The Round Table of international shipping associations International Shipping Federation Asian Shipowners Forum Hainan Province, PR of China 3 June 2008

The Round Table of international shipping associations International Shipping Federation The ROUND TABLE of international shipping associations of international shipping associations BIMCO INTERCARGO International Chamber of Shipping/ International Shipping Federation (ICS / ISF) INTERTANKO

The Round Table of international shipping associations International Shipping Federation The ROUND TABLE of international shipping associations of international shipping associations MISSION To work together to serve, represent and advance the international shipping industry VISION A responsible and respected international shipping industry meeting the expectations of its stakeholders STRATEGIC OBJECTIVE By acting in concert to avoid duplication on issues of consensus, where the combined effort of the Round Table can exceed the sum of the individual efforts

The Round Table of international shipping associations International Shipping Federation The ROUND TABLE of international shipping associations of international shipping associations AGENDA SAFETY AND QUALITY ISSUES Roger Holt - INTERCARGO KEY ENVIRONMENTAL CHALLENGES Tony Mason - ICS / ISF THE PEOPLE CHALLENGE Robert Lorenz-Meyer - BIMCO GLOBAL GOVERNANCE Peter Swift - INTERTANKO

The Round Table of international shipping associations International Shipping Federation Safety and Quality Issues Roger Holt Secretary General INTERCARGO

The Round Table of international shipping associations International Shipping Federation INTERCARGO The International Association of Dry Cargo Shipowners Owner & Operator interests Direct entry organisation Promotion of Safety, Quality, Efficiency, Protection of the Environment & Profitability Formed in 1980 by Mr. Antony Chandris

The Round Table of international shipping associations International Shipping Federation 120+ full members and associates Inclusive of Operators as full members 800 bulk carriers over 10,000dwt Secretariat based in London

The Round Table of international shipping associations International Shipping Federation WORK PROGRAMME Air Emissions Common Structural Rules & Goal Based Standards Casualties & Transparency Criminalisation of seafarers Definition of a Bulk Carrier Environmental Legislation

The Round Table of international shipping associations International Shipping Federation WORK PROGRAMME (Cont.) Lifeboats Loading Rates & Condition of Loading Pooling & EU Competition Law Port State Control: Performance & Irregularities Reception Facilities/MARPOL Annex V Stowaways Training & Manpower

The Round Table of international shipping associations International Shipping Federation How do Safety and Quality interact ? How do Safety and Quality interact ?

The Round Table of international shipping associations International Shipping Federation Safety and Quality Examples of safety issues considered at IMO MSC83: - Goal Based Standards for new ship construction - Safety of navigation - Definition of a Bulk carrier - General cargo ship safety - Piracy and armed robbery

The Round Table of international shipping associations International Shipping Federation Safety and Quality Self regulation projects developed or being developed by the RTisa partners: BIMCO - The Standard Shipbuilding Contract - The Quality Coastal State ICS - Flag State Performance - Shipping Industry Guidance on Environmental Compliance INTERCARGO - Benchmarking of Bulk Carriers - Loading Rates INTERTANKO - TOTS - VOCON

The Round Table of international shipping associations International Shipping Federation BIMCO The Standard Shipbuilding Contract: Applicable to all ship types and in all jurisdictions Benchmark for shipbuilding contract provisions Developed after broad industry consultation Inclusion of the Green Passport

The Round Table of international shipping associations International Shipping Federation BIMCO – Quality Coastal State VISION: Quality Ships trading between Quality Coastal States BIMCO sought broad support to enhance awareness of the important role of coastal states Coastal states have rights – AND obligations, such as ratification of international conventions and emergency response e.g. reception facilities, ports of refuge, fair treatment of seafarers etc.

The Round Table of international shipping associations International Shipping Federation BIMCO – Quality Coastal State A pro-active instrument to raise awareness of the role of Coastal States and highlight stakeholders’ expectations Maritime stakeholders must collaborate to raise awareness of Coastal States’ obligations and actively promote better coastal state governance Pilot study undertaken in support of the concept, in cooperation with ICS, INTERTANKO, INTERCARGO, NI, IALA, InterMEPA

The Round Table of international shipping associations International Shipping Federation FLAG STATE PERFORMANCE Port State Control (White/Black List) Non Ratification of Conventions STCW White List

The Round Table of international shipping associations International Shipping Federation GUIDANCE ON ENVIRONMENTAL COMPLIANCE Both Corporate and Individual Responsibility ISM Code Includes Environmental Management Training for Seafarers (STCW) Board Accountability for Compliance

The Round Table of international shipping associations International Shipping Federation Statistics : Dry Bulk dwt international traders Fleet growth – since 2007, > 1 Billion dwt…. 1/1/ ,084 1/1/2008 – 6, – 7,700 ?? (uncertainties !!) Demolitions in 2007 – only c 14 Fairly static Casualties (total losses) but reducing trend overall 2006 – 7 ships : 37 lives 2007 – 8 ships : 39 lives concerns about China-orientated quality Negative Performance Indicators : 2007 c/f with average of : mixed results Collisions, with other ships : % Groundings : + 31 % Engine Problems : + 32 % INTERCARGO

The Round Table of international shipping associations International Shipping Federation INTERCARGO DPI correlates to other performance scores Companies with high DPI scores tend to be targeted under port State control Of the 2007 Casualties; 6 of the 8 casualties were to “Category 8” and above companies or companies which traded outside the 3 main trading areas.

The Round Table of international shipping associations International Shipping Federation INTERCARGO Rightship and vetting From 1 March 2008, Rightship (BHP, Cargill and RTZ) recognised the Intercargo DPI result as a legitimate assessment tool Bonus points awarded on a ship by ship basis; potentially equivalent to lifting the vessel score by a one-star rating

The Round Table of international shipping associations International Shipping Federation INTERCARGO – Iron Ore Loading Rates Terminal requirements Buoyant market → queuing → optimising loading CVRD - Brazil – t/hr – Minimum ballast – 14 hr turnaround

The Round Table of international shipping associations International Shipping Federation INTERCARGO - Coal Loading Rates Terminal requirements Buoyant market → queuing → optimising loading PWCS – Australia –List of 50 “Vessels No Longer Acceptable at PWCS” –Poor performing Vessels –Insufficient ballasting

The Round Table of international shipping associations International Shipping Federation On-going work: Manoeuvrability study Testing assumptions on a range of ships Potential further structural studies Further submissions to IMO

The Round Table of international shipping associations International Shipping Federation Tanker Officer Training Standards (TOTS) – providing the tanker industry with a clear standard of tanker officer competence Eases compliance with officer matrix requirements Enhances tanker officers’ understanding Bridges the experience gap Provides core competency training and verification INTERTANKO

The Round Table of international shipping associations International Shipping Federation VOCON - a Shipboard Procedure for the Control of Atmospheric Pollution by Volatile Organic Compounds (VOCs) on loaded passage Requires no additional equipment Reduces pollutants (by up to 80%) Reduces Loss of Cargo VOCON INTERTANKO

The Round Table of international shipping associations International Shipping Federation Poseidon Challenge - commitment to continuous improvement - commitment to working with all partners Round Table of international shipping associations

The Round Table of international shipping associations International Shipping Federation Tripartite Round Table of international shipping associations Developed in 2001 by Fred Tsao, past Chairman of INTERCARGO The first attempt to open a dialogue between: Shipyards Classification Societies Shipowners One meeting each year against a planned agenda

The Round Table of international shipping associations International Shipping Federation Heightening Awareness Round Table of international shipping associations RTisa has established: Maritime Industry Foundation - Includes a Knowledge Centre - Promotion of the Industry Shippingfacts.com - Provides key facts about shipping

The Round Table of international shipping associations International Shipping Federation Key Environmental Challenges Tony Mason Secretary General ICS/ISF

The Round Table of international shipping associations International Shipping Federation INTERNATIONAL CHAMBER OF SHIPPING / INTERNATIONAL SHIPPING FEDERATION ICS – Technical/Safety/Environment/Legal ISF – Maritime Employers’ Association Members are National Shipowners’ Associations (40 Members including: Australia/Cosco (China)/ Hong Kong/ Japan/Korea/ Philippines/Singapore)

The Round Table of international shipping associations International Shipping Federation ICS/ISF – PRINCIPAL AREAS OF ACTIVITY International Regulatory Issues – IMO / ILO Legal Matters (IMO, UNCLOS, UNCITRAL, etc) Shipping Policy Issues (OECD, CSG, etc) Best Practice / Technical Publications

The Round Table of international shipping associations International Shipping Federation KEY ENVIRONMENTAL CHALLENGES Air Pollution from Ships Greenhouse Gases Ballast Water Management Anti - Fouling / Bio – Fouling Recycling

The Round Table of international shipping associations International Shipping Federation AIR POLLUTION SOx, NOx, Particulate Matter, VOC Marpol Annex VI – Entered into Force 2005 Review Concluded MEPC 57 - April 2007 Amendments to be adopted MEPC 58 – October 2008 Entry into Force – 16 Months Later Successful Outcome Re-Inforces IMO’s International System of Regulations

The Round Table of international shipping associations International Shipping Federation MARPOL ANNEX VI REVIEW MEPC 57 - SOx OUTCOME CurrentGlobal Limit 4.5% SECA Limit 1.5% 2010ECA Limit to 1.0% 2012Global Limit to 3.5% 2015ECA Limit to 0.1% 2020Global Limit to 0.5% (With Review in 2018) 2025Global Limit to 0.5% (Irrespective of Review) Alternative Compliance – Fuels or Abatement

The Round Table of international shipping associations International Shipping Federation MARPOL ANNEX VI REVIEW NOx Tighter Standards on New Ships Dependent on Compliant Engine Technology Engines – Install Kit if Available Possible Trade-Off with CO2 Efficiency

The Round Table of international shipping associations International Shipping Federation CO2 EMISSIONS Shipping = 3-4% of Global Emissions IMO Targeting Outcome by MEPC 59 – (July 2009) UN Climate Conference (COP – 15) Copenhagen – December 2009 EU Threat to Take Action if No Positive Outcome Industry Should Support International System Through IMO

The Round Table of international shipping associations International Shipping Federation CO2 – INDUSTRY POSITION Commitment to Reducing the Impact of Shipping Shipping – The Irreplaceable Engine of World Trade Shipping – The Greenest Transport Mode Strive to Improve Fuel Efficiency

The Round Table of international shipping associations International Shipping Federation CO2 - INDUSTRY ENGAGEMENT Industry Initiatives Tripartite Group with Shipbuilders / Class Inter-Industry Group – 11 June IMO Intersessional Meeting 23 – 27 June Industry Submissions to MEPC 58

The Round Table of international shipping associations International Shipping Federation CO2 – THE WAY FORWARD New Buildings-Hull -Engine -Propeller -Waste Heat Recovery Existing Ships-Slow Steaming -Operational Best Practice Alternative Fuels ?

The Round Table of international shipping associations International Shipping Federation CO2 – ISSUES New Building / Operational Indices Fuel Levy or Emissions Trading? What Can We Achieve? –Possibly 12 – 15% Reduction per Ship by 2020 What Might Governments Want to Achieve? –20% Reduction in Total Emissions by 2020 Equals Approximately 50% Reduction per Ship!

The Round Table of international shipping associations International Shipping Federation OTHER ENVIRONMENTAL ISSUES Ballast Water Management: Convention Not Yet In Force “Date” Issue Resolved at IMO Assembly Equipment Now Being Approved and Guidelines Finalised Industry Should Support Ratification Recycling: IMO Convention (Diplomatic Conference 2009) Industry Guidelines to cover Shipowner Best Practice Prior to Entry into Force

The Round Table of international shipping associations International Shipping Federation The People Challenge Robert Lorenz-Meyer President Elect BIMCO

The Round Table of international shipping associations International Shipping Federation BIMCO World’s largest private shipping organization 2,500+ members and growing Asian members represents: –More than 10 per cent of BIMCO members. –More than 1/3 of tonnage in BIMCO BIMCO focus on Asia

The Round Table of international shipping associations International Shipping Federation The People Challenge Global challenge and competition for talent Shortage of seafarers Shortage of staff ashore – shipping offices and yards No quick fix – long term solutions

The Round Table of international shipping associations International Shipping Federation Global Governance for a global industry Peter M Swift Managing Director INTERTANKO SEEKING TO MAINTAIN - CONSISTENCY IN INTERNATIOINAL STANDARDS, and - A LEVEL PLAYING FIELD

The Round Table of international shipping associations International Shipping Federation INTERTANKO INTERTANKO International Association of Independent Tanker Owners 290+ members operating ca ships > 80% of independent oil tanker fleet and > 85% of chemical carrier fleet - strict membership requirements, including adoption of best practice policies 350+ associate members: in oil and chemical tanker related businesses 15 Committees / 20+ Working groups – 5 Regional Panels Principal Offices in London and Oslo Representative Offices in Asia, US and Brussels Observer Status at IMO, IOPC, OECD and UNCTAD

The Round Table of international shipping associations International Shipping Federation INTERTANKO – The Voice of the Tanker Industry MISSION To provide leadership to the Tanker Industry in serving the world with safe, environmentally sound and efficient seaborne transportation of oil, gas and chemical products VISION FOR THE TANKER INDUSTRY A responsible, sustainable, respected Tanker Industry, committed to continuous improvement and constructively influencing its future 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 International Association of Independent Tanker Owners

The Round Table of international shipping associations International Shipping Federation Encouraging International Regulation and upholding of customary international Encouraging International Regulation and upholding of customary international law Supporting IMO with active participation Encouraging ratification of IMO (and ILO) Conventions Discouraging unilateral local, national and regional legislation Maintaining open dialogue in regional centres, e.g. Europe (Brussels), US (Washington) and elsewhere (incl. Asia)

The Round Table of international shipping associations International Shipping Federation Encouraging Ratification by States of International Conventions IMO Conventions including: International Convention on the Control of Harmful Anti-fouling Systems on Ships (AFS), 2001 (*) International Convention for the Control and Management of Ships’ Ballast Water and Sediments, 2004 Annex VI: Prevention of Air Pollution from Ships, 1996: International Convention for the Prevention of Pollution from Ships, 1973, as modified by the Protocol of 1978 relating thereto (MARPOL 73/78) (*) !996 Protocol to Convention on Limitation of Liability for Maritime Claims (LLMC), 1976 (*)Even though Entered/Entering into Force

The Round Table of international shipping associations International Shipping Federation Encouraging Ratification by States of International Conventions Continued: IMO Conventions including: International Convention on Civil Liability for Oil Pollution Damage (CLC), 1969 International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage (FUND), 1971 International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea (HNS), 1996 International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001 (*) ILO Convention(s): Seafarers' Identity Documents Convention (Revised), (C185), 2003 Maritime Labour Convention, (MLC) 2006 (*) Even though Entered/Entering into Force

The Round Table of international shipping associations International Shipping Federation Seeking consistency in International Standards FLAG STATES: Full support for IMO Member State Audit scheme plus transparency in findings Responsible for undertaking casualty investigations RT Guidelines on Flag State Performance COASTAL STATES: Quality Coastal State Project has been initiated Objective is to encourage Coastal States to live up to their obligations, - ensuring fair and consistent processes

The Round Table of international shipping associations International Shipping Federation Seeking consistency in International Standards CLASSIFICATION SOCIETIES Full support for the development of Common Structural Rules for Tankers & Bulkers Regular Dialogue with IACS on uniform requirements and uniform interpretations, survey procedures, etc. CLASSIFICATION SOCIETIES AND SHIPBUILDERS Tripartite dialogue between international shipbuilders, classification societies and shipowners Seeking uniformity of standards, e.g. coating performance; construction survey plans; commissioning; cadet berths, etc.

The Round Table of international shipping associations International Shipping Federation Seeking consistency in International Standards PORT STATE CONTROL Encouraging better targeting procedures Supporting greater harmonisation and uniformity in procedures across Port State Control regimes Welcome recent decisions of Paris MoU for a common training programme and standards for PSCOs

The Round Table of international shipping associations International Shipping Federation Thank you ! 谢谢大家