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Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

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Page 1: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

Heidmar Marine Forum March 13, 2013

INTERTANKO OVERVIEW

JOSEPH ANGELODEPUTY MANAGING DIRECTOR

Page 2: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

FIVE YEAR STRATEGIC PLAN

SUSTAINABILITY

PIRACY

BALLAST WATER MANAGEMENT

OCIMF SIRE WG/INTERTANKO VC

ANNUAL TANKER EVENT

Page 3: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

Five-Year Strategic Plan

• Scenario planning looking at macro environment and influences

• Key influences:

Market conditionsGeo-political situation worldwideEnvironmental concerns

• Most likely scenario for the next five years –

Strong environmental concerns within an unstable geopolitical situation

Page 4: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

Five-Year Strategic Plan

Major Issues

• Sustainability • Human Element • Tanker safety and performance• Greenhouse Gas Emission reduction• Air emissions reduction• Ballast water management • Maritime security threats

Page 5: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

Five-Year Strategic Plan

Desired Outcomes

Sustainability

• Members have access to tools, models and information to enable them to continue operating safely

Tanker Safety & Performance

• Members proactively positioned for top performance with regard to safety & performance

Page 6: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

Five-Year Strategic Plan

Desired Outcomes

Human Element

• Criminalization of seafarers• Visas and shore access• Seafarer welfare and fair treatment• Competence• Availability

Page 7: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

Five-Year Strategic PlanGreenhouse Gas Emission Reduction

• Members’ new tankers meet, preferably exceed, required EEDI values and CO2 emission reductions targets

• Development of solid industry practices and a monitoring system relevant to 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

• While legislation on MBMs is not justified at this time, if it were to be implemented, the Association will support/ promote the most practical and transparent MBM alternative at IMO, but not at regional level

Page 8: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

Five-Year Strategic PlanDesired outcomes

Air Emission Reduction• Promote global switch to MGO

• Members fully advised on best choices for compliance with ECA requirements (and on how to assess/select scrubbers)

• Revised EU Sulphur Directive aligned with MARPOL

Ballast Water Management• Members able to achieve compliance with current and

future discharge standards (both regionally and internationally)

Page 9: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

Five-Year Strategic PlanDesired outcomes

Global Maritime Security Threats

• Members suitably informed to protect vessels and crew from maritime security threats

• Key stakeholders develop policies and positions

benefiting the whole industry to ensure freedom of navigation

• Members suitably informed of sanctions that affect their trading patterns to enable them to make informed decisions on lawful trade

Page 10: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

SUSTAINABILITY

INTERTANKO Council (May 2012) agreed to:

1. development of an optimal speed model to show the relationship between the time charter equivalent earnings and CO2 emissions, based on a known freight rate for a specific route and different tanker speeds.

Page 11: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

TC equivalent and emission at various speeds

$/day

7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 15.0 16.0 17.00

8,000

16,000

24,000

32,000

40,000

0

3,000

6,000

9,000

12,000

15,000

CO2 emission

TCE Laden

TCE Ballast

Speed

Assumed market $12,000 per day bunker price $600 per tonne

Tonnes CO2 emisson

Page 12: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

2. expand scope of the INTERTANKO WorldScale Committee to include commercial issues that have an impact on tanker operations, including:

• proper promotion of speed optimization• rising fuel costs• broker’s fees• certain charter party clauses regarding purging

and cargo heating; and • possible decoupling the fuel costs from the

commercial transactions.

Page 13: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

COUNCIL (Nov 2012) agreed that INTERTANKO should develop an action plan to raise the profile of sustainability to the top level of the oil companies’ thinking, and that safety was an essential component of this. It also agreed that the INTERTANKO should continue to engage directly with other stakeholders by holding level meetings.

EXCOM (Feb 2013) general consensus that there is a need for a sustainability campaign. Initial focus should be on practical issues that might be changed in the short term e.g. Worldscale and payment terms. Next steps would be to develop key messages and to identify key areas for the campaign to impact. Submit to Nov 2013 Council meeting for final approval.

Page 14: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

PIRACY - Somalia

2010 Statistics (IMB) - 219 attempted incidents

- 49 hijackings (21% of incidents)

2011 Statistics- 237 attempted incidents- 28 hijackings (11% of incidents)

2012 Statistics- 75 attempted incidents- 14 hijackings (18% of incidents)- 7 commercial ships, 5 dhows, 2 fishing

Page 15: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

IMO Maritime Safety Committee• MSC.1/Circ.1405 – Interim Guidance to Shipowners,

Ship Operators and Ship Masters on the use of Privately Contracted Armed Security Personnel on Board Ships in the High Risk Area

• MSC.1/Circ.1406 – Interim Recommendations for Flag States regarding the use of Privately Contracted Armed Security Personnel on Board Ships in the High Risk Area

• MSC.1/Circ.1408 – Interim Recommendations for Port and Coastal States regarding the use of Privately Contracted Armed Security Personnel on Board Ships in the High Risk Area

IMO

Page 16: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

IMO Maritime Safety Committee• MSC.1/Circ.1443 – Interim guidance to private maritime

security companies providing privately contracted armed security personnel on board ships in the High Risk Area

• MSC.1/Circ.1444 – Interim guidance for flag States on measures to prevent and mitigate Somalia-based piracy (compilation, in a single reference document, the best practices, codes and standards developed by IMO to date)

IMO

Page 17: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

• IMO MSC requests International Standards Organization (ISO) to develop standard for guidelines and the certification of private maritime security companies providing PCASP

• Standard to be based upon MSC.1/Circ.1443 – Interim guidance to private maritime security companies

• ISO Publicly Available Specification (PAS) 28007 developed

• Made available to IMO MSC 91meeting in Nov 2012

ISO

Page 18: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

GUARDCON

• Contract for the employment of security guards on vessels

• Developed by BIMCO to provide clearly worded and comprehensive standard contract to conclude agreements with security services

• Reviewed by INTERTANKO Documentary Committee and endorsed for use by members

Page 19: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

Rules on Use of Force (RUF)

BIMCO Guidance on Rules for the Use of Force (RUF) by Privately Contracted Armed Security Personnel (PCASP)

• adopted after significant consultation with broad industry, insurance and legal sectors

• supplements GUARDCON

100 Series Rules - An International Benchmark for Commercial Maritime Rules for the Use of Force (RUF)

• developed UK attorney • intended to supplement ISO PAS 28007

Page 20: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

West Coast of Africa

2011 Statistics (IMB) - 37 attempted incidents

- 10 hijackings

2012 Statistics (IMB)- 49 attempted incidents- 10 hijackings

2013 Statistics (IMB and Dryad)- 7 attempted incidents- 5 hijackings

Page 21: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

West Coast of Africa

• Piracy off the west coast of Africa is worsening

• Initially, the model is for ships to be taken, barges filled with cargo then ships released

• New name – Extended Duration Robbery (EDR)

• These pirates are much more violent in pursuing their objective

• However, more recently, crew are being taken for ransom

Page 22: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

West Coast of Africa

INTERTANKO action:

• Drafted guidance for Members specific to the piracy problem in West Africa

• Interim guidance issued by RT in Dec 2012• RT letter to IMO Secretary General requesting

matter be brought to the attention of the UN Security Council with a request for assistance to local constabulary activity in the area (Feb 2013)

In addition, UK Foreign Office and OCIMF working together on launching a co-ordination center in the region

Page 23: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

Ballast Water Management

May 2012 - INTERTANKO Council recommends comprehensive document detailing technical, operational and compliance challenges and proposing solution to be sent to IMO and proposing solutions be sent to IMO

August 2012 – Joint submission to IMO’s MEPC 64 co-sponsored with Liberia, the Marshall Islands, Panama, BIMCO, CLIA, INTERCARGO, InterManager, IPTA, NACE and WSC

Page 24: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

IMO MEPC 64 (Oct 2012) Submission

Explains the challenges being faced for effective implementation of the BWM Convention and to provide proposals to address those challenges

Submission covered FOUR key areas:

1. Guidelines for approval of ballast water management systems (G8);

2. Availability of Ballast Water Management Systems (BWMS);

3. Survey and certification requirements

4. Procedures for port State control

Page 25: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

OUTCOME OF MEPC 64

1. Revision of the G8 GuidelinesDecided not to amend the G8 guidelines (at this time), BUT agreed to request BLG subcommittee to develop additional guidelines on the application of the G8 guidelines to address the issues raised in our submission

2. Availability of BWMS Established a correspondence group (lead by Japan) to develop an Assembly resolution regarding the implementation of Regulation B-3

Page 26: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

OUTCOME OF MEPC 64

3. Survey and certification requirements

Agreed with our proposal to issue an MEPC Circular

4. Sampling and analysis procedures for PSC

Agreed with INTERTANKO proposal to instruct BLG (and FSI) Subcommittee that sampling and analysis procedures for PSC should be no more stringent than what is required for type approval of BWMS

Page 27: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

BLG 17 (Feb 2013)Type approval. INTERTANKO joint submission on type approval guidelines accepted. Increased transparency of type approval process and more info provided to ship operators on BWM system capabilities and limitations.PSC procedures. Agreed to undertake a trial period for port state control sampling and analysis. The trial will commence once the BWM Convention has entered into force and will initially run for two years. During trial period, it is agreed that port state control officials will refrain from initiating criminal sanctions against the vessel and its crew should the sampling show that the discharged ballast water does not meet the standards in the BWM Convention.

Page 28: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

BLG 17 (Feb 2013)Assembly resolution on implementation datesAgreement amongst a large majority of the group that there should be an extension of the implementation schedule for existing ships.Opposing views which were almost equally divided as to whether this extension should apply to new ships. Extension being considered for both new and existing ships is to delay the installation dates until the ship’s first renewal survey after the entry into force of the BWM Convention. INTERTANKO will continue to push for the extension to apply to both new and existing ships. 

Page 29: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

OCIMF Sire WG/INTERTANKO Vetting VC

• Initiated by INTERTANKO VC Chairman• Initial focus was “the decline in the use of

the SIRE system by OCIMF members”• Meetings in Nov 2012 and Jan 2013• Issued discussed included:

- Increased sharing of ship inspection statistical data- Improved feedback systems on ship inspections and inspectors

- Development of best practice guidance on important areas of marine risk assurance- Development of matters related to crew competency

Page 30: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

ANNUAL TANKER EVENT

Venue – Grand Hotel, Oslo, Norway

Dates – May 28 – 31, 2013

Events: Executive Committee MeetingCouncil Dinner and MeetingAnnual General MeetingGala DinnerTanker Seminar (Sustainability)Workshops

Page 31: Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference

THANKYOU!!WWW.INTERTANKO.COM