1. WELCOME The U.S. Industrial College of the Armed Forces Minerva Alfonso UK Regional Manager London, 3 May 2007

2. International Association of Independent Tanker Owners Membership: 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

3. Public Perception of Shipping –Negative perception by the general public and regulators –Partly due to the media only focusing on shipping incidents and the shortcomings of the industry –But also historically, the tanker industry itself has tolerated inadequate standards

4. Source: ITOPF. Number of spills above 700 tonnes. Record of Oil Spills

5. 1970 – 1980: major oil spills The industry has paid a high price for this laissez- faire attitude Understandably, these major incidents generated public outcry Which resulted in a welter of new regulations covering tanker safety and pollution prevention Unfortunately, even if the industry has quietly made advances, the negative perception remained

6. Major Challenges Proliferation of unilateral regulations Global regulation for a global industry, adopted and implemented uniformly National and regional regulations threaten the supremacy of the International Maritime Organization. (IMO)

7. Major Challenges Unilateral regulations - in the U.S. Individual states vs federal regulations INTERTANKO U.S. Supreme Court victory against the State of Washington in March 2000, a significant milestone  INTERTANKO had argued to the Supreme Court that the individual states in the US had no Constitutional right to regulate matters of vessel design, construction, alteration, repair, maintenance, operation, equipment, personnel qualifications and manning.  Unanimous 9-0 decision of the Supreme Court Justices in favour of the INTERTANKO position

8. Commitment to Continuous Improvement 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

9. Poseidon Challenge: An invitation to - commit to continuous improvement - commit to working with all partners

10. Poseidon Challenge Careful analysis of tanker casualties showed that there were always many more than one factor contributing to each particular accident. This is best illustrated the Responsibility Chain, which depicts how other responsible parties can help to raise the safety standards and contribute to a minimisation of the extent and the number of oil spills. INTERTANKO works closely with the US coast guard and in April 1998, INTERTANKO signed a partnership agreement with them.

11. ISSUE OF PIRACY AND ARMED ROBBERY

12. Piracy trends: 1995-2006 Source: International Maritime Bureau (IMB)

13. Reasons for the downward trend a) increase in the level of awareness of the crew when transiting hot spots areas and b) due to increased international pressure, the number of patrols have increased in previous hotspots areas like Indonesia and Malaysia Although there is a downward trend in the number of attacks, the nature of attacks had become more severe. 1 May 2007: Chevron’s Floating Storage and Offloading (FSO) facility was boarded by militants, and six expatriate employees were kidnapped earlier today. The nationalities of the hostages are 4 Italians, 1 Croatian and 1 American

14. Types of violence to crew by location: 2006 Source: International Maritime Bureau (IMB)

15. Top 9 hot spots representing 75% of total reported incidents in 2006. Source: International Maritime Bureau (IMB)

16. International Treaties Geneva Convention on the High Seas of 1958 and repeated in the UN Convention on the Law of the Sea of 1982 Piracy (UNCLOS) Art 105, piracy is considered an international crime and endow all States with the right to take enforcement measures for the suppression of piracy, thus restricting the flag state principle.

17. UNCLOS Article 101 Definition of piracy In order to be considered an act of piracy the following 5 elements should be fulfilled: 1.Illegal act of violence such as robbery, murder, assault, rape 2.Motivated by private gains 3.Committed by persons on board a private ship 4.Directed against another vessel 5.High seas or outside any States jurisdictions

18. UNCLOS Limitations 2 ships rule – attacks by crews / stowaways not included Motivated by private gains – political terrorist type attacks not covered Most attacks happen in territorial waters; therefore acts are not punishable under Art 105. Article 111. Right of Hot Pursuit.

19. Jurisdiction in the Malacca and Singapore Straits

20. SUA Convention Italian cruise liner Achille Lauro 7 Oct 1985 4 armed stowaways hijacked the ship and killed one American passenger (2 ships rule not fulfilled under UNCLOS) In Egyptian waters (UNCLOS Art. 101 piracy definition only applicable to high seas attack) Led to the promulgation of the SUA Convention (Suppression of Unlawful Acts Against the Safety of Maritime Navigation) or more commonly known as the Rome Convention convention in order fill the gaps left by UNCLOS.

21. Limitations of the SUA Convention Only applicable within the jurisdiction of States party to it the decision by the parties to enforce the Rome Convention is ultimately discretionary The Convention does not provide for any sanctions against parties who fail to fulfil their treaty obligations

22. CONCLUSIONS INTERTANKO is deeply concerned over the trend of piracy in the past several years as it constitutes an extremely grave threat to the lives of the crews and the safe operation of ships. International agreements (i.e. UNCLOS and 1988 SUA Convention) that deal with piracy and other acts of maritime violence seem inadequate as a legal basis to protect our crews and ships from such acts. One of the major deficiencies of the international rules under the Geneva Convention and UNCLOS is their narrow definition of piracy.

23. CONCLUSIONS The lack of ratification of the SUA Convention by countries as well as the lack of proper implementation of these treaties by some party states, mean that the agreement is virtually inapplicable in some areas, and some attacks may go unpunished. I hope my presentation highlighted the vulnerability of our seafarers to the hostile acts of opportunistic pirates. It is really up to us working ashore to support them.

24. THANK YOU www.intertanko.com www.themaritimefoundation.com www.shippingfacts.com