Latin American Panel November 1, 2011

INTERTANKO OVERVIEW

REPORTJOSEPH ANGELO

MANAGING DIRECTOR

MEMBERSHIP

BUDGET

SECRETARIAT

WORKPLAN

CURRENT MAJOR ISSUES

TANKER INCIDENTS

WEB SITE INFORMATION

ANNUAL TANKER EVENT

MEMBERSHIP

• 250+ Members

• 3,400+ Tankers

• 270+ Million DWT• Members in 40+ countries

• MORE THAN 75% OF THE INDEPENDENT TANKER FLEET

• 330+ Associate Members

Graphs-Power-Membership.pptx

MEMBERSHIP

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

0

57

114

171

228

285

0

680

1,360

2,040

2,720

3,400

No. members

m dwt

No. ships

Million dwt / number of members Number of ships

Average age membership fleet

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

8

9

10

11

12

13

14

15

16

BUDGET

2010 2011 2011 (Actual) (Budget) (Draft

Budget)

Total Operating Income (US$) 7,381,600 7,572,650 7,288,449

Total Operating Expenses (US$) 7,062,856 7,217,450 7,396,323

Operating Result 318,744 355,200 - 107,874

Non-operating Income/expenses -21,179 -25,000 -25,000

Result for Year 297,565 330,200 -132,874

BUDGET

• Large operating surplus for 2009 year end

- Virtual retention of all members in 2009

- Disciplined control of discretionary expenditures (limiting of activities)

- Expenditures benefiting from strong US dollar against British pound and Norwegian Kroner

• 2010 membership fees reduced by 10%

• No change in 2011 membership fees

• 2012 membership fees reduced by 5%

SECRETARIAT

• 20 STAFF MEMBERS IN 4+ OFFICES

Oslo (8), London (10), Singapore (1)

USA (1) + Brussels, Manila (consultant)

• STAFF INCLUDES

- Managing Director

- Deputy Managing Director

- Technical Director

- Director, Regulatory Affairs

- Marine Director

- General Counsel

WORKPLAN PRIORITIES

• Council approved workplan priorities

• Executive Committee to overview detailed implementation of workplan

• Secretariat developed detailed workplans for high priority workplan items (25)

• Workplan is a “living document”

• New workplan items to be submitted to Council for approval and appropriate priority

CORE PURPOSES

• SAFETY/TECHNICAL

• SEAFARERS

• ENVIRONMENT

• MARINE OPERATIONS

• REGULATORY/LEGAL

• TANKER INFORMATION

EXCOM/COUNCIL ISSUES

Budget (5% cut in fees)

High level discussions with OCIMF*

Piracy

Greenhouse gas emissions*

Workplan priorities

Sustainability*

DISCUSSIONS WITH OCIMF

High Level discussions (Chairmen) – “Best the relationship has ever been”

Issues• Greenhouse gas emissions• Piracy – Armed guards• Tanker officer competency and experience• Vetting matters• Mercury in crude oil, safety aspects• Sustainability of the Tanker industry

GREENHOUSE GAS

• Policy of implementation of IMO Energy Efficiency Design Index (EEDI) requirements

- 4 year waiver

- method of compliance

• Policy on Market Based Measures (MBM)

• Better acceptance of “Virtual Arrival” project with charterers

SUSTAINABILITY

• Deep concern that the current tanker market rates are consistently below ship owners’ operating costs.

• INTERTANKO’s Chairman, Capt Graham Westgarth

“If these rate levels continue for a long period, this could lead to a situation where sustainability of the oil transportation industry is threatened.”

“Our Members operate tankers to the highest standards and will continue to do so. Operating for a prolonged period in an environment where tanker owners are not even covering their operating costs is obviously not a situation that can be maintained.”

SUSTAINABILITY

• Dialogue with OCIMF on Charter Party speed clauses with the aim of providing environmental benefit

• Discussions with Round Table shipping associations (BIMCO, ICS and INTERCARGO) and other stakeholders on ways to ensure there is no erosion of safety and quality standards

Tanker Incidents and accidental pollutionIncludes all tankers types and sizes

Number incidents

Source: INTERTANKO, based on data from

LMIU, ITOPF + others

‘000 tonnes pollution

79

81

83

85

87

89

91

93

95

97

99

01

03

05

07

09

11

0

210

420

630

840

1050

0

120

240

360

480

600

Miscellaneous

Fire/Expl

Hull & Machinery

Grounded

Coll/Contact

Oil pollution

2011 is a projection based on 255 days

Tanker Incidents and accidental pollutionIncludes all tankers types and sizes 1978 - 2011

%

Source: INTERTANKO, based on data from

LMIU

78

80

82

84

86

88

90

92

94

96

98

00

02

04

06

08

10

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Misc/Unknown

Fire/Explosion

Collision/Contact/Ground-ing

Hull & Machinery

WEB SITE INFORMATION

Databases

• Terminal vetting

• Port information (port costs, reception facilities)

• Vetting inspection feedback

• PSC inspection feedback

• Confidential Accident Reporting (CARP)

WEB SITE INFORMATION

Benchmarking (comparison with INTERTANKO fleet)

• Vessel inspection questionnaire (VIQ)

• TMSA 2

• Crew/officer retention

• Lost time indictor

ANNUAL TANKER EVENT

• Venue – Singapore

• May 9 – Council dinner

• May 10 – Council meeting

• May 11 – Tanker Seminar

- Tanker market

- Piracy

- Technical session

MUCHASGRACIAS!!

WWW.INTERTANKO.COM