Erik Ranheim

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

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INTERTANKO International Association of
Independent Tanker Owners
advocating
Safe Transport Cleaner Seas Free Competition
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Issues facing tankers

• Middle East essential for tankers
• Safety performance
• PRESITIGE accident
• Possible consequences

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Source Fearnleys, IEA, INTERTANKO
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Control of the tanker fleet
Source EA Gibson
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Oil companies reducing fleets
 
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Cost elements - Gasoline price at the pump
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Tankers performing well
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Accidental oil spill from tankers tonnes spilt
per billion tonne mile transported
Source ITOPF/Fearnleys
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Accidental oil pollution from tankers and
seaborne oil trade
Bn tonne-miles
000 tonnes
99.995 safe arrival in 2002
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Reduced number of incidents
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Tanker Incidents 2001
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Modernisation tankers
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PRESTIGE
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PRESTIGE (Bahamas)

• Built 1976, Hitachi Japan for MOC
• DWT 81,564
• Mare Shipping Liberia/Universe Maritime, Greece,
• Member INTERTANKO (79)
• Cargo HFO/SG 0.99
• Load port , Ventspils, Latvia
• Discharge port, Singapore
• Damaged 13 December - Sunk 19 December
• Clean record

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PRESTIGE issues

• Major spill of heavy fuel oil
• Initial cause of hull failure?
• Could the ship haved been saved - Port of Refuge
• Liability
• Arrest of Capt. Mongouras
• The credibility of the industry is at again
  stake

Capt. Mongouras 32 years experience
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ABS, 3 DecNo apparent structural cause has yet
been determined
Source ABS
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Tanker structure/corrosion

• ESP spring 2001, quality of steel replacement?
• Storage with HFO containing H2S
• Ballasting to rectify list, strongly increased
  bending moment
• Increased stresses due to restart of engine
• Forced out to open rough seas

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(No Transcript)
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Who is to responsible and who failed?

• 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
• PI
• claims handling

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Overreaction counter-productive
A sound industry needs predictable contitions
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Possible measures Draft Council Conclusions

• 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

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Possible measures Draft Council Conclusions

• Accelerated phasing out of single hull tankers ,
  CAS from age of 15 years
• Not accept SH tankers carrying the heaviest
  grades of oil
• 25 target of Port State Control,
• EMSA, quality, uniformity inspections

number
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Phase-out VLCCs
Total 436 ships, 217 DH, average age 10.1 years,
orderbook 64
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Phase-out Suezmaxes
Total 266 ships, 173 DH, average age 9.8 years,
orderbook 55
No
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Phase-out 60-119,999 dwt
Total 780 tankers, 384 DH, average age 13.2 years
,203
No
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Proposed EU reg. single-hull tanker phase-out
5,000 dwt
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Prestige Issues

• Heavy grades of oil in DH tankers
• Changing trade patterns
• Position of IMO threatened
• Fragmentation regulations - inflexible markets
• Think before act

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INTERTANKO looking after the interest of the
tanker industry
 
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Tanker market stagnating
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OPEC/non-OPEC crude oil production 1971-2002
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European oil imports by source 12.5 mbd in 2002
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US crude oil production and net crude oil
imports 1983-2003 (est.), monthly
Source EIA
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Tankers sold for recycling by receiving country
mil dwt