NORTH AMERICAN PANEL OCTOBER 14, 2008 INTERTANKO OVERVIEW REPORT JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

MEMBERSHIPBUDGETSECRETARIATLAWSUITSPILOTSPIRACY HUMAN ELEMENT

MEMBERSHIP 270+ MEMBERS 2,800+ TANKERS 230+ MILLION DWT MORE THAN 80% OF THE INDEPENDENT TANKER FLEETMORE THAN 80% OF THE INDEPENDENT TANKER FLEET 350+ ASSOCIATE MEMBERS

MEMBERSHIP No. members/million dwt No. tankers

BUDGET (BUDGET) Total Operating Income (US$)7,113,105 8,068,590 8,854,551 Total Operating Expenses (US$)6,811,3177,546,8478,557,424 Operating Result 301, , ,127 Result for the Year 438, , ,127

SECRETARIAT 24 STAFF MEMBERS IN FOUR OFFICES:24 STAFF MEMBERS IN FOUR OFFICES: 12 – Oslo 10 – London 1 – Singapore 1 – USA STAFF INCLUDESSTAFF INCLUDES - Managing Director - General Counsel - Technical Director - Director, Regulatory Affairs - Marine and Chemical Director

LAWSUITS MASSACHUSETTS LAWSUITMASSACHUSETTS LAWSUIT BALLAST WATER LAWSUITBALLAST WATER LAWSUIT EUROPEAN SHIP SOURCE POLLUTION DIRECTIVEEUROPEAN SHIP SOURCE POLLUTION DIRECTIVE

MASS LAWSUIT INTERTANKO CONCERNS DISTRICT COURT DECISION UPHOLDS COAST GUARD AUTHORITY OVER VESSEL OPERATIONS IN US WATERS REINFORCES UNANIMOUS US SUPREME COURT DECISION IN 2000 WHEN INTERTANKO TOOK STATE OF WASHINGTON TO COURT

MASS LAWSUIT DEVELOPMENTS IN SEPTEMBER, DISTRICT COURT JUDGE GRANTS DEPARTMENT OF JUSTICE MOTION FOR PRELIMINARY INJUNCTION ENJOINING MASSACHUSETTS FROM ENFORCING ITS MANNING AND TUG ESCORT REQUIREMENTS AWAITING JUDGE’S DECISION ON OTHER MOTIONS SUBMITTED TO DISMISS STATE REGULATIONS

BALLAST WATER LAWSUIT INTERTANKO CONCERNS FEDERAL COURT ORDERS EPA TO DEVELOP REGS FOR ALL SHIP DISCHARGES, INCLUDING BALLAST WATER, UNDER NPDES PERMIT JUDGE ACKNOWLEDGES THAT USCG HAS AUTHORITY UNDER CERTAIN LAWS, BUT BELIEVES CONGRESS ALSO GAVE AUTHORITY TO EPA UNDER THE CLEAN WATER ACT

BALLAST WATER LAWSUIT DEVELOPMENTS APPELLATE COURT SUPPORTS DISTRICT COURT DECISION ORDERING EPA TO ISSUE VESSEL DISCHARGE REGULATIONS UNDER NPDES PROGRAM BY SEPTEMBER 30 DISTRICT COURT GRANTS EPA EXTENSION UNTIL DECEMBER 19 EPA ISSUES PROPOSED VESSEL GENERAL PERMIT REQUIREMENTS, FINAL REQUIREMENTS TO BE ISSUED IN EARLY DECEMBER

EU DIRECTIVE INTERTANKO CONCERNS EU “SHIP SOURCE POLLUTION” DIRECTIVE (2005/35/EC) HAS TWO MAJOR PROBLEMS: - CONTRADICTS MEMBER STATES’ TREATY OBLIGATIONS - LIABILITY TEST FOR “SERIOUS NEGLIGENCE” LACKS LEGAL CERTAINTY IN EFFECT, IT CRIMINALIZES ACCIDENTAL POLLUTION

EU DIRECTIVE DEVELOPMENTS IN JUNE EUROPEAN COURT OF JUSTICE ISSUES DECISION: - DIRECTIVE CANNOT BE ASSESSED BY REFERENCE TO MARPOL OR UNCLOS - “SERIOUS NEGLIGENCE” DOES NOT INFRINGE UPON EU LEGISLATION DECISION MEANS: - EU DIRECTIVE REMAINS VALID - LEAVES OPEN THE DOOR FOR OTHER LEGAL FORA TO INTERPRET THE DIRECTIVE (UK COURT, INTERNATIONAL TRIBUNAL FOR THE LAW OF THE SEA)

PILOTS JAN 2008, INTERTANKO meets with President and Secretary General of the International Maritime Pilots Association (IMPA) Form a Discussion Group between the two organizations to identify areas of mutual interest that could lead to cooperative efforts to improve maritime safety

PILOTS Discussion Group focused on – Bridge resource management Pilot and Master/bridge crew interaction IMO Resolution A.960 (Recommendations for training and certification and on operational procedures for maritime pilots) Safe boarding arrangements for pilots E-Navigation

PILOTS Discussion Group – Agreed that the initial meeting was successful Identified areas where there were grounds for further discussion Agreed to meet again later this year to continue the discussions

PIRACY Wall Street Journal 2008 “Pirates have stepped up attacks on merchant vessels in the Gulf of Aden, increasing insurance costs for ship owners and raising the spectre of military intervention in one of the world's most important sea lanes”. “The surge in piracy has suddenly turned it into one of the most dangerous passages in the world”

PIRACY Initially in the Gulf of Aden, but has expanded up to 230 miles east of Somalia Pirates armed with automatic weapons and rocket propelled grenades Main intent is to capture ship and demand large sums of money for their victims More than 62 attacks so far this year 13 vessels and more than 200 crew members being held captive

PIRACY JUNE 2, 2008 – UN SECURITY COUNCIL ADOPTS RESOLUTION 1816 Urges states with naval vessels and military aircraft in the area to be vigilant to acts of piracy Render assistance to vessels threatened or under attack by pirates Authorizes entry into territorial waters of Somalia to repress acts of piracy Authorizes use of all necessary means to repress acts of piracy

PIRACY (Combined Task Force Gulf of Aden)

PIRACY OPTIONS DISCUSSED BY EXCOM 1) Firearms policy – should INTERTANKO continue to discourage the use of firearms and armed guards on board? 2) Should more emphasis be given on the banning of ships and seafarers from piracy hot spot areas? 3)Address the dissatisfaction with Coalition response times and at times, the lack of response. 4)Work with Roundtable members to actively pursue appropriate action.

PIRACY ACTIONS TAKEN Roundtable Joint letter (INTERTANKO, BIMCO, ICS, INTERCARGO and ITF) sent to IMO Secretary General: - Requests the matter be brought to the attention of the UN Security Council - Calls for tougher action to reinforce UN Security Council Resolution 1816 to provide sufficient military resources to eliminate problem INTERTANKO Chairman sends urgent message to all members encouraging them to bring the matter to the attention of national governments to encourage CTF 150 to protect shipping from attacks Roundtable forms piracy task force to consider further appropriate industry actions

PIRACY LATEST DEVELOPMENTS Leadership of CTF 150 changes - more aggressive approach, but … Taking of FAINA by pirates attracts worldwide attention to the issue UN Security Council adopts new resolution 1838 seeking deployment of assets to engage pirates IMO SecGen seeking renewal and extension of UNSCR 1816 of adequate duration, deployment of adequate resources, clear “rules of engagement” RT urges members to ensure that ships are reminded of basic passive self-defense measures (MSC Circ.623)

PIRACY OTHER (POSSIBLE) DEVELOPMENTS Russia sending naval assets to the region EU to deploy naval forces to the area Convoys for transit through the region with military escorts Employing Private Military Companies “Mercenaries” Urging governments to explore legal remedies for successful prosecution

PROGNOSIS?? Piracy off the coast of Somalia will not change in the near future unless effective action is taken Increase in naval assets in the area is best short term solution International political will is slowly changing to address the problem Ultimate solution requires change in situation within Somalia

HUMAN ELEMENT Training - Establishing TOTS Industry Standard - Training institution standards/Teacher training standards Officer Attraction - Young Seafarer Focus Group (ITF /Others) - Cadet Berth Policy :2 per ship Officer Retention - Image of the Industry:- IIRT - Officer Retention Benchmarking Database (Vetting Committee)

HUMAN ELEMENT Major Revision of STCW - Ongoing work to 2010, Working Group Accommodation Standards - ABS Habitability Guide: Endorsement/Promotion Inter-Industry Group Fair Treatment - Habitability - Shore leave - Unfair treatment - Officer/crew Detention/Abandonment

THANKYOU!!