Members SEMINAR

April 8, 2011

INTERTANKO Overview

ReportJoseph Angelo

Managing Director

MEMBERSHIP

BUDGET

SECRETARIAT

EXCOM ISSUES

COUNCIL ISSUES

Membership

250+ Members

3,350+ Tankers

> 285 000 000 DWT

Members in 40+ countries

>75>75%% of the Independent Tanker Fleet of the Independent Tanker Fleet

290+ Associate Members

0

56

112

168

224

28019

97

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

0

680

1,360

2,040

2,720

3,400

No. members

m dwt

No. ships

MembershipMembershipM

em

bers

/mill

ion

dw

t No

. of ta

nke

rs

Budget & AccountsBudget & Accounts

All figures US $ 2009 2010 2011

(Actual) (Actual) (Budget)

Total Operating Income 9,056,359 7 381 600 7,572,650

Total Operating Expenses 6,566,390 7 062 856 7,217,450

Operating Result 2,489,968 318 744 355,200

Non-operating Income/expenses 551,773 -21,179 -25,000

Result for Year3,041,741 297 565 330,200

BudgetBudget

• Large operating surplus for 2009

- Virtual retention of all members in 2009

- Control of discretionary expenditure

& limitation of activities

- Expenditure benefiting from strong US$ against British pound and Norwegian Kroner

• 2010 membership fees reduced by 10%

• No change in 2011 membership fees

SecretariatSecretariat

23 STAFF MEMBERS IN 5 OFFICES

Oslo (9), London (12), Singapore (1)

USA (1), Brussels, (Manila)

STAFF INCLUDES

- Managing Director (New)

- Deputy Managing Director (New)

- Technical & Marine Directors

- Specialists for Regulatory Affairs & Legal Issues, Chemical, Oil and Gas shipping,

Environmental Issues,

Executive Committee Issues

High level discussions with OCIMF

Minimum safe operating costs

Piracy

Greenhouse gas emissions

2011 Workplan priorities

Discussions with OCIMFDiscussions with OCIMF

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

Issues

• Achievable greenhouse gas emission reduction targets for tankers

• Piracy

• Tanker officer competency and experience

• Vetting matters

• Mercury in crude oil, safety aspects

• Guidance on generally accepted procedures for accident investigation/analysis/reporting

Safe Operating CostsSafe Operating Costs

Concern: current rates are below the minimum cost levels required to operate vessels safely

Issues• Costs to operate a ship and Worldscale versus

equivalent charter rates• Quality is important to both owners and

charterers• Anti-trust concerns• Could be counterproductive (perception of

lowering the “quality bar”?)• Reluctance to share costs

PiracyPiracy

• SOS Media campaign

• Best Management Practice (BMP) compliance

• Policy on armed guards

• Marine Naval Liaison Officer (MNLO) supply

Greenhouse GasGreenhouse Gas

• Continue to support mandatory Energy Efficiency Design Index for new ships

• Seek further information and clarification of Market Based Measures (MBM)

• Finalize development of industry assessment of potential CO2 reduction measures

• Launch “Virtual Arrival” project with OCIMF

Workplan PrioritiesWorkplan Priorities

• Council approved workplan priorities

• Executive Committee to overview detailed implementation of workplan

• Secretariat developed detailed plans for high priority topics (25)

• Workplan is a “living document”

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

Council MeetingCouncil Meeting

• Astir Palace hotel, Athens, Greece

• May 9 – Council dinner

• May 10 – Council meeting

• May 11 – Tanker Seminar- Opening Session- Tanker market- Piracy- Technical session

Ballast water managementGreenhouse gas emissions

THANKYOU

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