INTERTANKO

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INTERTANKO

• An Introduction Key issues facing the tanker
  industry today
• Presented by
• John C. Fawcett-Ellis
• Legal Counsel Regional Manager Asia-Pacific
• Dalian, 24 June 2004

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• representing responsible oil and chemical tanker
  owners worldwide
• promoting Safer Ships, Cleaner Seas and Free
  Competition

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• strict membership criteria based on quality and
  performance

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The International Association of Independent
Tanker OwnersINTERTANKO today

• 240 Members
• 2,200 tankers
• 160 million dwt
• Average age 13.5 years
• 270 Associate Members
• 27 Staff / 6 Consultants

Oslo
London
Singapore
Washington
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INTERTANKO in Asia - Pacific

• Membership
• Australia Botany Bay Shipping Group
• China Hebei Ocean Shipping Co, Cosco Dalian
  (Ass. Member), China Shipping, Nanjing Tanker
  Corporation Sinochem Shipping
• Hong Kong Anglo-Eastern, Associated Maritime,
  Eurasia, Fairmont, HK Ming Wah, Parakou, TCC,
  Unique, Wah Kwong Wallem
• Japan Daiichi Chuo, Daitoh Trading, Iino Lines,
  Kawasaki Line, Kyoei Tanker, Meiji Shipping,
  Mitsui OSK, Tokyo Marine, NYK, Nissho, Shinwa,
  Taiheiyo, Yuyo
• Malaysia MISC, Aurora, Sutrajaya, Barber
  Shipmanagement
• Singapore NAS, Petroships, PCL, Thome, TESMA,
  World Tankers,
• South Korea SK Shipping, Hanjin (Ass Member)

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INTERTANKO IN ASIA

• Regional Office opened in Singapore in 1999
• Regional Panel since 1998
• Executive Committee members
• - Mr KH Koo - TCC Vice Chairman,
• - Mr Joseph Kwok AET / MISC
• - Mr Shirakuma - NYK

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INTERTANKOs Objectives

• Powerful voice for the tanker industry
• Provide members with first class information and
  services

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A powerful voice for the tanker operators
worldwide

• IMO
• Dialogue with industry counterparts
• Partnership with USCG
• Lobbying on behalf of the tanker operators with
  EU Washington DC
• Washington State litigation Victory in the
  Supreme Court of the US

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Membership services

• Weekly news
• www.intertanko.com
• Advice to members on Operational/Technical/Legal
  matters
• Port Terminal information
• Freight and Demurrage Information Pool
• Terminal Vetting Dbase
• Practical publications on technical issues

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Key issues facing tanker operators

• ISPS Code enforcement
• Revisions to International Oil Spill Liability
  Compensation Regime
• Criminalisation of seafarers
• Restoring trust with regulators / image of the
  industy

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ISPS key issues

• Enforcement 1 July deadline
• - What if a vessel has had its security plan
  approved but does not have a certificate on
  board?
• - Detention if so for how long?
• - Will PSC target specific vessel types?
• Inspections by PSC
• - ensuring security does not compromise safety
• - Shanghai MSA were only given a month to
  train their inspectors
• C/P considerations
• - Laytime / demurrage
• - Additional port expenses

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Security clause Voyage ChartersKey
Considerations

• Validity of Notice of Readiness
• Allocation of the risk of delay to the vessel
• Provision of information by charterers
• Warranting compliance with ISPS code and other
  security regulations
• Allocation of costs, losses, liabilities
• Nomination of alternative ports

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Revisions to International Oil Spill Liability
Compensation Regime

• Current IOPC regime
• - CLC
• - Fund
• - Supplementary Fund
• Strict but limited liabilities for tanker owners
• Post incident fund by oil receivers
• Total compensation available approx 1bn USD

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IOPC the pressure for reform

• Should the regime not just compensate oil victims
  efficiently but also tackle sub-standard
  shipping?
• Advocates of reform Oil Companies, EU States
• Reform would most likely increase owners
  liability/insurance costs whilst sub-standard
  operators would continue and not care of the
  consequences

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Criminalisation of seafarers

• The master of the Prestige continued detention
  by Spanish authorities
• Disincentive to join the industry shortage of
  good crews
• No ship is safe without a responsible, well
  trained, motivated and happy crew
• Seafarers often not accorded the same human
  rights as others

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Restoring trust with regulators / image of the
industy

• The major incidents of the Erika (12.12.99) and
  the Prestige (19.11.02) have fuelled a massive
  regulatory attack on the tanker industry
• - Accelerated phase out of SH tankers
• - Pressure to reform the IOPC regime
• - Move to criminalise accidental pollution
• Major challenge to take control of our own
  industry show that the industry is responsible
  quality focussed zero tollerance not one
  drop of oil...

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Conclusion

• The world needs energy our industry is there to
  provide a safe, environmentally sound, efficient
  and cost effective transportation solution
• INTERTANKO is there to promote the tanker
  industry to encourage ever higher standards and
  technical innovation so that the industry may
  live up to the zero tollerance to pollution of
  the public and regulators alike

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THANK YOU????

• www.intertanko.com