the insurance institute of london
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The Insurance Institute of London. 19 October 2007 Substandard Shipping – Who is Responsible ? Peter M. Swift Managing Director, INTERTANKO. Substandard Shipping - who is responsible ?. Me √ You ? Anyone who tolerates standards below the accepted “norms” ?. - PowerPoint PPT PresentationTRANSCRIPT
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The Insurance Institute of London
19 October 2007
Substandard Shipping –
Who is Responsible ?
Peter M. Swift
Managing Director, INTERTANKO
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Substandard Shipping- who is responsible ?
• Me √
• You ?
• Anyone who tolerates standards below the accepted “norms” ?
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Total Losses by Number(Ships over 100gt)
A “loss” refers to ships damaged beyond economic repairSource: Lloyd’s Register Fairplay
1997 1998 1999 2000 2001 2002 2003 2004 2005
0
50
100
150
200
250
300N
um
ber
of
Sh
ips
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Number of Bulk Carrier Losses 1996 - 2005
0
2
4
6
8
10
12
14
16
18
20
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Year
No
. of
Lo
sse
s
Number of losses by structural failureTotal number of losses
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Source: ITOPF. Number of spills above 700 tonnes.
Development of Oil Spills
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0
5
10
15
20
25
30
35
1971-75 1975-80 1981-75 1986-90 1991-95 1996-00 2001-05
Pollution from tankersTonnes / billion tonne mile
Tanker accidental pollution rate tonnes spilt per bn tonne miles trade
Source: ITOPF spills, Fearnleys: Tonne miles
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0
200
400
600
800
1000
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
WarHull & MachineryFire/Explosion
Grounding Collision/ContactOther
Reported tanker incidents(1978 – 2005)
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Safely and Reliably
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Cost Effectively
Freight rate and oil price (USD/bbl) deflated by the US consumer price indexFreight rate and oil price (USD/bbl) deflated by the US consumer price indexOil price 2006 is approx price end April and not average price for the year.Oil price 2006 is approx price end April and not average price for the year.
0
10
20
30
40
50
60
70
80 Nominal priceArabian Light
Real PriceArabian Light
Nominal freightrates PG-West
Deflated freightRates PG-West
Oil price and tanker freight rate 1976-2006Oil price and tanker freight rate 1976-2006
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Shipping Industry Performance
• Is a record of “continuous improvement”
• But the industry is not complacent !
and is
• “Striving for Zero”Zero fatalities, zero pollution, zero detentions
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Shipping Industry : A record of“continuous improvement”
Q: How has this been achieved ?
A: A combination of Regulation and Self-Regulation
Although difficult to prove !
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“Good” Regulation AND
Industry Best Practice
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Industry works to encourage“Effective” Regulation
• Developed at the global level, wherever appropriate (consistent with existing law)
• Fit for purpose (provides solutions)• Properly considered (stakeholders
involved)• Impact(s) fully assessed (economic and
social)• If adopted, implemented uniformly and
promptly
Engaging with legislators, regulators, politicians and the media
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Industry works to develop and promote “Self Regulation”
• Adopting “best practices”
• Producing industry guidelines• Developing programmes, procedures,
etc. - Design, Shipbuilding, Operations, Training, Inspections, Investigations and more…
Engaging with partners, legislators, regulators, politicians, media and public
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EXAMPLES of Industry’s Quality Initiatives
Tripartite dialogue: owners, builders and class:– Common structural rules– Coatings and coating performance standards– Goal Based Standards (Tiers IV & V)– Information sharing – Shipboard waste management
Inter-Industry Group (Chemical Tanker accidents):– Inert Gas for CT on presently exempted ships– Human Element Task Force
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EXAMPLES of Industry’s Quality Initiatives
Industry Guides:– Flag State Performance– Recycling guidelines– ISGOTT– Newbuilding Awareness guide– Model Ballast Water Management plan– Garbage Management plan– ISO 14001 planning– Oil record book completion, OWS guidance– Mooring, STS, COW, etc. – ………
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EXAMPLES of Industry’s Quality Initiatives
Industry practices:– Ship vetting (owners & charterers)– Management self-assessment programmes– Terminal vetting– VOC control on passage (VOCON)– Casualty reporting– PSC record analysis– ………..
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EXAMPLES of Industry’s Quality Initiatives
Industry-Government Programmes– Marine Electronic Highway– Pilotage User Group (Denmark)– Reception Facilities Forum– Double Hull Panel (EMSA)– ………
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EXAMPLES of Industry’s Quality Initiatives
“Ahead of” regulatory implementation:– Annex VI (Nox & Sox, VOC)– Anti Fouling Systems (TBT Ban)– Fixed Gas detection systems (Ballast tanks)– Cargo tank coatings– IG on smaller chemical tankers– BW management trials– OWS alternatives– Green Passport and HMI standards– ……….
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Substandard Shipping- who is responsible ?
What can we (all) do ?
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BUILDERS
MANAGERS
EQUIIP SUP
CLASS
FINANCIERS
CARGO
BROKERS
P&I
HULL INSR
FLAG STATECOASTAL STATE
WATERWAYSPORTTERMINALS
BUNKERERSPILOTS
TUGS
LABOUR
CREW
AGENTS
REPAIRERS
SALVORS
INCIDENT MGT
SHIPBREAKERS
EDUCATIONTRAINING
DESIGN
OWNER OPERATOR
STAKEHOLDERS AGENCIES GOV IMO STATES LOCAL GOV
CARGO
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Poseidon Challenge- commitment to continuous improvement- commitment to working with all partners
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Substandard Shipping- what can we do ?
Final thoughts:
• Can we live with differentiated standards ?
• How can we share information more effectively across the maritime communities ?
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EQUASIS Information System
The principles behind Equasis:
• A tool aimed at reducing substandard shipping (limited to safety-related information).
• An international database covering the whole world fleet.
• Involvement of ALL players involved in the maritime industry.
• A tool to be used for the better selection of ships• The promotion of the exchange of unbiased information
and transparency in maritime transport (- to be better informed about the performance of ships and maritime organisations).
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Learning from Tanker incidents: 2005OR NOT ?
Hull & Machinery
Fire & Explosions..
GroundingCollision*
Miscellaneous
*includes contact
dwt range Total
Below 10,000 69
10-29,999 34
30-99,999 40
100,000+ 18
Total 161
Age Total
Built 1970s 25
Built 1980s 51
Built 1990s 56
Built 2000s 29
Total 161
Total 161
29 engine, 3 hull
9%
33%4%
33%
20%
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THANK YOUwww.intertanko.com
www.shippingfacts.comwww.themaritimefoundation.com
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International Association of Independent Tanker Owners
Represents responsible oil and chemical tanker owners worldwide, promoting their interests and providing members
with technical, operational, legal, documentary and other support services, information and advice.
250 + members representing > 80% of the independent oil tanker fleet and > 85% of the chemical carrier fleet, with
strict membership criteria 300 + associate members in oil and chemical tanker related
businesses
15 Committees - 4 Regional Panels
Representative Offices in Europe, US and Asia
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Mission and Vision
MISSION “Provide leadership to the Tanker Industry in
serving the world with the safe, environmentally sound and efficient seaborne transportation of oil,
gas and chemical products.”
VISION FOR THE TANKER INDUSTRY“A responsible, sustainable and respected Tanker Industry, committed to continuous improvement
and constructively influencing its future.”
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One of the Association’s primary goals:
Lead the continuous improvement of the Tanker Industry’s performance in striving to achieve the goals of:
Zero fatalitiesZero pollution
Zero detentions