“TANKER STANDARDS &BEST PRACTICES”

18 November 2010

Peter M Swift,MD INTERTANKO

“TANKER STANDARDS &BEST PRACTICES”

• INTERTANKO Today

• An industry under the spotlight

• Restoring reputation and credibility

• Improving performance

• Championing Best Practices

• Cooperation is key

• Challenges ahead

INTERTANKO Today

250 + members operating ca. 3,100 ships > 75% of the independent oil tanker fleet and > 85% of the chemical

carrier fleet

300 + associate members: in oil and chemical tanker related businesses

[With strict membership criteria]

15 Committees – 5 Regional PanelsPrincipal Offices – London and Oslo

Representative Offices in US, Asia and BrusselsObserver Status at IMO, IOPC, UNFCCC, OECD and UNCTAD

International Association of Independent Tanker Owners

INTERTANKO’s Strategic Objectives

To develop and promote best practices in all sectors of the tanker industry, with owners and operators setting the example.

To be a positive and proactive influence with key stakeholders, developing policies and positions, harmonising a united industry voice, and engaging with policy and decision makers.

To profile and promote the tanker industry, communicating its role, strategic importance and social value.

To provide key services to Members, with customised advice, assistance and access to information, and enabling contact and communication between Members and with other stakeholders.

Tanker Industry is accustomed to being under the spotlight

Restoring damaged reputations

Industry led moves on:• ESP / CAS• CSR for tankers • Industry guidelines on tanker maintenance and

repair procedures• COT corrosion• VOC control

While EU stirred and IMO responded:• Accelerated phase-out• Restrictions on HFO carriage• Increased liability limits

Improvements followed, but then……

Number incidentsNumber incidents

Based on data from LMIU, ITOPF + othersBased on data from LMIU, ITOPF + others

‘‘000 ts pollution000 ts pollution

0

210

420

630

840

1050

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 06 07 08 09 10

0

120

240

360

480

600

Misc/Unknown

Fire/Expl

Hull & Machinery

Grounded

Coll/Contact

Oil pollution

2010 projection based on 110 days

Tanker Incidents and accidental pollution

Increasing number of incidents prompted ………

• Examination of crew competency standards• [Within INTERTANKO Tanker Officer Training Standards]• OCIMF’s TMSA

+ Attention to many other issues• Lifeboat safety (Lifeboat user group)• Chemical carrier safety – extended IG application, tank

cleaning standards, ….• Terminal safety – terminal vetting database• Fuel switching hazops and Fuel quality reviews• Engineering guidelines/training• Pilotage user groups• Tripartite discussions between owners, builders and class• ILO – MLC compliance+ Pro-active on environmental challenges – on reception

facilities, anti-fouling, recycling, fuel standards …….

Industry is setting standards and best practice guidance on key issues of the day

GHG emissions • OCIMF’s Energy Efficiency & Fuel Management

Guidelines• INTERTANKO’s TEEMP• Industry’s emission reduction potential studies• OCIMF/INTERTANKO - Virtual Arrival

and Piracy• BMPs / MNLOs / SHADE• In-built design protection measures • ………

Improved performance has resulted- e.g. in oil pollution performance

Based on ITOPF/FearnleysBased on ITOPF/Fearnleys

1000 ts spilt

0

700

1,400

2,100

2,800

3,500

1970s 1980s 1990s 2000s

0

21

42

63

84

105

1000 ts spilt

'000 bntonne-miles

- 63% -3% -83%

1000 bn tonne miles trade

Development and implementation of best practices benefits from cooperation

Working with like-minded partners, committed to continuous improvement

Still many challenges remain

• Manning – shortages and competency standards

• Ensure consistency and uniformity in global governance structures and standards

• Improve feedback mechanisms and information sharing

• AND More….

Environmental Challenges – local impacts and global standards

Life cycle: Building to Decommissioning/recycling

ODS = OzoneDepleting Substances

NOx, SOx, PM

SewageGarbage

Accidental oil pollution Ballast water

ToxicAntifouling

CO2/GHG emissions

VOC = VolatileOrganicCompounds

Noise

Noise

Biofouling

Cetaceanstrikes

Thank you

For more information, please visit:www.intertanko.com

www.maritimeindustryfoundation.com

www.shipping-facts.com

FOR INFO ONLY : Sharing Information – Tanker incidents in 2009

Based on data from LMIU + othersBased on data from LMIU + others

Groundings 22%

Fire & explosions, 7%

Hull & Machinery

28% 82 incidents53 engine

related

Misc, 17%

Collision contact 26%

Collision/contact Grounding Fire/Explosion Hull & machinery Misc/unknown

FOR INFO ONLY : Tanker hull & machinery incidents

Number of MACHINERY incidentsNumber of MACHINERY incidents

Based on data from LMIU, ITOPF + othersBased on data from LMIU, ITOPF + others

Year <10 years 10-24 years >25 years TotalAverage

age

2002 4 15 3 22 17.5

2003 3 8 3 14 18.4

2004 2 7 2 11 18.8

2005 9 20 5 34 17.6

2006 12 17 3 32 14.3

2007 20 25 3 48 13.2

2008 25 24 10 59 15.6

2009 18 22  13 53 16.7

Total 93 138 42 273 15.6

FOR INFO ONLY : The Tanker Industry Today

Tanker Industry’s Goals

are aligned to those of the IMO

• Safe and secure • Environmentally

responsible• Reliable• Efficient (Low cost)