Leadership in the Tanker Industry Senior Maritime Forum Leadership in the Tanker Industry Shanghai, 28 November 2007 Peter M. Swift

INTERTANKO 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. THE POSEIDON CHALLENGE COMMITTMENT - to continuous improvement - to working with all partners - striving to achieve the goals of: Zero fatalities, Zero pollution, Zero detentions

Importance of oil tanker transportation recognised - delivering energy for the world World Oil Consumption 3.8 billion ts Transported by sea 2.4 billion ts > 60% transported by sea

Tanker Industry is accustomed to being under the spotlight Watched by: Regulators Politicians Public Licences to trade rigorously applied by: Flag states Classification Societies Insurers Charterers Monitored by: Coastal and Port states

Tanker Industry Today Leadership in Tanker Shipping Pro-active, with constructive programmes Engaged fully with other stakeholders Respected as a responsible industry Committed to: - self regulation based on industry best practices, - support “effective”, fit for purpose, legislation - continuous improvement

Key challenges for shipping industry - are not unique to Tanker sector Maintaining an international framework of consistent, high standards Delivering best environmental performance Ensuring availability of good people and quality ships

Upholding International Regulation and customary international law Supporting IMO with active participation Encouraging ratification of IMO (and ILO) Conventions Engaged in “processes” in US (Washington), Europe (Brussels) and elsewhere Prepared to challenge conflicts and contradictions through the courts

Ratification by States is IMPORTANT for a better industry 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) Convention on Limitation of Liability for Maritime Claims (LLMC), 1976 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): C180 Seafarers' Hours of Work and the Manning of Ships Convention, 1996 Maritime Labour Convention 2006

Consistency in International Standards - actions by Tanker industry Full support for IMO Member State Audit scheme plus transparency in findings Championed the development of Common Structural Rules for Tankers Established with others a regular Tripartite dialogue between international shipbuilders, classification societies and ship Led the campaign for greater harmonisation and uniformity in procedures across Port State Control regimes

Action on key environmental challenges Established international Forum to address inadequacies of reception facilities Developed interim policy on Responsible Recycling ahead of proposed Convention Implemented Antifouling Convention ahead of formal entry into force Trialled procedures to develop solutions to meet new Ballast Water Management requirements; also now addressing biofouling issues Developed procedures to limit Volatile Organic Compound (VOC) emissions from cargo tanks Produced guidelines on minimisation of ship generated waste Proposed solutions to reduce globally harmful exhaust gas emissions (atmospheric pollution) for existing and new ships Actively engaged in developing measures to reduce Green House Gas emissions (principally CO 2 ) from today’s and tomorrow’s ships

Action on safety issues Established joint user group with governments and pilots, to encourage taking a pilot in international straits as per IMO recommendations Supported the development of a Marine Electronic Highway Established a lifeboat user group with manufacturers to seek remedies for shortcomings with lifeboats and lifeboat safety Campaigning to ensure that better safety-related information on the characteristics of dangerous cargoes is made available to ships’ crews Championed Early Warning (information exchange) Systems with classification societies Developed guidelines on tanker maintenance, including means of access and repair procedures Implemented Terminal Vetting database

Investment in new tankers More than USD 500 billion invested since 2000 with the result that >85% of tanker fleet double hulled in 2010

Investment in people Respected as an asset, not treated as a cost !

Action on Human Element issues - welfare and well-being Speaking out against unjustified criminalisation, and challenging bad laws through the courts Supporting IMO-ILO guidelines on Fair Treatment of Seafarers (in event of Maritime Accident) Campaigning for improved conditions for shore access when security constraints active Working to reduce multiple and overlapping inspections Promoting solutions to lessen technical and operational burden of equipment, systems and associated paperwork Prepared guidelines for safe handling of cargoes and fuels, tank cleaning and entry Developed guidelines on implementing ILO Convention on “work and rest hours” Promoting higher standards of accommodation as industry “norms”

Action on Human Element issues - recruitment, training and retention Policies for cadet berths and training facilities on ALL new ships Programmes for maximum utilisation of cadet berths on existing ships Developing industry standards for Tanker Officer Training, covering proficiency and experience Running seminars and workshops worldwide for officers and seafarers on Tanker industry issues Raising awareness of the industry, targeting young people as well as media, politicians, regulators and the public (

Tanker industry - a record of continuous improvement Leading by example ! Accidental oil pollution from tankers down - from 2.9 m tonnes in the 1970s to less than 190,000 tonnes this decade so far Tankers today more efficient than ever before - one litre of fuel on a modern VLCC (Very Large Crude Carrier) moving one tonne of cargo more than 2,500 kilometres - more than twice as far as 20 years ago Transportation costs still a very small fraction of the delivered cost of oil Reliability of supply at record highs And many new initiatives for safer, cleaner and more efficient ships. But NOT COMPLACENT !

Learning from incidents, improving feedback and information exchanges New initiatives underway to improve: Gathering of information on incidents, including confidential reporting and appropriate feedback loops Root-cause analyses and accident investigations Share information (greater openness and transparency) Learn lessons (to prevent accidents and re-occurrences)

Poseidon Challenge - encourages all parties to commit to: - continuous improvement - working with all partners

The International Tanker industry is fully committed to the goals of the IMO Shipping should be: Safe and secure Environmentally responsible Reliable Efficient (Low cost) Tanker Industry today “is proud of its people and proud of its ships” and will continue to provide the world with safe, environmentally sound and efficient seaborne transportation of oil, gas and chemical products

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