intertanko seminar madrid 2 december 2004 peter m swift

INTERTANKO Seminar

Madrid

2 December 2004

Peter M Swift

Antitrust Compliance Statement

INTERTANKO is firmly committed to maintaining a fair and competitive environment in the world tanker

trade, and to adhering to all applicable laws which regulate INTERTANKO’s and its members’ activities in

this market. These laws include the antitrust laws, which the US, the European Economic Community and many nations of the world have adopted to preserve the free enterprise system, promote competition and

protect the public from monopolistic and other restrictive trade practices.

This meeting will be conducted in compliance

with INTERTANKO’s antitrust guidelines .

2005 : DATE FOR THE DIARY

April 10-13 Athens

Council, Annual Tanker Event, AGM

Council Agenda – Amsterdam, Oct. 2004

• IOPC Conventions• Maritime Security• Goal Based Standards• Chain of Responsibility• Massachusetts State Law• Air Emissions Regulations• Committee Reports – Vetting, Chemical, other• Membership criteria – Ship Managers• Membership drive• Alliances & cooperation with other Associations• 2005 Budget and Fee Structure

INTERTANKO’s Vision for the tanker shipping industry:

“ A responsible, sustainable and respected industry able

to influence its own destiny.”

Major Issues for the Tanker Industry

• Liability limitations under threat• Criminalisation for pollution incidents• Common Structural Rules for Tankers• Maritime Security• Phase-out uncertainties• Recent chemical tanker accidents• Challenges to the international regulatory

structures

Phase out tankers - dwt

0

10

20

30

40

50

60

70

-200

220

0320

0420

0520

0620

0720

0820

0920

1020

1120

1220

1320

1420

15

MARPOL*

EU

Phase out year

*subject to administrations

The changing maritime landscape

• Politicization of technical regulation

• Threat to authority of IMO

• Threat to international law

• Criminalisation of companies and seafarers

Our AIMS / Key industry goals

• Regulatory environment which supports safe shipping operations, environmental protection and adherence to internationally adopted standards and procedures

• Properly considered international regulation of shipping

• Global regulation for a global industry

Increasing politicization of regulation

Examples:• Phase out of single hull tankers• West European Particularly Sensitive Sea Area • Moves to open up CLC/FUND and link with

substandard shipping• Maritime security (e.g hijacking of AIS)

Why? Port states versus flag states, and reduced influence of maritime constituency

HOW IT WAS: Examples of positive regulatory developments (the “IMO spirit”)

• ISM Code and STCW (training)• post ‘Estonia’ passenger ferry measures• IMO bulk carrier safety package• Development of ILO ‘Super Convention’

Outcomes broadly based on technical merits of arguments put forward. Industry viewpoint understood, if not always accepted.

HOW IT IS: The Challenges Today

• More political drivers and less consideration of the technical, operational, and commercial interests

• More unworkable, inconsistent and illogical regulation and less consideration of the practical aspects

• More pressure for local / regional regulation and less willingness to adopt and apply international regulation

Threat to authority of IMO

Global industry needs global regulation

• IMO agreed to acceleration of single hull phase-out (twice), but under duress

• EU Directives going beyond MARPOL

• Interference of UN in New York – genuine linkage to flag

CHALLENGES TO INDUSTRY GOVERNANCE

International vs. local, national and regional

• Liability – EU Penal Sanctions vs. International Conventions

• Safety & Environment – EU (Post Erika & Prestige) vs. IMO/Marpol & SOLAS

• Sulphur Levels / Air Emissions – EU, USA vs. IMO

• Security – MTSA vs. ISPS

• Ballast Water Management – US et al vs. IMO

Threat to international law

• Escorting of single hull tankers out of EEZ by Spain, France et al, in contravention of MARPOL and UNCLOS obligations

• Detention of seafarers, e.g. in Spain and Pakistan in contravention of UNCLOS

• European Commission suggestion that UNCLOS might be revised to alter the balance between flag states and coastal states.

• Willingness of EU to implement measures in conflict with MARPOL

Criminalization

• Imprisonment of seafarers (Captain Mangouras)

• Activities of US Department of Justice (bounty for whistle blowers)

• EU Directive on Criminal Sanctions (including accidental damage)

• SUA (Suppression of Unlawful Acts) Convention

Action in Brussels

• Dutch Presidency, New Commissioner and Commission staff, New Parliament and MEPs

• Sulphur levels in fuels still a major issue

• EMSA Double Hull panel making progress ?

• New Maritime safety Package under discussion – “Erika III”

Commission(The executive)

Brussels - The main ”players”

EuropeanParliament

(Direct election)

Council(Member States)

EMSA

EU Maritime Safety Package• Marine Casualty Investigations in the EU

• Amendment to Directive on Vessel Traffic Monitoring and Information

• Liability and Compensation

• Flag State Initiative

• Recasting of Legislation on Port State Control

• Maritime Labour Standards

But how about earlier programmes – Places of Refuge, Ratification of Conventions, Alignment of EU Regulations with IMO revisions ?

Action in the US

• Increasing support for signing UNCLOS

• Presidential support for ratification of Annex VI

• Overturning of proposals for escort tugs

BUT

• Pressure at state and federal level for regulation of Air emissions, Ballast Water controls, Spill response and more

• Massachusetts State Law

Action at the International Level

• Ratification of Key Conventions:HNS / Bunker Convention / HNS-OPRC Protocol / AFS

• Action on:Places of Refuge / Port Reception Facilities / Annex VI

• Support for FLAG STATE AUDIT

Examples of Round Table cooperation:

• Improved dialogue with IACS

• Tripartite meetings of owners, builders and class

• Flag State guidelines

• Industry guidelines on Recycling

• The “image” of shipping

Round Table Cooperation

www.shippingfacts.com

INTERTANKO News

• Pro-active Environmental Programme

• New Charter Party Clauses

• New Publications

• Q88 going from strength to strength

• Terminal Vetting Database going strong

• “Image” programme

INTERTANKO’S ENVIRONMENTAL PROGRAMME

• Port Reception Facilities – Forum, IMO and EU

• Recycling – renewed challenges for industry

• Ballast water management – a difficult road ahead

• Air emissions under review around the world

Recently published INTERTANKO charter party clauses

• Maritime Security Clauses for Time and Voyage Charters

• Material Safety Data Sheets (MSDS) Clause

• Port Costs Worldscale clause

Hot off the Press

• A Guide to bunkering of ships for the purposes of Annex VI to MARPOL

• A Guide for correct entries in the Oil Record Book

• A Guide to Crude Oil Washing and Cargo Heating Criteria

• Tanker Bills of Lading - A Practical Guide

Popular Publications- firm favourites

• Tanker Specification Awareness Guide

• A Guide to the Vetting Process, 5th. Edition

• A Guide to Tanker Charters (2001)

In the Pipeline

• Guiding Principles to Emergency Management and Crisis Communications - available imminently

Q88 Tanker questionnaire generator

New service for members

THE “IMAGE” DEBATE

• Raising awareness - public, media, politicians & regulators; www.shippingfacts.com

• Meeting the Press – mainstream & shipping

• Improved preparedness for incident management

• Education initiatives – Maritime Industries Foundation

Muchas graciasThank you

www.intertanko.com

www.shippingfacts.com

Accidental oil pollution from tankers and seaborne oil trade

Bn tonne-miles’000 tonnes

0

250

500

750

1,000

1990-96 1997-03

0

18,000

36,000

54,000

72,000

m ts spilt

bn tonne-miles

Tanker incidents 2003 - 130

12%

25%

24%25%

14%

Collision

Groundings

Hull&machinery: 28

13 engine,6 steer/prop/rudder5 hull5 other

Fire&Expl.

Misc.

.

dw t. Tankers involved

36 below 10,00038 10-29,999 dw t35 30-99,999 dw t17 > 100,000 dw t

Age tankers involved :

24 built 1970s or earlier48 built 1980s43 built 1990s12 built 2000s, 3 unknow n

7 involving pollution of

which Tasman Spirit most serious

Oil into the Sea Annual Releases, best estimates

Average 1990-1999, '1000 ts

Natural seeps

Extraction of oil

Tanker accidents

Tanker operation

Other transportation

River and run-offs

Other shipping

Other consumption related

Source: National Academy of Science

47%

21%

11%

8%

3%

3%