1. Maritime Trades Department Executive Board Meeting March 8-9, 2012
TANKER INDUSTRY OVERVIEW
JOSEPH ANGELO
MANAGING DIRECTOR

2. INTERTANKO
WORKPLAN PRIORITIES
TANKER MARKET
TANKER INCIDENTS
CURRENT MAJOR ISSUES

3. INTERTANKO INTERNATIONAL ASSOCIATION OF INDEPENDENT TANKER OWNERS
Non-profit organization
Established in 1970
Voice of the independent tanker owners

4. MEMBERSHIP
MEMBERSHIP is open to independent tanker owners and operators of oil and chemical tankers (i.e. non-oil companies and non-state controlled tanker owners) who meet the membership criteria.
ASSOCIATE MEMBERSHIP is available to any entity with an interest in the shipping of oil and chemicals.

5. INTERTANKO
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

6. INTERTANKO PRIMARY GOAL Lead the CONTINUOUS IMPROVEMENT
of the Tanker Industry’s Performance
in striving to achieve the Goals of:
Zero Fatalities
Zero Pollution
Zero Detentions

7. MORE THAN 75% OF THE INDEPENDENT TANKER FLEET
MEMBERSHIP
230+ Members
3,200+ Tankers
280+ Million DWT
Members in 40+ countries
MORE THAN 75% OF THE INDEPENDENT TANKER FLEET
330+ Associate Members

8. SECRETARIAT - Managing Director 21 STAFF MEMBERS IN 4+ OFFICES
Oslo (8), London (11), Singapore (1)
USA (1) + Brussels
STAFF INCLUDES
- Managing Director
- Deputy Managing Director
- Technical Director
- Director, Regulatory Affairs
- Marine Director
- General Counsel

9. WORKPLAN PRIORITIES CORE PURPOSES Safety/Technical Seafarers
Environment
Marine Operations
Regulatory/Legal
Tanker Information

10. SEAFARERS Criminalization Crew competence Shore access
Fair treatment of seafarers
Crew visas
Seafarer Id documents
Accommodation spaces
Cadet berthing
Fatigue
ILO/MLC 2006

11. TANKER MARKET
Deep concern that the current tanker market rates are consistently below ship owners’ operating costs.
INTERTANKO’s Chairman, Capt Graham Westgarth
“If these rate levels continue for a long period, this could lead to a situation where sustainability of the oil transportation industry is threatened.”
“Our Members operate tankers to the highest standards and will continue to do so. Operating for a prolonged period in an environment where tanker owners are not even covering their operating costs is obviously not a situation that can be maintained.”

12. TANKER MARKET
$/day

13. TANKER SUPPLY
m dwt
number

14. TANKER SUPPLY
m dwt
Under above assumptions, 6% growth is necessary to regain same market balance in 2014 as in 2008

15. Tanker Incidents and accidental pollution Includes all tankers types and sizes

16. MAJOR ISSUES High level discussions with OCIMF Piracy*
Greenhouse gas emissions
Ballast water management
Sustainability of the Tanker industry
Tanker Safety/Performance

17. PIRACY - Somalia - 237 attempted incidents 2010 Statistics (IMB)
hijackings (21% of incidents)
2011 Statistics (IMB)
- 237 attempted incidents
hijackings (11% of incidents)
2012 Statistics (IMB) (As of Feb 29)
attempted incidents
hijackings (15% of incidents)

18. PIRACY INTERTANKO FOCUS Actions members can take to protect themselves
Actions we want governments to take to protect our members

19. FOCUS AREAS - INDUSTRY Best Management Practices (BMP) Citadels
Armed guards

20. BMP4 Three essential requirements that cannot be over emphasized:
Register with MSCHOA
Report to UKMTO
Implement Self Protection Measures

21. CITADELS Industry developed guidance on citadels
Describes the construction and use of a Citadel in order to provide effective protection against determined intrusion
Guidance does not recommend or endorse the use of a Citadel; aim to present the relevant facts to enable the Ship Owner/Operator to reach a reasoned conclusion as to whether or not to utilise a Citadel
Guidance has been approved by NATO, EUNAFOR and CMF and is available on their web sites

22. ARMED GUARDS INTERTANKO position regarding the use of armed guards
INTERTANKO believes it is the responsibility of the international navies to ensure the right of free passage on the high seas including the use of vessel protection detachments on merchant ships
INTERTANKO does not advocate the arming ships' crews
INTERTANKO believes that the use of private armed guards or private security forces onboard merchant ships has to be a matter for each individual owner or manager to assess as part of their own voyage risk assessment

23. ARMED GUARDS IMO Maritime Safety Committee
MSC.1/Circ.1405 – Interim Guidance to Shipowners, Ship Operators and Ship Masters on the use of Privately Contracted Armed Security Personnel on Board Ships in the High Risk Area
MSC.1/Circ.1406 – Interim Recommendations for Flag States regarding the use of Privately Contracted Armed Security Personnel on Board Ships in the High Risk Area
MSC.1/Circ.1408 – Interim Recommendations for Port and Coastal States regarding the use of Privately Contracted Armed Security Personnel on Board Ships in the High Risk Area

24. FOCUS AREAS - GOVTS
Increased "Government Will" to eradicate piracy off Somalia
Cease the use of mother ships
Increased prosecution of convicted pirates
Increased naval assets in the region
Increased public awareness to drive the desired increase in "Government Will“
Action to address the root cause of piracy ashore in Somalia

25. SOS CAMPAIGN
SaveOurSeafarers (SOS) campaign initiated by INTERTANKO. Joined by BIMCO, ICS, ITF and INTERCARGO
Contracted with PR firm to increase public, business and government awareness
Phase One –
- Ad in Financial Times and World Street Journal
- web site
- Letters to UN SG, Heads of State and EU President
- Interviews with press and news media
- Press releases after incidents

28. SOS CAMPAIGN Phase Two – - Social media (Blog, Twitter, Facebook, etc)
- Actively engage policy makers
- Further ads, press releases and interviews
- Seek high profile name to assist in cause
Wider industry involvement, now includes support from 30 maritime associations/organizations
Steering committee established to brainstorm ideas, prioritize work items and manage budget
Phase Three
- More focus on high level politicians

29. THANK YOU!!