1. Lars Carlsson Athens, 25 October 2001

2. Shipowners role in the Safety Chain

3. Shipowners role : TOTAL RESPONSIBILITY for his ships !

4.  Introduction to INTERTANKO  Better than Ever  Still Challenges to be met  Responsibility Chain  Quality Quest

5. International Association of Independent Tanker Owners INTERTANKO today 252 Members252 Members 2,063 tankers2,063 tankers 164 million dwt164 million dwt 45 countries45 countries 288 Associate Members288 Associate Members OsloLondonSingaporeWashington

6. Tanker shipping is safer and of higher quality than ever Average age of the fleet is low Double skin tankers are replacing the single hulls ISM and voluntary schemes have improved the skills and the standards of seafarers as well as routines and procedures between ship & shore Better than ever

7. Continuous improvementContinuous improvement Owners strive to meet & exceed the demands of legislators & charterersOwners strive to meet & exceed the demands of legislators & charterers INTERTANKO & OCIMF in DialogueINTERTANKO & OCIMF in Dialogue INTERTANKO / OCIMF work with ClassINTERTANKO / OCIMF work with Class

8. Machinery and system failure 32% Collison / Contact /Grounding 27% Fire / Explosion 21% Hull / Equipment Failure 17% Other 3% Still challenges to be met Tanker Casualties

9. Tanker owners and INTERTANKO are tracking the causes of these accidents. We search co-operation from other organisations and authorities to find efficient solutions for minimising the number of accidents through prevention schemes rather than new legislation Still challenges to be met

10. The Erika Challenge

11. -The Owners - The Class Society - The flag state - Charterers selecting the defect ship

12. “ What we do not achieve today as to safety and quality in transportation, will be forced upon us tomorrow by people less competent and less motivated to make a good job out of it than us ….”

13. VISION for tankers A globally respected and profitable industry based on long term, safe transportation solutions in close co-operation with other links in the safety chain.

14. How ? If you think quality is expensive - try an accident If you think maintenance is expensive - try steel renewal If you think proper ballast coating costs a million dollars more - try a recoating at 12 million

15. The world expects us to have 0 accidents. 99.97% safe transportation means that out of 1.000 tanker liftings 3 will have some problems That will not be accepted! It takes one accident to change the industry

16. Let’s start where it pays best We should concentrate on the ships trading in the most environmentally sensitive areas The Jessica was an old and badly managed ship which spilled oil in the Galapagos. This should never happen again

17. Attention to spill prevention in an American river has got to be stricter than in the open ocean because the consequences are so serious

18. we must try harder to reduce the exposure where it really pays Bosphorus Singapore Straits Tokyo Bay Environmentally sensitive areas – A few examples Delawere River

19. Sensitive areas - definition Vulnerable ecology Confined waters Intense traffic

20. Sensitive areas – proactive measures Traffic control Manoeuvrability criteria Redundancy criteria

21. Environment sensitive areas Support expected from important organisations: INTERTANKO Oil Companies International Maritime Forum International Tanker Owners Pollution Federation International Group of P&I Clubs International Chamber of Shipping AND – we need support FROM YOU

22. Safe Tanker earnings formula Cargo earnings + Safety earnings +++ Economic life ++ Ship price +

23. Responsibility Chain Shipyards and Class Societies Newbuilding standards are often based on lowest permissible standards. Future breakdowns, cracks and failures are planned in the shipyards´ design departments and approved by Class. INTERTANKO and OCIMF together have demanded a dialogue aiming at better standard tankers

24. Responsibility Chain Charterers If the charterers were to select the better ships instead of stating that all approved ships are equally good, they would create a quality competition

25. Responsibility Chain Investors If the investors push shipping companies to reduce their daily running costs to raise the share price, we will see less qualified crews, postponed repairs and other reductions which may contribute to the next Erika type accident A vicious circle where exhausted crews struggling with failing equipment are more likely to make a mistake than crews working with planned and continuous maintenance schemes. And ….

26. Responsibility Chain Investors The warm, cosy feeling of dollar saved…The warm, cosy feeling of dollar saved… … may turn into an Erika type nightmare costing billions… may turn into an Erika type nightmare costing billions

27. Responsibility Chain Owners The owners’ role in the chain... cannot be isolated The behaviour of each link in the chain of responsibility is affected by requirements and actions in the other links If we want an even safer tanker industry - if we want to strike out the risk for new Erika type accidents – we must work together

28. Let us challenge the shipping world to join us in a quality competition ! Shipyards Class Societies Shipowners Charterers Service Industry People

29. Quality Quest : Invitation

30. Evolution Drivers Class Societies Charterers Yards Investors We are good but … we can still improve

31. And above all - let us co-operate to make shipping an accident free business. Zero tolerance for oil spills and loss of lives in the tankers. Let us strive to make ITOPF and Ian White redundant!

32. together with you ! The tanker owners are here to do our share and an even better job