IMOEU Proposals to Amend MARPOL Annex I

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IMO/EU Proposals to Amend MARPOL Annex I

• Accelerated Phase-out
• Expanded Condition Assessment Scheme
• Ban on Heavy Oil in single-hulled tankers

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IMO/EU Proposals to Amend MARPOL Annex I

• IMO is the appropriate forum for this debate
• All such proposals must be subject to rigorous
  analysis and impact assessment
• Note decisions of only two years ago
• Concern that there are no compelling reasons for
  change
• Need stability and predictability to improve
  safety and environmental protection

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Tanker fleet double hull development
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Tanker fleet 5,000 dwt and above mid 2003 by
year of build and hull-type
Number
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IMO/EU Proposals to Amend MARPOL Annex I

• Accelerated Phase-out
• Withdrawal Peaks in 2003/2005 and 2010
• Many young tankers withdrawn prematurely
• Will
• Destabilise freight, shipbuilding and ship
  recycling markets
• Unsettle business planning environment
• Destroy USD 4 bn. asset values

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Single-hull tanker phase-out 5,000 dwt and above
Number
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Tanker age profile-deliveries-phase-out
Number
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Phase schedules - million dwt
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Phase schedules - number
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IMO/EU Proposals to Amend MARPOL Annex I

• Expanded Condition Assessment Scheme
• Inconsistent logic CAS from 15 years of age,
  but tankers withdrawn irrespective of this
  provision
• CAS might require revisions if it is to be
  applied as proposed
• It will not be possible for all 15 y.o. Category
  2 and 3 tankers to undertake CAS before April
  2005

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IMO/EU Proposals to Amend MARPOL Annex I

• Ban on Heavy Oil in single-hulled tankers
• Principal concerns
• Definition of heavy crude oils
• Impact on certain oil trades
• Short term availability of double hull tonnage in
  certain shipping sectors, e.g. Panamax and
  possibly Aframax

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IMO/EU Proposals to Amend MARPOL Annex IOTHER
ISSUES

• EC417/2002 Revisions from September 2003
• EU interpretations
• Impact on smaller ships
• CAS for double hulls

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INDUSTRY TRIPARTITE MEETING29/30 September,
Seoul Shipowners (Round Table OCIMF), Far
Eastern Shipbuilders, IACS and individual
Classification Societies

• Towards a rational and quality industry
• Newbuilding standards
• Shipyard capacity shipbuilding demand - better
  information sources
• Roles and relationships
• Industry benchmarks and standards
• - awareness guides, etc.