the round table of international shipping associations international shipping federation asian...

The Round Table of international shipping associations

International Shipping Federation

Asian Shipowners Forum

Hainan Province, PR of China

3 June 2008



The ROUND TABLEThe ROUND TABLE

of international shipping associationsof international shipping associations

• BIMCO

• INTERCARGO

• International Chamber of Shipping/

International Shipping Federation (ICS / ISF)

• INTERTANKO



The ROUND TABLEThe ROUND TABLE

of international shipping associationsof international shipping associations

MISSION• To work together to serve, represent and advance the international

shipping industry

VISION• A responsible and respected international shipping industry

meeting the expectations of its stakeholders

STRATEGIC OBJECTIVE• By acting in concert to avoid duplication on issues of consensus,

where the combined effort of the Round Table can exceed the sum of the individual efforts



The ROUND TABLEThe ROUND TABLE of international shipping associationsof international shipping associations

AGENDA

• SAFETY AND QUALITY ISSUESRoger Holt - INTERCARGO

• KEY ENVIRONMENTAL CHALLENGESTony Mason - ICS / ISF

• THE PEOPLE CHALLENGERobert Lorenz-Meyer - BIMCO

• GLOBAL GOVERNANCEPeter Swift - INTERTANKO



Safety and Quality IssuesSafety and Quality Issues

Roger Holt

Secretary General

INTERCARGO



INTERCARGOINTERCARGO

• The International Association of Dry Cargo

Shipowners Owner & Operator interests• Direct entry organisation• Promotion of Safety, Quality, Efficiency,

Protection of the Environment & Profitability

• Formed in 1980 by Mr. Antony Chandris



• 120+ full members and associates

• Inclusive of Operators as full members

• 800 bulk carriers over 10,000dwt

• Secretariat based in London



WORK PROGRAMME

• Air Emissions

• Common Structural Rules & Goal Based Standards

• Casualties & Transparency

• Criminalisation of seafarers

• Definition of a Bulk Carrier

• Environmental Legislation



WORK PROGRAMME (Cont.)

• Lifeboats• Loading Rates & Condition of Loading• Pooling & EU Competition Law• Port State Control: Performance &

Irregularities• Reception Facilities/MARPOL Annex V• Stowaways• Training & Manpower



How do Safety and Quality How do Safety and Quality interact ? interact ?



Safety and QualitySafety and Quality

Examples of safety issues considered atIMO MSC83:

- Goal Based Standards for new ship construction

- Safety of navigation- Definition of a Bulk carrier- General cargo ship safety- Piracy and armed robbery



Safety and QualitySelf regulation projects developed or being developedby the RTisa partners:• BIMCO

- The Standard Shipbuilding Contract- The Quality Coastal State

• ICS- Flag State Performance- Shipping Industry Guidance on Environmental Compliance

• INTERCARGO- Benchmarking of Bulk Carriers- Loading Rates

• INTERTANKO- TOTS- VOCON



BIMCOBIMCO

The Standard Shipbuilding Contract:

• Applicable to all ship types and in all jurisdictions

• Benchmark for shipbuilding contract provisions

• Developed after broad industry consultation

• Inclusion of the Green Passport



BIMCO – Quality Coastal StateBIMCO – Quality Coastal State

• VISION: Quality Ships trading between Quality Coastal States

• BIMCO sought broad support to enhance awareness of the important role of coastal states

• Coastal states have rights – AND obligations, such as ratification of international conventions and emergency response e.g. reception facilities, ports of refuge, fair treatment of seafarers etc.



BIMCO – Quality Coastal State

• A pro-active instrument to raise awareness of the role of Coastal States and highlight stakeholders’ expectations

• Maritime stakeholders must collaborate toraise awareness of Coastal States’ obligations and actively promote better coastal state governance

• Pilot study undertaken in support of the concept, in cooperation with ICS, INTERTANKO, INTERCARGO, NI, IALA, InterMEPA



FLAG STATE PERFORMANCEFLAG STATE PERFORMANCE

• Port State Control

(White/Black List)

• Non Ratification of Conventions

• STCW White List



GUIDANCE ON ENVIRONMENTAL GUIDANCE ON ENVIRONMENTAL

COMPLIANCECOMPLIANCE • Both Corporate and Individual

Responsibility

• ISM Code Includes Environmental Management

• Training for Seafarers (STCW)

• Board Accountability for Compliance



Statistics : Dry Bulk 10000+ dwt international traders

• Fleet growth – since 2007, > 1 Billion dwt….1/1/2007 - 6,084 1/1/2008 – 6,3432012 – 7,700 ?? (uncertainties !!)Demolitions in 2007 – only c 14

• Fairly static Casualties (total losses) but reducing trend overall

2006 – 7 ships : 37 lives2007 – 8 ships : 39 lives2008 - concerns about China-orientated quality

• Negative Performance Indicators : 2007 c/f with average of 2003-2006 : mixed results

Collisions, with other ships : - 0.5 %Groundings : + 31 % Engine Problems : + 32 %





DPI correlates to other performance scores

• Companies with high DPI scores tend to be targeted under port State control

• Of the 2007 Casualties; 6 of the 8 casualties were to “Category 8” and above companies or companies which traded outside the 3 main trading areas.




Rightship and vetting

• From 1 March 2008, Rightship (BHP, Cargill and RTZ) recognised the Intercargo DPI result as a legitimate assessment tool

• Bonus points awarded on a ship by ship basis; potentially equivalent to lifting the vessel score by a one-star rating



INTERCARGO – Iron Ore Loading Rates

• Terminal requirements

• Buoyant market → queuing → optimising loading

• CVRD - Brazil– 16 000 t/hr – Minimum ballast – 14 hr turnaround



INTERCARGO - Coal Loading Rates

• Terminal requirements• Buoyant market → queuing → optimising loading• PWCS – Australia

– List of 50 “Vessels No Longer Acceptable at PWCS”– Poor performing Vessels– Insufficient ballasting



On-going work:

• Manoeuvrability study

• Testing assumptions on a range of ships

• Potential further structural studies

• Further submissions to IMO



Tanker Officer Training Standards (TOTS)

– providing the tanker industry with a clear standard of tanker officer competence

• Eases compliance with officer matrix requirements• Enhances tanker officers’ understanding• Bridges the experience gap• Provides core competency training and verification

INTERTANKO



VOCON - a Shipboard Procedure for the Control of Atmospheric Pollution by Volatile Organic Compounds (VOCs) on loaded passage

• Requires no additional equipment • Reduces pollutants (by up to 80%)• Reduces Loss of Cargo

VOCON

INTERTANKO



Poseidon Challenge

- commitment to continuous improvement- commitment to working with all partners

Round Table Round Table of international shipping associationsof international shipping associations



Tripartite


• Developed in 2001 by Fred Tsao, past Chairman of INTERCARGO

• The first attempt to open a dialogue between:ShipyardsClassification SocietiesShipowners

• One meeting each year against a planned agenda



Heightening Awareness


RTisa has established:

Maritime Industry Foundation

- Includes a Knowledge Centre- Promotion of the Industry

Shippingfacts.com

- Provides key facts about shipping



Key Environmental Challenges

Tony Mason

Secretary General

ICS/ISF



INTERNATIONAL CHAMBER OF SHIPPING /INTERNATIONAL CHAMBER OF SHIPPING /INTERNATIONAL SHIPPING FEDERATIONINTERNATIONAL SHIPPING FEDERATION

• ICS – Technical/Safety/Environment/Legal

• ISF – Maritime Employers’ Association

• Members are National Shipowners’ Associations

(40 Members including: Australia/Cosco (China)/ Hong

Kong/ Japan/Korea/ Philippines/Singapore)



ICS/ISF – PRINCIPAL AREAS OF ACTIVITYICS/ISF – PRINCIPAL AREAS OF ACTIVITY

• International Regulatory Issues – IMO / ILO

• Legal Matters (IMO, UNCLOS, UNCITRAL, etc)

• Shipping Policy Issues (OECD, CSG, etc)

• Best Practice / Technical Publications



KEY ENVIRONMENTAL CHALLENGESKEY ENVIRONMENTAL CHALLENGES

• Air Pollution from Ships

• Greenhouse Gases

• Ballast Water Management

• Anti - Fouling / Bio – Fouling

• Recycling



AIR POLLUTIONAIR POLLUTION

• SOx, NOx, Particulate Matter, VOC

• Marpol Annex VI – Entered into Force 2005

• Review Concluded MEPC 57 - April 2007

• Amendments to be adopted MEPC 58 – October 2008

• Entry into Force – 16 Months Later

• Successful Outcome Re-Inforces IMO’s International System of

Regulations



MARPOL ANNEX VI REVIEWMARPOL ANNEX VI REVIEWMEPC 57 - SOxMEPC 57 - SOx

OUTCOME

Current Global Limit 4.5%

SECA Limit 1.5%

2010 ECA Limit to 1.0%

2012 Global Limit to 3.5%

2015 ECA Limit to 0.1%

2020 Global Limit to 0.5% (With Review in 2018)

2025 Global Limit to 0.5% (Irrespective of Review)

Alternative Compliance – Fuels or Abatement



MARPOLMARPOL ANNEX VI REVIEW NOx ANNEX VI REVIEW NOx

• Tighter Standards on New Ships

• Dependent on Compliant Engine Technology

• 1990-99 Engines – Install Kit if Available

• Possible Trade-Off with CO2 Efficiency



CO2 EMISSIONSCO2 EMISSIONS

• Shipping = 3-4% of Global Emissions

• IMO Targeting Outcome by MEPC 59 – (July 2009)

• UN Climate Conference (COP – 15) Copenhagen –

December 2009

• EU Threat to Take Action if No Positive Outcome

• Industry Should Support International System Through

IMO



CO2 – INDUSTRY POSITIONCO2 – INDUSTRY POSITION

• Commitment to Reducing the Impact of Shipping

• Shipping – The Irreplaceable Engine of World

Trade

• Shipping – The Greenest Transport Mode

• Strive to Improve Fuel Efficiency



CO2 - INDUSTRY ENGAGEMENTCO2 - INDUSTRY ENGAGEMENT

• Industry Initiatives

• Tripartite Group with Shipbuilders / Class

• Inter-Industry Group – 11 June

• IMO Intersessional Meeting 23 – 27 June

• Industry Submissions to MEPC 58



CO2 – THE WAY FORWARDCO2 – THE WAY FORWARD

• New Buildings - Hull- Engine- Propeller- Waste Heat Recovery

• Existing Ships - Slow Steaming- Operational Best Practice

• Alternative Fuels ?



CO2 – ISSUESCO2 – ISSUES• New Building / Operational Indices

• Fuel Levy or Emissions Trading?

• What Can We Achieve?

– Possibly 12 – 15% Reduction per Ship by 2020

• What Might Governments Want to Achieve?

– 20% Reduction in Total Emissions by 2020

Equals

Approximately 50% Reduction per Ship! Approximately 50% Reduction per Ship!



OTHER ENVIRONMENTAL ISSUESOTHER ENVIRONMENTAL ISSUESBallast Water Management:

• Convention Not Yet In Force

• “Date” Issue Resolved at IMO Assembly

• Equipment Now Being Approved and Guidelines Finalised

• Industry Should Support Ratification

Recycling:

• IMO Convention (Diplomatic Conference 2009)

• Industry Guidelines to cover Shipowner Best Practice Prior to Entry into

Force



The People ChallengeThe People Challenge

Robert Lorenz-Meyer

President Elect

BIMCO



BIMCO

• World’s largest private shipping organization • 2,500+ members and growing • Asian members represents:

– More than 10 per cent of BIMCO members.

– More than 1/3 of tonnage in BIMCO • BIMCO focus on Asia



The People Challenge

• Global challenge and competition for talent• Shortage of seafarers • Shortage of staff ashore – shipping offices

and yards• No quick fix – long term solutions



Global Governance for a global industry

Peter M SwiftManaging Director

INTERTANKO

SEEKING TO MAINTAIN - CONSISTENCY IN INTERNATIOINAL STANDARDS, and

- A LEVEL PLAYING FIELD



INTERTANKOINTERTANKOInternational Association of Independent Tanker Owners

290+ members operating ca. 2950 ships > 80% of independent oil tanker fleet and > 85% of chemical carrier fleet

- strict membership requirements, including adoption of best practice policies

350+ associate members: in oil and chemical tanker related businesses

15 Committees / 20+ Working groups – 5 Regional Panels

Principal Offices in London and Oslo Representative Offices in Asia, US and Brussels

Observer Status at IMO, IOPC, OECD and UNCTAD



INTERTANKO – The Voice of the Tanker IndustryINTERTANKO – The Voice of the Tanker IndustryMISSION• To provide leadership to the Tanker Industry in serving the

world with safe, environmentally sound and efficient seaborne transportation of oil, gas and chemical products

VISION FOR THE TANKER INDUSTRY• A responsible, sustainable, respected Tanker Industry,

committed to continuous improvement and constructively influencing its future

ONE OF THE ASSOCIATION’S PRIMARY GOALS• Lead the continuous improvement of the Tanker Industry’s

performance in striving to achieve the goals of:Zero fatalities, Zero pollution, Zero detentions

International Association of Independent Tanker Owners



Encouraging International RegulationEncouraging International Regulation and upholding of customary internationaland upholding of customary international law

• Supporting IMO with active participation

• Encouraging ratification of IMO (and ILO) Conventions

• Discouraging unilateral local, national and regional legislation

• Maintaining open dialogue in regional centres, e.g. Europe (Brussels), US (Washington) and elsewhere (incl. Asia)



Encouraging Ratification by States Encouraging Ratification by States of International Conventionsof International Conventions

IMO Conventions including:• International Convention on the Control of Harmful Anti-fouling

Systems on Ships (AFS), 2001 (*)• International Convention for the Control and Management of Ships’

Ballast Water and Sediments, 2004 • Annex VI: Prevention of Air Pollution from Ships, 1996: International

Convention for the Prevention of Pollution from Ships, 1973, as modified by the Protocol of 1978 relating thereto (MARPOL 73/78) (*)

• !996 Protocol to Convention on Limitation of Liability for Maritime Claims (LLMC), 1976

(*)Even though Entered/Entering into Force



Encouraging Ratification by States Encouraging Ratification by States of International Conventionsof International Conventions

Continued:

IMO Conventions including:• International Convention on Civil Liability for Oil Pollution Damage

(CLC), 1969• International Convention on the Establishment of an International Fund

for Compensation for Oil Pollution Damage (FUND), 1971• International Convention on Liability and Compensation for Damage in

Connection with the Carriage of Hazardous and Noxious Substances by Sea (HNS), 1996

• International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001 (*)

ILO Convention(s):• Seafarers' Identity Documents Convention (Revised), (C185), 2003• Maritime Labour Convention, (MLC) 2006

(*) Even though Entered/Entering into Force



Seeking consistency in International StandardsSeeking consistency in International Standards

FLAG STATES:• Full support for IMO Member State Audit scheme plus transparency in findings

• Responsible for undertaking casualty investigations• RT Guidelines on Flag State Performance

COASTAL STATES:• Quality Coastal State Project has been initiated• Objective is to encourage Coastal States to live up to their obligations, - ensuring fair and consistent processes




CLASSIFICATION SOCIETIES• Full support for the development of Common

Structural Rules for Tankers & Bulkers• Regular Dialogue with IACS on uniform

requirements and uniform interpretations, survey procedures, etc.

CLASSIFICATION SOCIETIES AND SHIPBUILDERS• Tripartite dialogue between international

shipbuilders, classification societies and shipowners

• Seeking uniformity of standards, e.g. coating performance; construction survey plans; commissioning; cadet berths, etc.




PORT STATE CONTROL• Encouraging better targeting procedures• Supporting greater harmonisation and

uniformity in procedures across Port State Control regimes

• Welcome recent decisions of Paris MoU for a common training programme and standards for PSCOs



Thank you !

谢谢大家

www.bimco.org

www.intercargo.org

www.marisec.org

www.intertanko.com

www.shippingfacts.com

www.maritimefoundation.com