Peter M. Swift, Propeller Club, London, 22 January 2001

For better or for worse – tanker owning today

International Association of Independent Tanker Owners INTERTANKO today 243 Members243 Members 2,046 tankers2,046 tankers 158 million dwt158 million dwt 45 countries45 countries 293 Associate Members293 Associate Members OsloLondonSingaporeWashington

INTERTANKO International Association of Independent Tanker Owners Safe Transport Cleaner Seas Free Competition advocating

AS AN INDUSTRY WE MAY NOT BE LOVED BUT WE ARE NEEDED World Oil Consumption 3,590 mil ts World Oil Consumption 3,590 mil ts Transported by sea 2, 015 mil ts Transported by sea 2, 015 mil ts 57% transported by sea. 57% transported by sea.

Tanker Industry: Reality Tankers Incidents Miscellanous Fire, explosion Contact Wrecked/stranded Collision Hull, machinery Source: LMIS

Tanker Industry: Reality Tanker Accidental Oil Spills and Trade Others Loading&Discharging Fire&Explosions Hull Grounding Collision Tonne-Miles Number Billion Tonne miles Source: ITOPF

Nominal Arabian Light Deflated Arabian Light Nominal freight rates Deflated freight rates Source: INTERTANKO, IEA Tanker Industry: Reality

Source: INTERTANKO

THE CHANGING COMPOSITION OF THE TANKER FLEET Phase out – Accelerated Move to Double Hulls

The image

OWNER CHARTERER CLASS IMAGE PROBLEM ! The Rogues of the Tanker Industry

SHIPBROKER BUT EVEN WORSE IMAGE !

The world expects us to have 0 accidents % safe transportation means that out of tanker liftings 3 will have some problems. That will not be accepted! It takes one accident to change the industry

Tanker industry : Responsibility Chain SHIPOWNER SHIPYARDS INSURERS PILOTS CARGO OWNER CHARTERER PORT AUTHORITIES & TERMINALS CLASS SOCIETIES FLAG STATES

WEAKEST LINK: Consequences of Failure Credibility with stakeholders damaged Political Intervention/Regulations instead of Self Correction Weaknesses in system exposed

F OR BETTER OF F OR W ORSE V ICIOUS C IRCLE CRACKDOWN ON WEAKNESSES ADDITIONAL COSTS & OFFHIRE TIME EROSION OF FRAGILE PROFITABILITY PRESSURE ON COSTS & STANDARDS ?

F OR BETTER OR F OR W ORSE C HALLENGES T ODAY

F OR BETTER OR F OR W ORSE S OLUTIONS - T ODAY ENACTMENT & ENFORCEMENT OF EXISTING LEGISLATION (UNIFORMITY & HARMONISATION ON GLOBALS BASIS) INCREASED TRANSPARENCY GREATER DIALOGUE AMONG PARTNERS MORE RESPECT FOR MARITIME PROFESSIONALISM BETTER UNDERSTANDING & ASSESMENT OF RISKS IMPROVED FEEDBACK & LEARNING MECHANISMS EFFECTIVE ACCIDENT INVESTIGATION MORE TRUST!