Senior Maritime Forum

Leadership in the Tanker Industry

Shanghai, 28 November 2007

Peter M. Swift

INTERTANKO
MISSION
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.
THE POSEIDON CHALLENGE COMMITTMENT
- to continuous improvement
- to working with all partners
- striving to achieve the goals of:
Zero fatalities, Zero pollution, Zero detentions

Importance of oil tanker transportation recognised

- delivering energy for the world

World Oil Consumption

3.8 billion ts
Transported by sea
2.4 billion ts
> 60% transported by
sea

Tanker Industry is accustomed to being

under the spotlight
Watched by:
Regulators
Politicians
Public
Licences to trade rigorously
applied by:
Flag states
Classification Societies
Insurers
Charterers
Monitored by:
Coastal and Port states

Tanker Industry Today

Leadership in Tanker Shipping
Pro-active, with constructive programmes
Engaged fully with other stakeholders
Respected as a responsible industry
Committed to:
- self regulation based on industry best practices,
- support effective, fit for purpose, legislation
- continuous improvement

Key challenges for shipping industry

- are not unique to Tanker sector
Maintaining an international
framework of consistent, high
standards
Delivering best environmental
performance
Ensuring availability of good people
and quality ships

Upholding International Regulation

and customary international law
Supporting IMO with active
participation
Encouraging ratification of
IMO (and ILO) Conventions
Engaged in processes in
US (Washington), Europe
(Brussels) and elsewhere
Prepared to challenge
conflicts and contradictions
through the courts

Ratification by States is IMPORTANT for a

better industry
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)
Convention on Limitation of Liability for Maritime Claims (LLMC), 1976
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):
C180 Seafarers' Hours of Work and the Manning of Ships Convention,
1996
Maritime Labour Convention 2006

Consistency in International Standards

- actions by Tanker industry
Full support for IMO Member State Audit
scheme plus transparency in findings
Championed the development of Common
Structural Rules for Tankers
Established with others a regular Tripartite
dialogue between international shipbuilders,
classification societies and ship
Led the campaign for greater harmonisation
and uniformity in procedures across Port
State Control regimes

Action on key environmental challenges

Established international Forum to address
inadequacies of reception facilities
Developed interim policy on Responsible Recycling
ahead of proposed Convention
Implemented Antifouling Convention ahead of formal
entry into force
Trialled procedures to develop solutions to meet new
Ballast Water Management requirements; also now
addressing biofouling issues
Developed procedures to limit Volatile Organic
Compound (VOC) emissions from cargo tanks
Produced guidelines on minimisation of ship
generated waste
Proposed solutions to reduce globally harmful exhaust
gas emissions (atmospheric pollution) for existing
and new ships
Actively engaged in developing measures to reduce
Green House Gas emissions (principally CO2) from
todays and tomorrows ships

Action on safety issues

Established joint user group with governments

and pilots, to encourage taking a pilot in
international straits as per IMO recommendations

Supported the development of a Marine

Electronic Highway

Established a lifeboat user group with

manufacturers to seek remedies for
shortcomings with lifeboats and lifeboat safety

Campaigning to ensure that better safety-related

information on the characteristics of dangerous
cargoes is made available to ships crews

Championed Early Warning (information

exchange) Systems with classification societies

Developed guidelines on tanker maintenance,

including means of access and repair procedures

Implemented Terminal Vetting database

Investment in new tankers

More than USD 500 billion invested since
2000 with the result that >85% of tanker
fleet double hulled in 2010
100
80

94

End 10

End 09

End 08

End 07

End 06

End 05

End 04

6
1991

79 82 85 Assumes
76
67 68 73
phase out
59
51
according to
regulations
22
(rounded
upwards), max 25
y.o./2015 after 2010
.
End 03

20

DH

End 02

40

% dwt share
SH/DB/DS

78

1997

60

49

41

18 15
21
24
33 32 27

Investment in people

Respected as an asset, not

treated as a cost !

Action on Human Element issues

- welfare and well-being
Speaking out against unjustified criminalisation, and
challenging bad laws through the courts
Supporting IMO-ILO guidelines on Fair Treatment of
Seafarers (in event of Maritime Accident)
Campaigning for improved conditions for shore access
when security constraints active
Working to reduce multiple and overlapping inspections
Promoting solutions to lessen technical and operational
burden of equipment, systems and associated paperwork
Prepared guidelines for safe handling of cargoes and
fuels, tank cleaning and entry
Developed guidelines on implementing ILO Convention
on work and rest hours
Promoting higher standards of accommodation as
industry norms

Action on Human Element issues

- recruitment, training and retention
Policies for cadet berths and training facilities on ALL
new ships
Programmes for maximum utilisation of cadet berths
on existing ships
Developing industry standards for Tanker Officer
Training, covering proficiency and experience
Running seminars and workshops worldwide for
officers and seafarers on Tanker industry issues
Raising awareness of the industry, targeting young
people as well as media, politicians, regulators and
the public (www.maritimefoundation.com)

Tanker industry - a record of continuous

improvement
Leading by example !

3.5

130

2.8

104

2.1

78

1000 ts spilt

1.4

52

'0000 bn
tonne-miles

0.7

26

0.0

0
1970s

1980s

1990s

Accidental oil pollution from tankers down from 2.9 m tonnes in the 1970s to less than
190,000 tonnes this decade so far

PR00s

Tankers today more efficient than ever

before - one litre of fuel on a modern VLCC
(Very Large Crude Carrier) moving one
tonne of cargo more than 2,500 kilometres
- more than twice as far as 20 years ago
Transportation costs still a very small
fraction of the delivered cost of oil
Reliability of supply at record highs
And many new initiatives for safer, cleaner
and more efficient ships.

But NOT COMPLACENT !

Learning from incidents,

improving feedback and information exchanges

New initiatives underway

to improve:
Gathering of information on
incidents, including
confidential reporting and
appropriate feedback loops
Root-cause analyses and
accident investigations
Share information (greater
openness and transparency)
Learn lessons (to prevent
accidents and re-occurrences)

Poseidon Challenge
- encourages all parties to commit to:
- continuous improvement
- working with all partners

The International Tanker industry is fully

committed to the goals of the IMO
Shipping should be:

Safe and secure

Environmentally responsible
Reliable
Efficient (Low cost)

Tanker Industry today

is proud of its people and proud of its ships
and
will continue to provide the world with safe,
environmentally sound and efficient seaborne
transportation of oil, gas and chemical products

Thank you

For more information, please visit:

www.intertanko.com
www.poseidonchallenge.com
www.shippingfacts.com
www.maritimefoundation.com