TANKERS ADAPTING TO NEW RULES AND REGULATIONS

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TANKERS ADAPTING TO NEW RULES AND REGULATIONS

• Peter M. Swift
• Managing Director, INTERTANKO

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International Association of Independent Tanker
Owners

• 260 members
• gt 80 of the independent oil tanker fleet and gt
  85 of the chemical carrier fleet
• 300 associate members
• in oil and chemical tanker related businesses
• 15 Committees - 4 Regional Panels
• Representative Offices in Europe, US and Asia
• One of the Associations primary goals
• Lead the continuous improvement of the Tanker
  Industrys performance in striving to achieve the
  goals of
• Zero fatalities, Zero pollution, Zero detentions

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Tankers Adapting to New Rules and Regulations

• AGENDA
• Fleet developments
• - Oil and Chemical fleets
• Adapting to ..
• - MARPOL revisions (principally Annexes I II)
• - ISGOTT
• - Common Structural Rules
• - Related developments/issues
• In the pipeline
• - Annex II revisions
• - Annex VI revisions
• Commitment to continuous improvement

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Tanker fleet development
m dwt
No
Assumptions for period until 2009 Scheduled
phase out for the period 15.5 m dwt including
4.2 m dwt that should already have been phased
out earlier than 2007 Assumed removals 2007
2009 29 m dwt (including conversion other
demolition)
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Record ordering - despite high prices (mdwt)
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Demolition slowed in recent years(mdwt)
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Average age steadily reducing (tankers above
10,000 dwt)
Years
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Double-hull percentage rising steadily

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(Single Hull) Tanker Phase Out- an uncertainty
post 2010
m dwt
Assumptions MARPOL phase out allows for trading
until the age of 25 years old, max 2015 The EU
alternative does not allow SH trading after
2010. DB/DS can trade until the age of 25 years
old, but here cut off 2015
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Chemical Carrier Fleet

• 70 of fleet double hull, almost all of remainder
  double bottom or double side average age 11.5
  years,
• Large order book (37 of existing fleet by dwt),
• Significant changes to MARPOL Annex II from Jan
  2007, principally in carriage of veg oils
  several uncertainties.

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Chemical tanker fleet by hull
number
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Chemical tanker fleet and age distribution
m dwt
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Reclassification of Annex II products
Type of change Reclassified from/to Products and volumes
Re-categorisation of vegoils, soft oils and fats D to IMO type 2, or IMO type 3 with DH meeting operational requirements Palm oil 27 m ts Soybean oil 10 m ts Sunflowerseed 3 m ts Other veg oils 3 m ts Tallow fatty acids 2 m ts Total approximately 50 m ts
Other products with no previous requirements on ship type IBC ch. 18 to IMO type 3 Methanol 17 m ts MTBE 5.5 m ts UAN 5 m ts MEG/TEG/DEG 5 m ts Methyl ethyl ketone, ethyl acetate 1 m ts
Change of ship type requirements IMO type 3 to type 2 Xylenes gt5 m ts Acrylonitrile lt1 m ts
No requirements No change Molasses 5 m ts Ethanol 3 m ts

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Major exporters of vegetable oils
m ts
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Further information available at
www.intertanko.com
The Revisions to MARPOL Annex II (entry into
force 1/1/2007) A Practical Guide
November 2006
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ISGOTT

• The International Safety Guide for Oil Tankers
  and Terminals
• Fifth Edition (2006)
• Principal changes are the recommendations
  covering
• Operating procedures with the introduction of the
  ISM Code
• Operating procedures for Tank Cleaning moving
  to Inerted or Not Inerted

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Common Structural Rules

• Championed from outset by owners
• Already implemented
• Experiences to be accumulated / revisions will
  follow in time
• Some shipyards struggling with coating
  performance requirements

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OTHER - (Industry views)

• MARPOL Annex I
• Woeful inadequacy in the provision of oily waste
  reception facilities
• Welcome for new requirements for the protective
  location of Bunker Tanks
• Need
• Reception facilities for Annex II cargoes
• Timely ratification of HNS Bunker Conventions
• To speak out against unjust Criminalisation

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Changes in the pipeline

• Chemical Carriers
• Proposals from the Inter-industry Group to amend
  SOLAS to provide for the application of inert gas
  to new oil tankers of less than 20,000 DWT and to
  new chemical tankers.
• Review of Dangerous Cargo Endorsements through
  STW.

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Changes in the pipeline

• Air Emissions
• Revision of MARPOL Annex VI
• Other local, national and regional regulations
• Of particular concern to tramp sectors, trading
  internationally

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Existing SECAs
MAY 2006
NOV. 2007
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Air emissions - shipowners concerns over
multiplicity of new requirements

• Expanded number of SECAs, some with different
  requirements
• Proliferation of port, state and regional
  requirements often conflicting
• Installation/retrofitting of
• - multi-fuel tanks,
• - scrubber technologies, exhaust filters, etc.
  (still to be proven)
• Onboard handling and disposal ashore of toxic
  wastes from exhaust gas scrubbing in addition
  to existing sludge handling problems
• Further fuel treatment processing
• Operational and safety concerns during fuel
  switchovers
• Additional fuel log record keeping and reporting
• Onus of responsibility falling solely on the
  owner/operator

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Our industry is committed to keeping Tanker
Shipping Safe, Reliable Cost Effective
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Accidental oil spill from tankers and tanker
trade
m bn tonne miles
m ts
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Reported tanker incidents reducing until 2005/6
!!
Number
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Tanker incidents 2006 by type
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Muchas Gracias For more information, please
visit www.intertanko.com www.shippingfacts.com
www.maritimefoundation.com