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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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Presentation on theme: "The Insurance Institute of London 19 October 2007 Substandard Shipping – Who is Responsible ? Peter M. Swift Managing Director, INTERTANKO."— Presentation transcript:

1 The Insurance Institute of London 19 October 2007 Substandard Shipping – Who is Responsible ? Peter M. Swift Managing Director, INTERTANKO

2 Substandard Shipping - who is responsible ? Me √ You ? Anyone who tolerates standards below the accepted “norms” ?

3 Total Losses by Number (Ships over 100gt) A “loss” refers to ships damaged beyond economic repair Source: Lloyd’s Register Fairplay 199719981999200020012002200320042005 0 50 100 150 200 250 300 Number of Ships

4 Number of Bulk Carrier Losses 1996 - 2005 0 2 4 6 8 10 12 14 16 18 20 1996199719981999200020012002200320042005 Year No. of Losses Number of losses by structural failure Total number of losses

5 Source: ITOPF. Number of spills above 700 tonnes. Development of Oil Spills

6 0 5 10 15 20 25 30 35 1971-751975-801981-751986-901991-951996-002001-05 Pollution from tankers Tonnes / billion tonne mile Tanker accidental pollution rate tonnes spilt per bn tonne miles trade Source: ITOPF spills, Fearnleys: Tonne miles

7 0 200 400 600 800 1000 78798081828384858687888990919293949596979899000102030405 War Hull & Machinery Fire/Explosion Grounding Collision/Contact Other Reported tanker incidents (1978 – 2005)

8 Safely and Reliably

9 Cost Effectively Freight rate and oil price (USD/bbl) deflated by the US consumer price index Oil price 2006 is approx price end April and not average price for the year. Oil price and tanker freight rate 1976-2006

10 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

11 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 !

12 “Good” Regulation AND Industry Best Practice

13 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

14 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

15 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

16 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. –………

17 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 –………..

18 EXAMPLES of Industry’s Quality Initiatives Industry-Government Programmes –Marine Electronic Highway –Pilotage User Group (Denmark) –Reception Facilities Forum –Double Hull Panel (EMSA) –………

19 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 –……….

20 Substandard Shipping - who is responsible ? What can we (all) do ?

21 BUILDERS MANAGERS EQUIIP SUP CLASS FINANCIERS CARGO BROKERS P&I HULL INSR FLAG STATE COASTAL STATE WATERWAYS PORTTERMINALS BUNKERERS PILOTS TUGS LABOUR CREW AGENTS REPAIRERS SALVORS INCIDENT MGT SHIPBREAKERS EDUCATION TRAINING DESIGN OWNER OPERATOR STAKEHOLDERS AGENCIES GOV IMO STATESLOCAL GOV CARGO

22 Poseidon Challenge - commitment to continuous improvement - commitment to working with all partners

23 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 ?

24 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).

25 Learning from Tanker incidents: 2005 OR NOT ? Hull & Machinery. Fire & Explosions. Grounding Collision* Miscellaneous *includes contact dwt rangeTotal Below 10,00069 10-29,99934 30-99,99940 100,000+18 Total161 AgeTotal Built 1970s25 Built 1980s51 Built 1990s56 Built 2000s29 Total161 Total 161 29 engine, 3 hull

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

27 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

28 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.”

29 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 fatalities Zero pollution Zero detentions


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