INTERTANKO North American Panel RDML Paul Thomas Assistant Commandant for Prevention Policy March 2016

U.S. Port State Control Historical Trends * Distinct Arrivals (Unique Vessel Arrivals) 9,0119,2819,2278,938 3-Year Average Detention Ratio 1.30%1.11%1.31%1.68% PSC Detentions PSC Examinations9,4699,3899,2329,270 ISPS Major Control Actions ISPS Examinations8,6278,5718,5628,656 3-Year Average Major Control Action Ratio 0.14% 0.10%0.11% * Please note that the 2015 data is currently under review and may be changed prior to promulgation of the USCG Port State Control Annual Report.

2015 Detainable Deficiencies

2015 Safety Detentions By Ship Type

MARPOL Criminal Referrals

Targeted Flag Administrations – Safety (Preliminary Results) 7 Point Targeted List2 Point Targeted List BELIZEANTIGUA AND BARBUDA BOLIVIACYPRUS HONDURASGREECE* SAINT VINCENT AND THE GRENADINESMALTA SAMOAPANAMA TAIWANTURKEY TANZANIA*VANUATU THAILAND* Targeted Flag Administrations – Security (Preliminary Results) 7 Point Targeted List2 Point Targeted List NONE

Port State Control Appeals Merit or Association based appeals No repercussions to appeal Over last three years: -Approximately 50 % granted where the RO appeals their association to the detention -Approximately 30% granted where the flag state appeals the overall merit of the detention Detentions reported immediately to IMO; corrected if appeal granted Most appeals from Ship Management, Charterers, & RO’s who don’t want to be associated with a detention due to targeting criteria.

Rewarding the Best QUALSHIP 21 (Q21) – Rewards Highest Performing vessels flagged by an eligible Flag Administration – Subject to fewer CG inspections – Internationally recognized program sought out by owners, operators, charterers – Difficult criteria must be met through vessel performance, flag performance, etc – 1,444 vessels enrolled as of March 1, 2016 – The Flag detention ratio qualification threshold is 1.0% Flag States that are preliminarily eligible for QUALSHIP 21 BelgiumCayman IslandsItalyPhilippines BermudaDenmarkJapanRepublic of Korea British Virgin IslandsGibraltarMarshal IslandsSwitzerland CanadaHong KongMexicoUnited Kingdom (Preliminary Results)

ECA Compliance Verification Coast Guard verifies compliance with Annex VI Fuel Oil Non-Availability Reports (FONARs) & Notice of Protest (NoP) CG and EPA signed an updated MOU for Enforcement protocols on March 4, 2015 EPA uses its discretion to determine appropriate enforcement – Appropriate action could be “not taking any action”

Fuel Oil Sampling Program The Coast Guard in cooperation with the EPA has started a voluntary fuel sampling program. This program will help both agencies determine if there are gaps in compliance due to incorrect use of fuel or contamination. The program began the first week of March 2016 in the ports of Baltimore and Los Angeles/Long Beach. It is voluntary in nature. Each port will take two samples per vessel. The samples are to be taken by the engineering crews during regularly scheduled Port State Control exams. Eight vessels were sampled the first week – Results for three vessels came back compliant (0.066% was the highest) – Results still pending lab analysis for the remaining five vessels

Ballast Water Management Coast Guard continues work with all stakeholders to implement 2012 Ballast Water regulations. IMO BW Convention and U.S. discharge standards are the same. U.S. testing protocol is more robust & detailed. Convention ratification will not change U.S. standards. Coast Guard has issued over 5,000 extensions using simplified guidance. MSC decision on alternative method is under appeal. Coast Guard is aware of 16 systems testing at CG Independent Labs.

IMO MSC 96: Cyber Cyber is an operational risk management issue. The US, Canada (others) co-sponsored 3 papers to FAL 40 and MSC 96. The widely-recognized NIST Framework was utilized as a basis for the proposed guidelines. Maritime cyber risk management should be considered holistically and implemented through a joint MSC-FAL circular. Will recommend an intersessional correspondence group and report to MSC 97.

2016 Outlook / Look Ahead Environmental Regulation and Compliance Energy Production and Transportation Cyber Risk Management Future of Navigation Tragic Sinking of EL FARO

Thank you! Questions?