1. INTERTANKO Transparency Working Group status report
Dimitris N Lyras
Director, Lyras Shipping
© Lyras Shipping 2002
Maritime London 2002

2. The INTERTANKO working group
Aims and objectives
Finding a solution to the transparency discussion
Suggesting a common policy
Initial discussions suggest a voluntary policy on transparency for members
Set an environment for healthy competition
Mitigate the effects of isolated information, e.g. Class recommendations
Lead to integrity and recognition
© Lyras Shipping 2002
Maritime London 2002

3. The INTERTANKO working group
Suggested voluntary policy:
Voluntary increase in management standards
Progressively more measurable internal transparency
This is no doubt the main purpose of the ISM code
© Lyras Shipping 2002
Maritime London 2002

4. The competent tanker operator
Internal assessment should set the standard
Should be far more sophisticated than external inspection
Keeping records of differences between external and internal audits is an indicator of the operator’s diligence
Comparison demonstrates operator’s attitude
Create a defence against rulings of negligence in major incidents
© Lyras Shipping 2002
Maritime London 2002

5. The drive towards higher standards
Oil majors will drive ISM implementation
Through risk of reputation related liability
May be timely to rekindle self-motivated industry drive towards higher management standards
Improving standards a means to gain competitive advantage
This is a preliminary report
Many questions as yet unanswered
E.g. How does increased internal transparency adversely influence commercial disputes and accident investigations?
How can we solve these problems?
© Lyras Shipping 2002
Maritime London 2002

6. Obstacles to internal transparency
Three major obstacles
Internal communication mechanisms are inefficient
Obstacles to a collaborative culture
Additional legal liabilities arising from increased record keeping
First being rapidly addressed by modern technology
Second a managerial matter
Already addressed in many industries and no doubt will be embraced by shipping
Third a huge issue
© Lyras Shipping 2002
Maritime London 2002

7. Protecting the owner Need a means to protect owners
Contractual terms with respect to privity of information to the manager may need to be modified.
From accusations of gross negligence where there is historic evidence of diligent operation
The expertise to find a solution no doubt exists within this assembly!
© Lyras Shipping 2002
Maritime London 2002

8. In conclusion
If transparency is to improve quality in vessel operations, it must be scrutinised and judged by experts.
If transparency is to proliferate quickly and practically it must offer clear benefit to the practitioner, and an advantage over a competitor who does not embrace transparency.
© Lyras Shipping 2002
Maritime London 2002

9. Thank you for your attention
Dimitris N Lyras
Director, Lyras Shipping
© Lyras Shipping 2002
Maritime London 2002