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Leading the way; making a difference Gallagher Marine Systems Seminar July 24, 2013 INTERTANKO’S MAIN ISSUES JOSEPH ANGELO DEPUTY MANAGING DIRECTOR.

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Presentation on theme: "Leading the way; making a difference Gallagher Marine Systems Seminar July 24, 2013 INTERTANKO’S MAIN ISSUES JOSEPH ANGELO DEPUTY MANAGING DIRECTOR."— Presentation transcript:

1 Leading the way; making a difference Gallagher Marine Systems Seminar July 24, 2013 INTERTANKO’S MAIN ISSUES JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

2 Leading the way; making a difference INTERTANKO 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

3 Leading the way; making a difference PRIMARY GOAL Lead the CONTINUOUS IMPROVEMENT of the Tanker Industry’s Performance in striving to achieve the Goals of: Zero Fatalities Zero Pollution Zero Detentions

4 Leading the way; making a difference MEMBERSHIP is open to independent tanker owners and operators of oil and chemical tankers (i.e. non-oil companies and non-state controlled tanker owners) who meet the membership criteria. ASSOCIATE MEMBERSHIP is available to any entity with an interest in the shipping of oil and chemicals.

5 Leading the way; making a difference MEMBERSHIP 220+ Members 3,200+ Tankers 280+ Million DWT Members in 40+ countries MORE THAN 70% OF THE INDEPENDENT TANKER FLEET 300+ Associate Members

6 Leading the way; making a difference SUSTAINABILITY BALLAST WATER MANAGEMENT PIRACY GREENHOUSE GAS TANKER VETTING 2014 ANNUAL TANKER EVENT MAIN ISSUES

7 Leading the way; making a difference TANKER SUPPLY

8 Leading the way; making a difference axes Accumulated losses VLCCs, Suezmaxes & Aframaxes

9 Leading the way; making a difference May 2012 – INTERTANKO Council agreed to: 1. Development of an optimal speed model to show the relationship between the time charter equivalent earnings and CO 2 emissions, based on a known freight rate for a specific route and different tanker speeds SUSTAINABILITY

10 Leading the way; making a difference TC equivalent and emission at various speeds $/day Tonnes CO2 emission

11 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 SUSTAINABILITY

12 Leading the way; making a difference Nov 2012 – COUNCIL agreed that INTERTANKO should develop an action plan to raise the profile of sustainability to the top level of the oil companies Feb 2013 – EXCOM agreed that there is a need for an INTERTANKO sustainability campaign. 1. Initial focus should be on practical issues that might be changed in the short term 2. Next steps to develop key messages and to identify key focus areas for campaign 3. Submit to Nov 2013 Council meeting for approval SUSTAINABILITY

13 Leading the way; making a difference May 2013 – INTERTANKO COUNCIL agreed that INTERTANKO should: 1. Develop a Code of Conduct on Tanker Chartering – a best practice guide - Payment of freight and demurrage - Vetting procedures - Brokers role 2. Send letter from Chairman to oil majors 3. Establish late payment database 4. Work on Vetting inspection costs 5. Expand message to wider audience SUSTAINABILITY

14 Leading the way; making a difference Ballast Water Management May INTERTANKO Council recommends comprehensive document detailing technical, operational and compliance challenges and proposing solution to 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

15 Leading the way; making a difference INTERTANKO (Etal) 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. 1.Guidelines for approval of ballast water management systems (G8); 2. 2.Availability of Ballast Water Management Systems (BWMS); 3. 3.Survey and certification requirements 4. 4.Procedures for port State control IMO MEPC 64 (Oct 2012)

16 Leading the way; making a difference 1.Revision of the G8 Guidelines Decided 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 OUTCOME OF MEPC 64

17 Leading the way; making a difference 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 OUTCOME OF MEPC 64

18 Leading the way; making a difference 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 2-3 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. OUTCOME OF BLG 17 (Feb 2013)

19 Leading the way; making a difference Assembly resolution on implementation dates – correspondence group outcome Agreement amongst a large majority of the group that there should be an extension of the implementation schedule for existing ships Opposing views almost equally divided as to whether this extension should apply to new ships Extension considered for both new and existing ships was to delay the installation dates until the ship’s first renewal survey after the entry into force of the BWM Convention.

20 Leading the way; making a difference 1. BWMS Type Approval Approves both type approval certification documents and guidance to administrations on the type approval process resulting in more information being provided to ship owners on the capabilities of the BWMS as well as the ranges/limiting conditions in which BWMS can operate 2. Port State Control Procedures Approves trial period (2-3 years) for PSC sampling, during which PSC will not detain or criminalize on the basis of a failed discharge test, providing the BWMS is being operated according to the type approval and manufacturers requirements (US reserved its position) OUTCOME OF MEPC 65

21 Leading the way; making a difference 3. Implementation Dates for installing BWMS - Agree to a draft Assembly resolution recommending governments implement the Convention based on the entry into force date of the convention, as opposed the dates currently provided in the IMO BWM Convention. - The new installation schedule considers ALL vessels constructed before entry into force as existing vessels. - These existing vessels will then have until their first renewal survey (IOPP Certificate under Annex I of MARPOL) after entry into force of the BWM Convention to install a BWMS. OUTCOME OF MEPC 65

22 Leading the way; making a difference Final regulations issued March 2012 Main requirements include: – BWM plan and record keeping – BWM standard (same as IMO), review in 4 yrs – Compliance schedule (similar to IMO), (no intent to align schedule with Assembly resolution) – Acceptance of “Alternative” BWMS for 5 years (13 BWMS accepted under AMS) – BWMS not required if no discharge in US waters – New ships (12/1/13) may request an extension USCG BWM Requirements

23 Leading the way; making a difference Vessel General Permit (VGP) Dec 2008 – BWM plan and record keeping; – BWM exchange; – Allows states to impose additional requirements; New VGP issued March 28, EIF Dec 19, 2013 – BWM Standard the same as USCG – Implementation dates the same as USCG – No EPA approval process for BWM systems – No extensions for new ships (??) US EPA VGP BWM Requirements

24 Leading the way; making a difference PIRACY - Somalia 2011 Statistics (IMB) attempted incidents - 28 hijackings 2012 Statistics - 75 attempted incidents - 14 hijackings - 7 commercial ships, 5 dhows, 2 fishing 2013 Statistics (thru July 15) - 9 attempted incidents - 2 hijacking ( 2 dhows)

25 Leading the way; making a difference Significant reduction of piracy incidents off Somalia Better industry compliance with BMP4 Enhanced military strategy and tactics Enhanced use of armed guards

26 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

27 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

28 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 Specification published Dec 20, 2012 Independent third party certification of PCASP under way in various countries ISO

29 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

30 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) development of ISO standard underway intended to supplement ISO 28007

31 Leading the way; making a difference West Coast of Africa Piracy off the west coast of Africa is worsening First six months of 2013 (IMB) - 31 incidents - 4 hijackings - 56 hostages taken Initially, the model is for tankers 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 Most recent hijacking (5 th ) last week off the coast of Gabon while waiting to berth at Port Gentil

32 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

33 Leading the way; making a difference EEDI & SEEMP mandatory since 1 Jan 2013 Market Based Measures – No progress New Initiative – Operational efficiency or Monitoring, Reporting & Verification (MRV) USA – submission at MEPC 64 (Oct. 2012) EU – Stakeholders Meeting on (Dec 2012) Some countries working jointly to develop new approach – USA and EU part of the group GREENHOUSE GAS EMISSIONS

34 Leading the way; making a difference OPERATIONAL EFFICIENCY (US) – Three phases 1. 1.Data collection to determine the baseline 2. 2.Trial period to establish practical rating system 3. 3.Required operational efficiency scheme EUROPEAN COMMISSION APPROACH 1. 1.Develop details of “monitoring, reporting and verification (MRV) system” 2. 2.Finalize obligatory measuring, reporting and verifying of maritime CO2 emissions after 2013 NOTE : MRV system is essentially the same as Phase 1 and part of Phase 2 of Operational Efficiency

35 Leading the way; making a difference INTERTANKO Council agreed (May 3013) Support the MRV concept in principle Continue assessments on the best possible model Ship’s efficiency is the best method of measuring performance improvement with fuel consumption being the critical parameter Collect data from Members on annual fuel consumption of their tankers Collect additional data which would assist in determining the best INTERTANKO definition of ship’s efficiency when assessing the various proposals (i.e. time and distance in laden and ballast voyages, cargo amount, etc.

36 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 TANKER VETTING

37 Leading the way; making a difference 2014 ANNUAL TANKER EVENT Venue – New York City Dates – May 5 - 9, 2014 Events:Executive Committee Meeting Council Dinner and Meeting Annual General Meeting Gala Dinner Tanker Seminar

38 Leading the way; making a difference THANK YOU!!WWW.INTERTANKO.COM


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