1. INTERCARGO International Association of Dry Cargo Shipowners Presentation to the Public Forum, Anchorage March 29th, 2005

2. INTERCARGO, the International Association of Dry Cargo Shipowners Direct entry organisation Specialising in Bulk Carrier issues Established in 1980 Promotion of Safety, Quality, Efficiency and a Level Playing Field INTERCARGO

3. Membership 110 Full and Associate Members 900 +/- bulk carriers over 10,000 dwt Inclusive of Operators as full members Membership criteria: PSC record, P&I Club, IACS, ISM, I/C Excomm. INTERCARGO

4. The ROUND TABLE of international shipping associations BIMCO, ICS, INTERCARGO & INTERTANKO Chamber of Shipping of America (Washington) Vision for the shipping industry “ A responsible, sustainable and respected industry able to influence its own destiny.” Represents about 95% of World Shipping Develop a Strategy for the Industry and a conduit for engagement

5. Vision Safe, efficient and environmentally friendly dry cargo maritime transport industry where its member’s ships service world trade Operating competitively, safely and profitably INTERCARGO

6. Abiding Principles INTERCARGO Quality and Safety Transparency Engagement Worldwide Environmental Awareness

7. INTERCARGO Shipping – national, regional and international The international shipping industry - about 90% of world trade Lynchpin of the global economy Ships are technically sophisticated, high value assets Nearly everything we touch and much of what we eat is carried by sea

8. INTERCARGO Purpose of shipping Main drybulk – Seaborne Trade

9. Purpose of Shipping - Major dry bulk export cargoes INTERCARGO Source: SSY +7.6% +5.5% +2.1%

10. INTERCARGO Drybulk fleet development Number of ships 3,000 3,500 4,000 4,500 5,000 5,500 6,000 1984 1985 19861987 1988 1989199019911992199319941995 1996 199719981999 2000 2001 2002 2003 2004 Number of ships Source: Fearnleys

11. INTERCARGO Drybulk fleet development Million dwt 50 100 150 200 250 300 350 198419851986198719881989199019911992199319941995199619971998199920002001200220032004 Million dwt Source: Fearnleys

12. Oil pollution into the sea Maritime sources Ex: INTERTANKO

13. INTERCARGO Bulk Carrier Casualty Trends to Goal Zero Average age of ship losses DWT Losses Annual average ship loss Annual average loss of lives

14. The regulatory structure of shipping IMO National Administrations Classification Societies Flag States Port States Self-regulation INTERCARGO

15. Safer Shipping – Chain of Responsibility Stakeholders: ongoing continuous improvements More effective regulation A balance of interests Self regulation Global process with local input INTERCARGO

16. The Human Element Seafarers are a vital Stakeholder Authorisation under STCW – Standards on Training, Certification and Watchkeeping (IMO) Seafarers must not be forgotten nor criminalised The men and women at sea make an enormous contibution to our lives

17. “Specific measures” Tracking Systems Emergency Towing Vessels Oil Spill Response Preparedness Vessel Routing Transparent Accident Investigation INTERCARGO

18. Automatic Identification Systems (AIS): Industry supports concept; but concerns remain about access to the information, security, terrorism, etc. IMO global solution: focus on local area systems. Long Range Identification and Tracking (LRIT); US proposing 2000 miles information. INTERCARGO Tracking Systems

19. European response – ETVs located and paid for by Governments IMO DE48 (the 48th session of the Sub-Committee on Ship Design and Equipment, Feb 2005) - proposed draft amendments to SOLAS regulation II-1/3-4 on emergency towing arrangements on ships other than tankers IMO DE48 correspondence group tasked to assess deck equipment to be used in emergency towing, and to submit a report to DE 49 (early 2006) INTERCARGO Emergency Towing Vessels

20. US Spill Response OPA 90: a great success for tankers Non-tank vessels required to have an oil spill response plan by Aug. 2005 Area contingency plans Ship management training INTERCARGO

21. Routing and Navigation IMO routing measures Particular Sensitive Sea Areas National measures must be risk based Charterers role INTERCARGO

22. Risk Assessment of Great Circle Route Assessment of incidents Work with US Coast Guard Work with State and National bodies Industry dialogue Define local and national policy INTERCARGO

23. Transparent Accident Investigations Local interests and Industry need quick investigations – rarely happens Obstacles include: - The legal process/politics - Protection & Indemnity Clubs (Insurance) - Flag of the Ship A just environment conducive to cooperation

24. Conclusion The industry maintains zero tolerance towards accidents. Progress has been made but more needs to be done. All Stakeholders must work together in a fair process to achieve safety and environmental protection. INTERCARGO is committed to this process. INTERCARGO

25. INTERNATIONAL ASSOCIATION OF DRY CARGO SHIPOWNERS Thank you for your attention

26. INTERCARGO