation

33. Muchas gracias Thank you www.intertanko.com www.shippingfacts.com

34. Accidental oil pollution from tankers and seaborne oil trade ’000 tonnes Bn tonne-miles

35. Tanker incidents 2003 - 130

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