INTERNATIONAL ASSOCIATION OF DRY CARGO SHIPOWNERS

INTERNATIONAL ASSOCIATION OF DRY CARGO SHIPOWNERS

Annual Review 2003

INTERNATIONAL ASSOCIATION OF DRY CARGO SHIPOWNERS

Intercargos vision is for a safe, efficient and environmentally friendly dry cargo maritime transport industry where its members ships serve world trade operating competitively, safely and profitably. Intercargo, the International Association of Dry Cargo Shipowners, represents the interests of 62 Full and 49 Associate members who between them own or operate about 800 dry cargo ships. Promoting the interests of our member companies in regulatory fora such as IMO and IACS, Intercargo works closely with the other members of the Round Table of international maritime associations (BIMCO, ICS and Intertanko) to promote a safe, high quality, efficient and profitable industry.

The Chairmans message

The alliance between Intercargo and Intertanko is progressing well and I am pleased to be able to report that the two associations have moved to new shared offices with a single secretariat providing services to both associations coming on stream in the New Year. I am confident that members will see improvements to the service as a whole. It is a pleasant change for me to be able to report that the last twelve months have provided bulk carrier owners with a strong freight market. Strong dry bulk freight markets are traditionally more pronounced in the Capesize fleet than in other sectors and this market is no exception. Handysize, Handymax and Panamax daily rates have all doubled since August 2002 but Capesize rates have tripled. The shipping industry is at an interesting stage of development. Whereas some economic indicators are somewhat uncertain, the effects of the development of trade with China are hugely significant. China is expanding its import requirements at a significant rate. It is important that Intercargo focuses on the impact to shipping of the current industrial development in China. An important result of this increase in trade will be the demand for new ships. Plans are well advanced to expand the shipbuilding industry in China and there must already be some concern that too much capacity is being planned. Overcapacity will put great pressure on a range of industries, not least of which will be shipowners and shipbuilders. Weak freight markets tend to follow a short way behind the inception of aggressive shipyard commissioning and the seeds for such an outcome may already have been sown. In the past, shipping has suffered under the inevitable downward pressure on design standards resulting from the need to remain competitive. Let us ensure that we do not fall into that trap again. Intercargo has promoted a number of new initiatives during the year and these are being actively progressed. Work continues with the formation of the Shipping Alliance which is a natural extension of the Direction Paper and which seeks to include more industry stakeholders in the process for change. I firmly believe that the existence of a strong Shipping Alliance will go a long way to securing a more cohesive industry capable of providing the desired leadership and outcome. The rule maker and the regulator have been omnipresent during the period of this Review. The industry is only now coming to grips with some of the wider implications of the new rules and regulations. Intercargo maintains the position that quality and safety issues are paramount, but at the same time, recognises that shipowners are being faced with some difficult and potentially expensive choices. Our industry demands strong leadership and representation so that shipowners and managers can be left alone to get on with the job in a climate of trust and self-regulation. Unfortunately, there are many outside agencies which seek to minimise the industrys scope for self-regulation. I believe that Intercargo has a vital leadership role to play and I would urge the membership to engage proactively in the issues that are currently under discussion especially in the technical arena. I have thoroughly enjoyed being your Chairman and I should like to thank the Secretariat for their considerable efforts and professionalism during the year. They are looking forward to the challenges which await them in forging a common secretariat with their Intertanko colleagues and at the same time providing an enhanced service for the membership of Intercargo.

INTERNATIONAL ASSOCIATION OF DRY CARGO SHIPOWNERS

The Dry Cargo year

Major progress has been made during the year in creating a closer Intercargo and Intertanko working relationship. The reality of a single secretariat providing services to both associations will be in place in the New Year. This is a bold step forward and is one that we confidently expect will provide enhanced efficiency in handling industry issues and will also provide a better service for our members. The Technical summary elsewhere highlights the fact that a large number of new rules and regulations have been formulated. These concern bulk carrier safety and other topics such as ship security and marine environment protection. Flag State determination to effect change has meant that Intercargo has been unable to fully support and equally has been unable to prevent many of these new rules and regulations. For example, in the future it is expected that new bulk carriers >150m LOA will be required to be of double side skin construction. Intercargos submission to MSC76 stated that the decision to build double side skin or single side skin designs should be a commercial decision and that it should be possible to build a single side skin bulk carrier which is fit for purpose. whole must be continually encouraged to improve its level of safety and quality. The fact remains that when rules and regulations are handed out to the industry there is no differentiation between the good and the bad operator.

Green Award
Whilst there are very few clear financial incentives for quality owners, 2003 marked the start of the Green Award programme for dry bulk carriers. A number of ports are in discussion with Green Award about providing incentives for ships that have been accredited under the Green Award programme.

Casualty Report
Last years bulk carrier casualty record continued the long term trend of improvement but with regulatory input increasing, any return to 1980s and 1990s casualty levels will certainly result in further draconian measures.

Port State Control

The port State control record of Intercargo members remains significantly better than the industry average. However, members cannot afford to drop their guard and the industry as a

Places of Refuge
The Prestige casualty, which occurred at the end of last year, was another setback for the entire maritime industry. Intercargo is particularly interested in the ongoing discussion

INTERNATIONAL ASSOCIATION OF DRY CARGO SHIPOWNERS

concerning Places of Refuge and it is to be noted that EU countries missed the 1st July deadline for producing their list of places where refuge could be taken. This was most unfortunate.

in this case we remain confident that the final outcome, expected in 2004, will be a vindication of our efforts to stop this practice.

Security
The details of the ISPS Security Code now well known are yet another regulation that the shipowner and his crew will have to implement. The human element factor inherent in the withdrawal or amendment of seafarers visa requirements is being actively monitored.

The Round Table The United Front of Shipping

One area of very positive progress during the last 12 months has been the level of co-operation which has developed between the members of the Round Table of international maritime associations BIMCO, ICS, Intercargo, and Intertanko. The Round Table is proving to be a very good voice for the industry and has been responsible for issuing a number of important press releases and communications with Administrations. Further progress with this co-operation is expected and with it a greater sense of leadership for the industry.

Mississippi Exclusive Towage

Unacceptable operational issues such as the use of exclusive tug contracts on the Mississippi River continue to be opposed by Intercargo and

INTERNATIONAL ASSOCIATION OF DRY CARGO SHIPOWNERS

Technical, Safety and Quality

This year saw the International Maritime Organization (IMO) agreeing, in principle, to a comprehensive package of measures aimed at addressing bulk carrier safety. New bulk carriers will, for example, be required to be constructed with double hulls and free-fall lifeboats, while existing ships will have to comply with a number of measures designed to counter known problem areas. The strengthening of the side frame structure and hatchcover securing arrangements and the banning of alternate hold loading, are among those measures that were discussed. All bulk carriers will also have to fit water ingress alarms in their holds. What started life in March 2002 as the 8 initiatives was rationalised by IACS last year, which has resulted in separate packages of statutory and classification measures that are largely, but not exclusively complementary. Industry always, of course, has concerns when it is faced with extensive regulation, and it has been only a few years since SOLAS chapter XII was introduced. What is hoped is that the need for piecemeal rule-making in the future will now be removed, so providing the degree of certainty which shipowners expect. The Bulk Carrier Casualty Report, produced by Intercargo each year, continues to show a downward trend in the numbers of bulk carriers and crewmembers being lost. This is, of course, a very encouraging sign, and one that should continue as all the new rules that have been introduced over the last ten years or so, continue to take hold. The one other area of control over shipping that also continues to evolve, is port State control. Of particular significance are the rule changes introduced in July this year by the Paris MOU, which are aimed at targeting high-risk ships. Bulk carriers that fly a black listed flag and have a history of detentions might, for example, be banned from Paris MOU ports. The new maritime security regulations and the International Ship and Port Facility Security (ISPS) Code which enter into force in July 2004 will effectively extend the port State control inspection regime from ports to port approaches. Intercargo held a seminar for its members in Kuala Lumpur, Malaysia early in the year, to promote the exchange of ideas and to share any early implementation experiences. When MARPOL Annex VI, which deals with air pollution from ships, finally enters into force and if the Anti-fouling and Ballast water management conventions ever enter into force, further inspection opportunities will exist which could, for example, involve port States routinely taking paint or water samples to verify compliance. Intercargo has revised its Port State Control Guide to take these, and other matters, into account. It is available to members on the web site, as is the latest Bulk Carrier Casualty Report.

INTERNATIONAL ASSOCIATION OF DRY CARGO SHIPOWNERS

Management and Committees

Executive Committee 2003-2004
Chairman: Frederick Chavalit Tsao IMC Shipping Co Pte Ltd Vice Chairman: Gian Savasta Premuda Bulk Ltd Vice Chairman: Pierre Gehanne - Cetragpa and Louis Dreyfus Armateurs Giuseppe Bottiglieri Bottiglieri di Navigazione SpA George Dalacouras Dalex Shipping Co SA Nicholas Fistes Coeclerici Ceres Bulk Carriers NV Shigeki Fukuda Daiichi Chuo Kisen Kaisha Pierre Gehanne - Cetragpa and Louis Dreyfus Armateurs Huang Shaojie Hong Kong Ming Wah Shipping Co Ltd Ed Karelse VOC Shipholdings BV Hiromitsu Kuramoto NYK Line Seunggwon Lee SK Shipping Takeshi Matsui Sanko Steamship Co Ltd John Platsidakis Anangel Maritime Services Inc Stefano Pinto Coeclerici Armatori SpA Spyros Polemis Seacrest Shipping Co Masao Sagara Mitsui OSK Lines Gian Savasta Premuda Bulk Ltd Einar Skogstad Belships Trading ASA Benot Timmermans BOCIMAR Alan Tung Island Navigation Corporation International Wang Chunlin Sinotrans Shipping Ltd. Wang Kunhe China Shipping (Group) Company Dato Hj. Mohd. Ali Hj Yasin Malaysia International Shipping Corporation Berhad Xu Zunwu COSCO (HK) Shipping Co Zhang Liang COSCO Bulk Carriers Co Ltd Note: In September 2003, Intercargo discussed the expansion of the Executive Committee.

Chairmen of other Intercargo Committees and Panels

Asia Panel: Position vacant CASTEC (Safety, Environmental and Technical): Michael Shuker Ceres Hellenic European Panel: Pierre Gehanne Cetragpa and Louis Dreyfus Armateurs London Committee: Michael Parker Citibank

Secretariat 2003-2004
Roger Holt: Secretary-General Robert Lomas: Intercargo Manager Xianyong Zhou: Technical Manager Nigel Scully: Technical Consultant (retiring end 2003)

INTERNATIONAL ASSOCIATION OF DRY CARGO SHIPOWNERS

The Association
Membership and leadership
Positive engagement with shipowners and other parties in order to create a unified and worthwhile presence is one of Intercargos primary objectives a function which will be enhanced in the coming years as Intercargo and Intertanko work increasingly closer together to create even better services for their respective memberships. For those undecided about membership, membership of Intercargo offers the opportunity to effect change or resolve problems that would not be possible for individual shipowners. Membership of, and participation in the activities of a trade association can effect change.

What Intercargo offers the potential member is : I Support of a membership committed to the quality ideals outlined in the Direction Paper I Involvement in a proactive and inclusive Committee structure I Representation at IMO and other important international Committee structures. I Access to high quality secretariat, web and paper based information services, including unique
publications such as the Annual Casualty Report and the recently updated Port State Control Guide.

To join Intercargo
Intercargo welcomes applications for Full Membership status from shipowner members and Associate Membership status from companies or organisations providing goods or services to dry cargo shipowners. Further information on what Intercargo has to offer may be obtained on request from the Intercargo Manager.

Intercargo on the move

With effect from 1 October 2003, Intercargo moved to shared office accommodation with Intertanko. The address is now:Ninth Floor St. Clare House 30-33 Minories London EC3N 1DD

Tel : +44 207 977 7030 Fax +44 207 977 7031 E Mail (general) : info@intercargo.org (all e mail addresses unchanged) Website : www.intercargo.org

Photo Credits: Fafalios Ltd, Island Navigation Corporation International Ltd, NYK Line, Sanko Steamship Co Ltd.

INTERNATIONAL ASSOCIATION OF DRY CARGO SHIPOWNERS

Membership
ABS Nautical Systems LLC
www.abs-ns.com

Daiichi Chuo Kisen Kaisha

www.firstship.co.jp

International Assoc. of Classification Societies

www.iacs.org.uk

Rina SpA
www.rina.it

American Bureau of Shipping

www.eagle.org

Dalex Shipping Co SA
www.dalex.gr

International Registries (UK) Ltd

www.register-iri.com

Russian Maritime Register of Shipping

www.rs-head.spb.ru

Anangel Maritime Services Inc

www.anangel.gr

Det Norske Veritas AS

www.dnv.com

Anglo Eastern Ship Management Ltd

www.angloeasterngroup.com

Dex Serv Ltd

www.topdex.com

Island Navigation Corporation International Ltd

Hong Kong SAR Tel: +852 283 33222

Rutter Technologies Inc.

www.ruttertech.com

DLA
www.dla.com

Baltic Exchange
www.balticexchange.com

John P. Pedersen & Sons

Norway Tel: +47 24 14 95 00

Sanko Steamship Co Ltd

www.sankoline.co.jp

Dorchester Maritime Limited

www.dml.co.im

Banchero Costa & Co SPA

www.bancosta.it

Drewry Shipping Consultants Ltd

www.drewry.co.uk

Klaveness (Torvald Klaveness Konsern AS)

www.tk-group.com

Scinicariello Shipping Co
www.scini.com

Belships Trading ASA

www.belships.com

Seacrest Shipping Co
UK Tel: +44 (0) 20 7377 0966

E.A. Gibson Shipbrokers Ltd

www.eagibson.co.uk

Korea Register of Shipping

www.krs.co.kr

Bisso E. N. & Son, Inc

www.enbisso.com

Eastern Mediterranean Maritime

www.eastmed.gr

Liberty Maritime Corporation

www.libertymar.com

Shipping Corporation of India Ltd.

www.shipindia.com

Bocimar
www.holding.cmb.be

Bottiglieri Di Navigazione SPA

www.bottiglieri.it

Eastern Shipping Associates Pty. Ltd

Australia Tel: +61 294 020 642

Lloyds Register
www.lr.org

Sigma Coatings Marine Division

www.sigmacoatings.com

Lyras Shipping Limited

UK Tel: +44 (0) 20 7324 5800

Simon Montolio Y Cia S.A.

www.smontolio.com

Braemar Seascope Ltd

www.seascope.co.uk

Empros Lines Shipping Co

www.emproslines.com

Brave Maritime Corp Inc

www.vafiasgroup.gr

Eurocarriers S.A.
www.eurocarriers.gr

Malaysia International Shipping Corporation Berhad

www.misc-bhd.com

Simpson, Spense & Young Shipbrokers Ltd (SSY)

www.ssyonline.com

Britannia Steamship Insurance Association Ltd

www.britanniapandi.com

Fafalios Ltd
UK Tel: +44 (0) 20 7696 0701

Martek Marine Ltd.

www.martek-marine.com

Sinotrans Shipping Ltd

www.sinotrans.com

Fearnleys A/S
www.fearnleys.com

Bureau Veritas
www.bureauveritas.com

Mitsubishi Ore Transport Co Ltd

www.mitsubishi.or.jp

SK Shipping
www.skshipping.com

Franco Compania Naviera

www.franco.gr

Casocobos, S.A
Spain Tel: +34 985 175 216

Mitsui O.S.K Lines Ltd

www.mol.co.jp

Assuranceforeninigen Skuld
www.skuld.com

Assuranceforeningen Gard
www.gard.no

Centralog Ltd.
www.centralog.si

Germanischer LLoyd
www.germanlloyd.de

Multiport Ship Agencies Network

www.multiport.org

Star Shipping
www.starshipping.com

Ceres Hellenic Shipping Enterprises Ltd

www.ceres.gr

Global Maritime Ventures Berhad

www.gmvgroup.com

N.S. Lemos & Co Ltd

UK/Greece Tel: +44 (0) 20 7481 8921

Steamship Insurance Management Services Ltd

www.simsl.com

Cetragpa GIE (Louis Dreyfus Armateurs)

www.cetragpa.fr

Nippon Kaiji Kyokai (Class NK)

www.classnk.or.jp

Gourdomichalis Maritime SA
www.gmsa.gr

Target Marine S.A.

www.targetmarine.gr

Chandris (Hellas) Ltd

Greece Tel: +30 210 429 0630

Grecomar Shipping Agencies Ltd

Greece Tel: +30 210 898 6160

Noble Chartering Limited

www.thisisnoble.com

Teo Shipping Corporation

Greece Tel: +30 210 428 3320

China Classification Society

www.ccs.org.cn

China Shipping (Group) Company

www.cnshipping.com

Greek Shipping Co-operation Committee

UK Tel: +44 (0) 20 7626 4545

North of England P & I Association Ltd

www.nepia.com

Thomas Miller Ltd

www.ukpandi.com

NYK Line
www.nyk.com

Torm A/S
www.tormdk.com

H. Clarkson & Co Ltd

www.clarksons.co.uk

Hong Kong Ming Wah Shipping Co Ltd

www.hkmw.com.hk

Olympic Shipping and Management S. A.

Greece Tel: +30 210 949 8111

Tsakos Shipping & Trading SA

www.tsakos.net

Clifford Chance
www.cliffordchance.com

Hydrographic Office
www.hydro.gov.uk

Osterreichischer LLoyd
www.oelsm.com

United Bulk Management

Genoa Tel: +39 010 291 241

Coeclerici Armatori SpA

www.coeclerici.com

IMC Shipping Co Pte Ltd

www.imcshipping.com

Pacific Carriers Limited

www.pclsg.com

V Ships UK Ltd
www.vships.com

Coeclerici Ceres Bulk Carriers NV

Monaco Tel: +37 793 100 400

IMIF (International Maritime Industries Forum)

UK Tel: +44 (0) 20 7929 6430

Plutofylax Shipping Corporation

Greece Tel: +30 210 429 0023

VOC Shipholdings BV
www.vocshipping.com

Cosco (HK) Shipping Co Limited

www.coscochs.com.hk

Imperium Shipmanagement S.A

www.imperium.gr

Premuda Bulk Ltd

www.premuda.net

Victoria Steamship Co Ltd

www.victoria-ss.com

Cosco Bulk Carrier Co. Ltd (Cosbulk)

www.cosbulk.com

Institute of Chartered Shipbrokers

www.ics.org.uk

Rethythmnis and Kulukundis Ltd

UK/Greece Tel: +44 (0) 20 7936 9012

Wallem Shipmanagement Ltd

www.wallem.com

Perivan Financial Print 201921