1. FFSA Insurance and Legal Committee The Tanker Industry Today “The World’s Tanker Fleet” 12 February 2008 Peter M Swift, MD INTERTANKO

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

3. Gasoline price at pump – Dec 2007 $/gallon

4. Move to Double Hulls More than USD 500 billion invested since 2000 with the result that >85% of tanker fleet double hulled in 2010

5. Average age tankers above 10,000 dwt (1970-2007) AGE (years)

6. Tanker fleet: by hull type and size segment m dwt

7. (Single Hull) Tanker Phase Out - an “uncertainty” post 2010 m dwt Assumptions : MARPOL phase out allows for trading until the age of 25 years old, max 2015 The EU alternative does not allow SH trading after 2010. DB/DS can trade until the age of 25 years old, but here cut off 2015 0 10 20 30 40 50 60 70 200320042005 2006 200720082009 2010 2011201220132014 2015 MARPOL (min phase out - trading of SH until 25 years) EU + no SH after 2010 OPA90

8. Future for Single Hulls Options today Conversion to - DH Tanker - FSU/FPSO - Bulk Carrier Recycling Continued Trading Subject to (i) Flag state and (ii) Coastal state acceptability after 2010 But now uncertainty over -Korea -Japan -China -India -Others

9. Tanker Incidents INTERTANKO Database

10. Incidents 2007 by type and accidental pollution 1000 ts oil pollutionNo. incidents Source: INTERTANKO/LMIU/ITOPF/various

11. Accidental oil pollution into the sea Source: ITOPF/Fearnleys 1000 ts spilt bntonne-m -45% -33% -82% Reduction per tonne miles

12. Reported tanker incidents Number Source: INTERTANKO/LMIU/various

13. Tanker incidents 2007 by type Source: INTERTANKO/LMIU/various

14. Tanker incidents 2007 by age Incidents/no tankers: 325 incidents 13% 21% 33%

15. Tanker engine related incidents 2007 incidents <10,000 dwt -.32%; 10,-30,000 dwt -.69%; 30,-100,000 –.49%; >100,000 dwt -.65% No Source: INTERTANKO/LMIU/various 0102030405060 2002 2003 2004 2005 2006 2007 Below 10,000 10-29,999 dwt 30-99,999 dwt Above 100,000 dwt

16. Tanker incidents: engine related 2007 incidents 1970s -.06%; 1980s -.51%; 1990s –.44%; 2000s -.65% No Source: INTERTANKO/LMIU/various 0102030405060 2002 2003 2004 2005 2006 2007 1 9 70s 1980s 1990s 2000s NK Built :

17. PSC Detentions Annual Report EQUASIS Database Detention rates: INTERTANKO fleet –1.7% Non-INTERTANKO fleet – 3.1 % Despite being subjected to three times more inspections

18. Thank you For more information, please visit: www.intertanko.com www.poseidonchallenge.com www.shippingfacts.com www.maritimefoundation.com

19. Average age tankers above 10,000 dwt (1970-2007) Years