Short Sea Tanker Group Hamburg 3 December Prest P restige possible effects S eminar on European short sea tanker trade T erminal vetting D iscrimination of foreign flags MARPOL Annex II Revisions C ouncil Meeting in Hong Kong

Prestige (Bahamas) B uilt 1976, Hitachi Japan for MOC D WT 81,564 O wner/ M anager: M are Shipping Liberia/ U niverse Maritime, Greece, M ember INTERTANKO (79) C argo:HFO/SG 0.99 L oad port, Ventspils, Latvia D ischarge port, Singapore D amaged 13 December - S unk 19 December

Prestige – clean record ESP no 5, ABS, Guangzhou, May 2001 A nnual survey Dubai, ABS May 2002 PSC inspection Rotterdam 1 Sept. ’99. 3 def. ISM certification, BV for July 2001 to 20 June 2006 I nspected St. Petersburgh C rown R esources, Russia, no vetting P etrian S hipbrokers same as for ERIKA

Source: ABS Departure loading condition (5 Nov 2002) Riga, Latvia Still water bending moment is 43% of allowable Vessel stability in compliance with approved loading manual CBT mode (clean ballast transit)

Prestige – November November "explosive" sound and shudder at hours. started to list in 5 minutes, 26 degrees stb after 15 minutes, waves up to 8 meters 24 crew evacuated 17:00, Captain, Chief Officer and Chief Engineer stayed on board, 19:00 LOF signed 25 miles off the coast 14 November drifted close to the Spanish coast 06:00-08:00 Coast Guard and inspectors aboard for an assessment of the condition, 12:00 more crew re-joined, two tugs began to tow Prestige away from the coast estimated loss of some 3,000 tonnes of oil Spanish authorities requested that the engines to be restarted, master concerned about additional stresses

Prestige – November November Master asked to be granted a place of refuge the vessel was towed to a requested position some 70 miles off the coast progressive deterioration of the vessel's condition salvage team reached the vessel by helicopter and engines stopped to reduce stresses estimated loss of some 3,000 tonnes of oil 15 November 17:00, the master left the ship, when the Salvage Master decided that all personnel should leave the vessel. Prestige taken in tow by salvage tugs away from the Spanish coastline 18 Nov - towed further out to sea 19 Nov - 07:00 broke in two, 160 nm offshore, the two parts sank later in the afternoon at 3,500 m depth

Source: ABS

ABS, 3 Dec No apparent structural cause has yet been determined

Source: ABS ”The ramifications of extensive structural repair in way of Frame 71 starboard in May 2001 require further evaluation”, ABS

Prestige – issues C ause of accident Collision with floating object? Failing Structure L iability P ort of R efuge A rrest of Capt. Mongouras The credibility of the industry is at stake again Capt. Mongouras 32 years experience

Accidental oil spill from tankers tonnes spilt per billion tonne mile transported Source: ITOPF/Fearnleys

Accidental oil pollution from tankers in relation to trade Source: ITOPF/Fearnleys

Oil spill in the world – mil gallons *war accidents, **whole cargo 252 million gallons The largest is 21,000 million gallons; 700 oil wells in, Kuwait* 1991 Source: CNN 21 million gallons

Tanker incidents Jan-Nov 2002

CNN Prestige survey

Tanker structure/corrosion ESP spring 2001, quality of steel replacement? S torage with HFO containing H2S B allasting to rectify list, strongly increased bending moment Increased stresses du to restart of engine

Port of Refuge Could the ship have been saved and pollution mitigated if the tanker had been taken into sheltered water?

Phase out above 60,000 dwt

Phase out 5- 59,999 dwt number

HFO reported fixtures in Europe* Cargo tonnes * Europe: N Sea, Med, Black Sea, Baltic

HFO charterers Number 22 of 121 charterers 35%, 53 charterers 1 fixture

Largest charterers of dirty oil, January until 21 November 2002 Europe/Baltic/Mediterranean and Black Sea Tankers up to 120,000 dwt built in 1982 and earlier. Traders with limited vetting dominating chartering of old tankers

E voikos ’97 28,000 ts S’pore N akhodka ’98 13,000 ts Japan E rika ’99 20,000 ts France N atuna Sea ’00 7,000 ts Indonesia B altic Carrier ’01 2,700 ts Denmark P restige ’02 77,500 ts Spain HFO spills

USD GT Liability for oil pollution

number Possible measures Draft Council Conclusions: A ccelerated phasing out of single hull tankers, CAS from age of 15 years N ot accept SH tankers carrying the heaviest grades of oil… 25% target of Port State Control, EMSA, quality, uniformity inspections

I dentify places of refuge for ships in distress C ontrol of maritime traffic along the coasts E stablishment of a supplementary compensation fund R esponse capability strenthened M odernisation of the tanker fleet takes place at a rapid pace Possible measures Draft Council Conclusions:

Owner condition and operation of ship Class structure of ship Charterers type of cargo selection of ship Authorities port of refuge clean up P&I claims handling Who is to responsible and who failed?

Overreaction counter- productive A sound industry needs predictable contitions

INTERTANKO involvement  Response to press – some 500 calls Supplying facts/statistics Meetings ABS/EU Commission With ITOPF at the scene in Spain Participate in ABS investigation International versus unilateral regulations, make class work, against age discrimination, cargo receivers to finance COPE, rational and dispassionat debate, long term effects of oil spill normally not serious