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INTERCARGO International Association of Dry Cargo Shipowners

INTERCARGO International Association of Dry Cargo Shipowners. Bulk Carrier Benchmarking Mr Rob Lomas 13 October 2006. INTERCARGO Dry Bulk Association Member of the Round Table Associate Member - Intermanger Represents about 800 bulkers and increased membership (130 full and associate)

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INTERCARGO International Association of Dry Cargo Shipowners

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  1. INTERCARGO International Association of Dry Cargo Shipowners Bulk Carrier Benchmarking Mr Rob Lomas 13 October 2006

  2. INTERCARGO • Dry Bulk Association • Member of the Round Table • Associate Member - Intermanger • Represents about 800 bulkers and increased membership (130 full and associate) • Common challenges – quality, safety, responses to regulation

  3. INTERCARGO Benchmarking ethos Should we publish ? • How do stakeholders perceive us? • Stronger demands for transparency • Adequacy of existing information sources – data presentation issues; margin of error • Portraying our members as higher quality • Targeting becoming more important

  4. INTERCARGO • Port State Control analysis of one sector • Extensive statistical analysis – c 6000 bulkers • Analysis of flag, class, owner • “Deficiencies per inspection” correlates with ad-hoc quality definitions

  5. INTERCARGO PSC BENCHMARKING DOCUMENT A : Statistical information (10,000 dwt +) B : PSC Data (Paris / Tokyo / US CG) C : Benchmarking Data D : Further information / recommendations Intercargo Executive Committee meeting on 9 October 2006 – concerns with corruption and uniformity of inspection

  6. INTERCARGO THE FINDINGS Statistics • Fewer dry bulk vessels than thought on “at least one inspection in Paris/Tokyo MoU / US CG areas in 3 years” basis • 6000 vessels; 1200 companies; growth in “Intermanager” controlled bulkers

  7. FINDINGS – PSC Detentions - main Fire fighting : 1st : 598 ISM / Certificates : 2nd : 539 Lifeboats : 3rd : 425 10 other categories – note, serious structural - 149 Many detentions immediately pre-post vessel sale FINDINGS Owners – casualties Context – declining casualties :- 2005 – 6 losses / 1 structural / 0.974 per 100 ships 2004 – 5 / 1 / 1.154 2003 – 4 / 0 / 1.389 …. 1996 – 14 losses INTERCARGO

  8. INTERCARGO Owners Benchmarking Matrix • Deficiencies per inspection (median : 2.44; average owner scored 3.57; Intercargo entered vessel – 2.11) N 90-100 (worst) 7.2 to 41 80-89 5.25-7.69 B- 70-79 4.03-5.23 60-69 3.14-4 50-59 2.45-3.12 B+ 40-49 1.94-2.44 30-39 1.51-1.93 20-29 1.13-1.5 10-19 0.62-1.12 1-9 (best) 0-0.61 • Large “Intermanager”-style third party shipmanagers perform well on quality

  9. Benchmarking Class 2.93 deficiencies per inspection with IACS entered ships; 8.71 for non IACS Intercargo only approves IACS Benchmarking Flag Can only recognise historical performance (2003-2005) Credit for improvements – especially Cyprus Flags outperforming market share included – Panama (+2.22%); Hong Kong (4.82%); Liberia (0.77%); Bahamas (2.25%) INTERCARGO

  10. INTERCARGO Benchmarking – age • Vessels in 22-30 year old range comprise 29% of the fleet but had 53% of the detentions • There are good, older ships but PSC inspectors target older vessels.

  11. INTERCARGO • Benchmarking – Human Element • It is not only the BAD owners which have collisions and groundings but also the GOOD • Collisions 2005 : “A” and B+ managers had 61% of the collisions but comprised 39% of total. • Groundings 2005 : ditto 54% / 39 % • Inference that training requires further attention

  12. INTERCARGO CONCLUSION … FURTHER ACTION • ISM failings to be corrected • Owners should divert attention to detail – certification, minor fire / lifeboat issues • Stakeholder involvement essential • Human Element – the challenge for the good owners • Target corruption

  13. INTERCARGO INTERNATIONAL ASSOCIATION OF DRY CARGO SHIPOWNERS Thank you for your attention www.intercargo.org info@intercargo.org www.shippingfacts.org

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