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Leading the way; Making a difference An Introduction to Tanker Shipping Michele White General Counsel & Ajay Gour Senior Manager, Chemicals and Vetting INTERTANKO Tuesday, 23 July, 2013

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Leading the way; Making a difference

An Introduction to Tanker Shipping

‐Michele White ‐General Counsel

&‐ Ajay Gour ‐

Senior Manager, Chemicals and VettingINTERTANKO

Tuesday, 23 July, 2013

Leading the way; Making a difference

Leading the way; Making a difference

Leading the way; Making a difference

Leading the way; Making a difference

2005 ‐ $87,000

2007 ‐ $27,000

2008 ‐ $185,000

2009 ‐ $5,000

2012 ‐ $1‐2,000 or ‐$1‐2,000

Tanker market volatility – peaks + troughs

Leading the way; Making a difference

Leading the way; Making a difference

0

120

240

360

480

600

0

210

420

630

840

105019

78

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

Miscellaneous Fire/Expl

Hull & Machinery Grounded

Coll/Contact Oil pollution

Information is based on reports from Lloyd's Maritime Information Unit and The International Tanker Owners Pollution Federation

Tanker incidents ‐ all tanker types and sizes

Number of incidents

Accidental oil pollution from tankers was record low in 2011 and again in 2012

Leading the way; Making a difference

Leading the way; Making a difference

6

8

10

12

14

16

1970

1973

1976

1979

1982

1985

1988

1991

1994

1997

2000

2003

2006

2009

2012

Based on LRFairplay

Average age tanker fleet above 10,000 dwt

Years

Leading the way; Making a difference

235,9217,1

91,272,6

53,840,5

29,89,0

1,9

0 50 100 150 200 250

VLCC tankerBulk carrier

Product tankerGeneral cargo ship

Container shipFreight train

Ro-ro shipHeavy truck

Air plane

km

Transport distance for 1 ton cargo per kg GHG emissions

Shipping is energy efficient

Toyota Prius  ‐ 1 tonne, 1 kg CO2, 12 km

Source: Danish Shipowners Association

Leading the way; Making a difference

What we are:A voice for the tanker owners, a forum for debate, driver of standards and excellence.

What we do:Provide leadership to the tanker industry in serving the world with safe, 

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

What we work towards:A responsible, sustainable and respected tanker industry, committed to continuous 

improvement and constructively influencing its future ...... zero fatalities, zero pollution, zero detentions

Our influence:IMO Regulations;

UN/EU;

Flag States and National Bodies;

Industry Bodies – BIMCO; OCIMF; CDI; IUMI; IG etc

Leading the way; Making a difference

One of main aims:working for safety at sea + protection of marine environment

INTERTANKO is not interested in obstructing regulation, but in ensuring that the end result is fair and workable in practice 

Part of scope and objectives:co‐operating with technical, commercial, and environmental 

interests on issues of mutual concern; 

taking part in the deliberations of other international bodies 

aims, scope & objectives

Leading the way; Making a difference

International Association of Independent Tanker Owners

235 members (independent tanker owners)320 associate members (tanker industry)

3,380 tankers

285m dwt

43 countries

75% of independent fleet > 10,000 dwt

Leading the way; Making a difference

Annual General Meeting

Council

Associate Members Committee

Bunker Sub-Committee

Chemical Tanker Committee (CTC)

Insurance & Legal Committee

Environmental Committee Worldscale Committee

Executive Committee

INTERTANKO Safety, Technical and

Environmental Committee (ISTEC)

Documentary CommitteeVetting Committee

Offshore Tanker Committee (IOTC)

ASIAN PANEL

HELLENIC-MEDITERRANEAN PANEL

LATIN AMERICAN PANEL

NORTH AMERICAN PANEL

NORTHERN EUROPEAN PANEL

Management Committee

Human Element in Shipping Committee (HEiSC)

Chemical Tanker Sub-Committee Americas

Leading the way; Making a difference

Safety/Technical Seafarers Environment Marine Operations Regulatory / Legal

Damage stabilityInert gas

Shipyard standardsClass standardsFuel quality

Mercury in crude

CriminalizationCrew competence

Shore accessFair treatment of 

Seafarers

GHG emissionsBallast water

Reception facilitiesAir emissions

PiracyVetting

Port State ControlChemical operations

SanctionsLimits of liability

InsuranceOil spill compensation

Tanker designStructural Integrity

Machinery/equipmentFuel switchingSafe tank entryGas detection

BiofuelsCargo properties

Crew visasSeafarer ID documentsAccommodation space

Cadet berthing

Ship recyclingAnti‐Fouling

Waste managementNoise pollutionResponse mgmt.Hull biofouling

Ship striking mammals

Loadlines off S. AfricaLifesaving appliances

PilotagePort & TerminalsNavigation issues

Offshore operationsShip security alert sys

ISPS Code Security OfficersShip/Ship transfer

Accident investigation

Conflicts in lawUNCLOSLegislation

Charter party clausesFDIP

DemurrageIntellectual property

WorldscaleAnti‐corruption

Leading the way; Making a difference

Chartering – Documentary ‐ Legal and Insurance

Services to Members

Leading the way; Making a difference

DocumentaryCharterparty issues

Case law summaries

Charterparty forms

General advice and assistance

FDIP

INTERTANKO model clauses and guidance on their use

InsuranceInsurance issues

Oil pollution Conventions

IMO Legal Committee

IOPC Funds

Leading the way; Making a difference

• H & M Insurance• P & I Insurance/Claims statistics• War Risk Insurance• Pollution ‐ IOPC Fund – ‘Definition of Ship’• Criminalisation – Venezuela; Sao Tome• Piracy – East and West Africa• Bribery/Facilitation/Maritime Anti‐

Corruption Network

Current & Recent Work Issues – Insurance and Legal

Leading the way; Making a difference

• Vetting Clause• Completion/rotation Clause• Piracy Clauses for Time and Voyage 

Charterparties• STS Operations Clause• Interim Ports Compensation Clause• Sanctions Clause• Emissions Reduction Clauses (‘Virtual Arrival’)• UK Bribery Act 2010 Clause• Commingling/Cargo Additive Clauses

Recent Work Issues – Documentary

Leading the way; Making a difference

Safety/Technical Seafarers Environment Marine Operations Regulatory / Legal

Damage stabilityInert gas

Shipyard standardsClass standardsFuel quality

Mercury in crude

CriminalizationCrew competence

Shore accessFair treatment of 

Seafarers

GHG emissionsBallast water

Reception facilitiesAir emissions

PiracyVetting

Port State ControlChemical operations

SanctionsLimits of liability

InsuranceOil spill compensation

Tanker designStructural Integrity

Machinery/equipmentFuel switchingSafe tank entryGas detection

BiofuelsCargo properties

Crew visasSeafarer ID documentsAccommodation space

Cadet berthing

Ship recyclingAnti‐Fouling

Waste managementNoise pollutionResponse mgmt.Hull biofouling

Ship striking mammals

Loadlines off S. AfricaLifesaving appliances

PilotagePort & TerminalsNavigation issues

Offshore operationsShip security alert sys

ISPS Code Security OfficersShip/Ship transfer

Accident investigation

Conflicts in lawUNCLOSLegislation

Charter party clausesFDIP

DemurrageIntellectual property

WorldscaleAnti‐corruption

Leading the way; Making a difference

• Vetting• Close Liaison with all the Oil Major Companies

• Cost of inspections

• Over‐Inspection of Ships – Number & Time

• No faith in the SIRE system

• Limit the number of inspections

• Availability of inspectors

• Cancelation of inspections

• Sustainability of the Industry

• Chemical Operations• Application of Inert Gas

• Damage Stability

• Carriage of Bio‐Fuels

Leading the way; Making a difference

• Navigation• Pilotage• Under keel Clearance • LoadLines off South Africa

• Seafarers Welfare• MLC – 2006 Implementation

• Crew Competency

• Criminalisation / Fair Treatment

• Shore Access

• Environmental Issues• Ballast Water Regulations

• Different regimes• International• National/Regional• Local

• INTERTANKO Actions• IMO Response

• Reception Facilities

• Emissions

Leading the way; Making a difference

• GREENHOUSE GAS EMISSIONS• EEDI

• SEEMP

• MRV

• AIR EMISSIONS (SOx; NOx; VOC)• ECA Compliance related issues

• Regional developments

• Review of VOC management plans

• QUALITY CONTROL OF BUNKERS

• LNG as fuel – assessment of safety, operational and practical changes 

• QUALITY CONTROL OF EQUIPMENT (ref. MAN turbo‐chargers)

• LIFEBOAT SAFETY

• ROLE OF CLASS (as technical body)

SOME ISSUES ON THE ISTEC AGENDA

Leading the way; Making a difference

• Weekly NEWS• www.intertanko.com

– issue background and updates– port information

• disbursements• reception facilities

– Benchmarking Databases• SIRE• TMSA• LTiF• Crew Retention

– Presentations• Meeting Possibilities

– INTERTANKO tanker events– Committee meetings– Seminars/Workshops– Joint Intertanko/Intercargo Lunchtime Seminars

• LNG• Arctic Shipping• Bribery Act• Reporting of Incidents – ISM Code and Legal Privilege

A very valuable resource to the membership and to Industry

Leading the way; Making a difference

Thank You.