1. Erik Ranheim Manager Research and Projects Seatrade Middle East Maritime, Dubai, 4 February 2003

2. INTERTANKO International Association of Independent Tanker Owners Safe Transport Cleaner Seas Free Competition advocating

3. Issues facing tankers  M iddle East essential for tankers  S afety performance  PRESITIGE accident  P ossible consequences

4. Source: Fearnleys, IEA, INTERTANKO

5. Control of the tanker fleet Source: EA Gibson

6. Oil companies reducing fleets

7. Cost elements - Gasoline price at the pump

8. Tankers performing well

9. Accidental oil spill from tankers tonnes spilt per billion tonne mile transported Source: ITOPF/Fearnleys

10. Accidental oil pollution from tankers and seaborne oil trade Bn tonne-miles’000 tonnes 99.995 % safe arrival in 2002

11. Reduced number of incidents

12. Tanker Incidents 2001

13. Modernisation tankers

14. PRESTIGE

15. PRESTIGE (Bahamas) B uilt 1976, Hitachi Japan for MOC D WT 81,564 M are Shipping Liberia/Universe Maritime, Greece, M ember INTERTANKO (79) C argo:HFO/SG 0.99 L oad port, Ventspils, Latvia D ischarge port, Singapore D amaged 13 December - S unk 19 December C lean record

16. PRESTIGE – issues M ajor spill of heavy fuel oil I nitial cause of hull failure? Could the ship haved been saved - P ort of R efuge L iability A rrest of Capt. Mongouras The credibility of the industry is at again stake Capt. Mongouras 32 years experience

17. Source: ABS ABS, 3 Dec No apparent structural cause has yet been determined

18. Tanker structure/corrosion ESP spring 2001, quality of steel replacement? S torage with HFO containing H2S B allasting to rectify list, strongly increased bending moment Increased stresses due to restart of engine Forced out to open rough seas

20. Owner condition and operation of ship Class Ensure that the ship in maintaiend to good standards no matter age Charterers type of cargo selection of ship Authorities port of refuge clean up P&I claims handling Who is to responsible and who failed?

21. Overreaction counter- productive A sound industry needs predictable contitions

22. Identify places of refuge for ships in distress Control of maritime traffic along the coasts Establishment of a supplementary compensation fund Response capability strenthened Modernisation of the tanker fleet takes place at a rapid pace Possible measures Draft Council Conclusions:

23. number Possible measures Draft Council Conclusions: A ccelerated phasing out of single hull tankers, CAS from age of 15 years N ot accept SH tankers carrying the heaviest grades of oil… 25% target of Port State Control, EMSA, quality, uniformity inspections

24. Phase-out VLCCs Total 436 ships, 217 DH, average age 10.1 years, orderbook 64

25. Phase-out Suezmaxes Total 266 ships, 173 DH, average age 9.8 years, orderbook 55 No

26. Phase-out 60-119,999 dwt Total 780 tankers, 384 DH, average age 13.2 years,203 No

27. Proposed EU reg. single-hull tanker phase-out +5,000 dwt

28. Prestige Issues  H eavy grades of oil in DH tankers  C hanging trade patterns  P osition of IMO threatened  F ragmentation regulations - inflexible markets  T hink before act

29. INTERTANKO looking after the interest of the tanker industry

30. Tanker market stagnating

31. OPEC/non-OPEC crude oil production 1971-2002

32. European oil imports by source – 12.5 mbd in 2002

33. US crude oil production and net crude oil imports 1983-2003 (est.), monthly Source: EIA

34. Tankers sold for recycling by receiving country mil dwt