1. Peter M Swift TANKERS TODAY & TOMORROW - Full Ahead !

2. US CIF oil price* - USD *Costs of oil transported from the Persian Gulf to LOOP

3. Tanker incidents1978-03 Source: LMIS, Informa, press, INTERTANKO Number

4. Accidental pollution from tankers 1,000 ts Largest spills since 1990 1991ABT Summer260,000 ts 1991Haven144,000 ” 1992Agean Sea 74,000 ” 1992Katina P 72,000 ” 1993Braer 85,000 ” 1996Sea Empress 72,000 ” 1999Erika 20,000 ” 2002Prestige 77,000 ” 2003Tasman Spirit 30,000 ”

5. Oil into the Sea Annual Releases, best estimates

6. Fleet by hull percentage

7. 2003 in Review Increased tanker demand – with extra emphasis on quality Accelerated introduction of new ships Proactive industry on standards and environmental measures Volatile but profitable markets Awakening investor interest

8. But………. Rampant Europe UNCLOS challenged Regional legislation then IMO fightback Partnerships challenged and under strain Seafarers criminalised And…………………. Pushes on transparency, image of industry

9. TANKERS TODAY And TOMORROW Full Ahead ?

10. Full Ahead on Environmental Issues ?  Anti-Foulings (Convention)  VOC Recovery  Sulphur Levels (in Fuel)  Recycling  Water Ballast Management

11. Full Ahead on Quality and Standards Working with Partners:  Class (and others) on Common Rules, Maintenance and Surveys, CAS etc.  Shipbuilders and Class in Tripartite discussions on newbuildings  Flag States with Flag State Guidelines  Port State Control and support of EQUASIS  Regulators – e.g. Partnership Agreement with USCG (Oily Water Separators), EMSA (Double Hulls in Service), IMO (GBS et al), EU et al (Air Emissions – Engine and Cargo)

12. PSC – an industry perspective Summary:  PSC is actively supported by industry  More needs to be done to ensure harmonised standards  Greater sharing of inspection records would be beneficial  It is an imperative that the integrity of PSC is maintained  Better targeting would result from additional analysis of PSC records  Important lessons can be learned by analysing PSC performance  Used as membership criteria by associations  Used in assessments by charterers, insurers and others

13. PSC Operational Issues – the shipowners’ perspective Need to ensure:  Harmonised standards and training of inspectors  Better / more rational targeting  Consistency in grounds for detention, naming of charterer, appeals procedure, etc.  Development of rewards / incentives

14. PSC Operational Issues – the shipowners’ perspective Need to ensure integrity of system:  ”Overly enthusiastic” inspectors  ”Selective” targeting  ”Soft option or easy” targeting  ”Malpractice” - self interest or third party interest  BUT Not all owners are ”guilt free”

15. Operational Issues in relation to PSC – the shipowners’ perspective Ideas to ensure integrity of system:  Regular and open dialogue between responsible owners and PSC officials  Development of ”best practices” within PSC regimes, e.g. With leadership from Paris MoU  Appropriate mechansims for confidential feedback  Reports back to IMO of PSC performance

16. Full Ahead with Partners ? Feedback mechanisms weak Openness and transparency doubted SHIPOWNER SHIPYARDS INSURERS TRAFFIC MANAGEMENT CARGO OWNER CHARTERER PORTS & TERMINALS CLASS SOCIETIES FLAG STATES

17. Tanker incidents 2003 - 130

18. Port State Control – detentions by ship size

19. Port State Control – detentions by year of build

20. Examples of where we could do better: Tanker Structure Cooperative Forum Industry guidelines and standards IACS development of Requirements and Procedures Port and Terminal Reviews Incident reporting and analysis, and casualty investigations Initiatives via Information Sharing

21. Impediments to information sharing: commercial competitiveness legal liability professional jealousy lack of incentives Information Sharing

22. A “Grey” fleet ? Picture source: OCIMF

23. Convention Ratification: AFS Convention (2001) Annex VI (Air Emissions) (1997) HNS Convention (1996) OPRC-HNS Protocol (2000) Bunkers Convention (2001) Places of Refuge Reception Facilities Port and infrastructure security The same commitment from politicians and regulators ?

24. Thank you www.intertanko.com