INTERTANKO and the tanker Industry WMU Oslo 24 September 2007 Manager Research and Projects

International Association of Independent Tanker Owners A non-governmental organization established in Oslo in 1970 to speak authoritatively and proactively on behalf of tanker operators at international, regional, national and local level Membership 260 Members 40+ countries 2,650+ tankers 220 million dwt 75% of independent tanker fleet 300 Associate Members 2. INTERTANKO

MISSION “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 and respected Tanker Industry, committed to continuous improvement and constructively influencing its future.” 2. INTERTANKO

Member Company Regional ManagerIssue Manager Member Company INTERTANKO Position Issue Developing an INTERTANKO Position 2. INTERTANKO

INTERTANKO represents and promotes the interests of the responsible tanker owners worldwide and provides members with advice, information and support on technical, operational, documentary, port and other issues and is a meeting place and discussion forum for tanker owners INTERTANKO Services 25 Secretariat Oslo, London, Washington & Singapore 14 Committee’s and 4 Regional Panels 50+ Work Items on the Agenda

2. INTERTANKO advice on charter party questions advice on international regulations market information –statistics –world economy –oil market –tanker and chemical fleet –casualties and oil spills guidance and information publications –50% off the purchase price of publications Freight and Demurrage Information Pool –a database of charterers' records on settlement of freight and demurrage –receive assistance in securing payment of outstanding demurrage claims INTERTANKO Services: Using INTERTANKO

Air emission Human element Criminalisation of seafarer Liability for oil pollution Competition rules International regulations INTERTANKO’s most important issues

Liaison INTERCARGO International Chamber of Shipping (ICS) BIMCO Oil Companies International Marine forum (OCIMF) Individual oil companies Ports Associations (reception facilities, terminal vetting) Pilots PSC (MoUs) Local, National, Regional and International regulatory bodies 2. INTERTANKO Round Table of International Shipping Associations (RTisa)

1.Requirements Independent owners Entry of all tankers into Membership IACS Classification Societies The International Group P&I Transparency of ownership Limited detentions in ports Approved by the council 2.Best Practices Budget Resources Breaches of MARPOL Reporting Deficiencies to Class Leading Industry Performance IMO Pilotage Recommendations for Danish Waters Guide for Correct Entries in the Oil record book Right Whale Avoidance Best Practice - Cadet Berths IMO Guidelines for Lifeboat Safety Incident Transparency Ballast Water Management Plan Emergency Response for Damage Stability INTERTANKO Membership criteria

The State of the tanker Industry

High safety Low pollution Low age End of high earnings

Tanker incidents by cause Q07 Number incidents Source: Based on incident reports from Lloyd’s Maritime Information Service Oil pollution – 1000 ts

Tanker incidents by cause 2006 Source: Based on incident reports from Informa

Tanker accidents and trade Source: ITOPF/Fearnleys 1000 ts spilt Bn tonne-miles trade

Pollution rate 1000 ts spilt per bn tonne miles carried Source: ITOÅF/Fearnleys 1000 ts spilt bntonne-m

Accidental pollution from tankers largest accidents Source: ITOPF 1000 ts spilt

Accidental pollution from tankers largest accidents and age Source: Informa/INTERTANKO Number incidentsAverage age

Total losses, tankers and bulkers Source: Clarkson Number

World CO 2 emission, energy use and population - indices Source: CO 2 emission: US Energy Information Administration Energy use: BP Review Population: UN CO 2 emission increase stronger than energy and population increase due to relatively stronger increase in coal consumption Index

World CO 2 emission

Tanker Market

Oil price and VLCC freight rates $ per day freight rate $ per barrel oil price

Oil price and VLCC freight rates $ per day freight rate $ per barrel oil price

VLCC spot and break-even rates $ per day freight rate

VLCC break-even rates $ per day freight rate

Source: INTERTANKO Oil price and freight rate $/barrel

Source: INTERTANKO Gasoline price at the pump $ per litre

mbd Source: IEA World oil demand - mbd

litres Source: BP Review Oil consumption per capita

mbd Oil consumption if world populations consumed oil as Americans

Seaborne oil trade and Middle East oil production mbd Source: Fearnleys/IEA '000 bil tm

Tanker productivity – tonne-miles/dwt Source: Fearnleys/IEA

mbd Source: IEA Sources of European oil imports - mbd mbd

Source: IEA Sources of US oil imports - mbd

Source: IEA Sources of Asian oil imports

Source: IEA World oil demand increase - mbd mbd Increase 2008 Rest of world: Other Asia: 0.23 mbd Latin America: 0.14 mbd Africa: 0.11 mbd Europe: 0.26 mbd Others 0.34 mbd Total 1.08 mbd

Source: IEA Chinese net oil imports - mbd mbd

World oil supply - mbd Source: IEA mbd

Tanker Supply

Tanker contracting $ bn m dwt VLCC $ bn Suezmax: 5.9 ” Aframax: 8.8 ” Panamax: 2.8 ” Handy: 22.9 ” (43%) Source: INTERTANKO/Clarkson Shipyard Monitor

Tanker fleet, orderbook and phase out tankers above 30,000 dwt m dwt 79 m dwt133 m dwt

Phase out SH tankers above 30,000 dwt m dwt

Tanker fleet double-hull development Source: Clarkson %

Tanker deliveries, removals, max phase-out m dwt

Tanker fleet development Oil and chemicals m dwt

VLCC fleet development Number Source: INTERTANKO m dwt

Conclusion High safety performance Strong earnings – until now Strong fleet increase Reduced earnings