European Commissions’ Proposals on the Safety of the Seaborne Oil Trade (Euro OPA) - implications/issues SSY Monte Carlo Tanker Event, 2000

SSY Monte Carlo Tanker Event, 2000

Response to ‘Erika’ SSY Monte Carlo Tanker Event, 2000

European Concerns Post ‘Erika’ SSY “Public opinion is no longer prepared to tolerate such accidents” That vessels considered unsuitable for the US will switch to European trading (post OPA) “Manifestly sub-standard vessels should be banned” Single hull ships should be banned Monte Carlo Tanker Event, 2000

EC Age Concerns Post ‘Erika’ SSY “Some ships pose a manifest risk to maritime safety because of their age, flag and history” “The Erika disaster demonstrates the risk presented by old ships” “There is a general correlation between age and accidents to ships” Monte Carlo Tanker Event, 2000

Tanker Total Losses Jan March 1999 SSY 77 vessels Source: European Commission Monte Carlo Tanker Event, 2000

Voyage Market Handysizes Average Age by Main Discharge Area SSY Monte Carlo Tanker Event, 2000

Voyage Market Handymaxes Average Age by Main Discharge Area SSY Monte Carlo Tanker Event, 2000

Voyage Market Panamaxes Average Age by Main Discharge Area SSY Monte Carlo Tanker Event, 2000

Voyage Market Aframaxes Average Age by Main Discharge Area SSY Monte Carlo Tanker Event, 2000

Voyage Market Suezmaxes Average Age by Main Discharge Area SSY Monte Carlo Tanker Event, 2000

Voyage Market VLCCs Average Age by Main Discharge Area SSY Monte Carlo Tanker Event, 2000

Proposed European Regulations Impact Upon Single Hull Vessels SSY Monte Carlo Tanker Event, 2000

Problem With Published Data - What is it showing? SSY Monte Carlo Tanker Event, 2000

Small Tankers Hull Configuration SSY Monte Carlo Tanker Event, 2000

Small Tanker Fleet - year of build hull configuration (no of ships) Average age = 19 years SSY Monte Carlo Tanker Event, 2000

Handy Tankers Hull Configuration SSY Monte Carlo Tanker Event, 2000

Handy Tanker Fleet dwt - year of build hull configuration (no of ships) Average age = 19 years SSY Monte Carlo Tanker Event, 2000

Handymax Tankers Hull Configuration SSY Monte Carlo Tanker Event, 2000

Handymax Tanker Fleet - year of build hull configuration (no of ships) Average age = 10 years SSY Monte Carlo Tanker Event, 2000

Panamax Tankers Hull Configuration SSY Monte Carlo Tanker Event, 2000

Panamax Tanker Fleet - year of build hull configuration (no of ships) Average age = 17 years SSY Monte Carlo Tanker Event, 2000

Aframax Tankers Hull Configuration SSY Monte Carlo Tanker Event, 2000

Aframax Tanker Fleet - year of build hull configuration (no of ships) Average age = 12 years SSY Monte Carlo Tanker Event, 2000

Suezmax Tankers Hull Configuration SSY Monte Carlo Tanker Event, 2000

Suezmax Tanker Fleet - year of build hull configuration (no of ships) Average age = 13 years SSY Monte Carlo Tanker Event, 2000

VLCC Tankers Hull Configuration SSY Monte Carlo Tanker Event, 2000

VLCC Tanker Fleet - year of build hull configuration (no of ships) Average age = 13 years SSY Monte Carlo Tanker Event, 2000

Proposed European Regulations Estimated Vessel Replacements (no. of ships) SSY Monte Carlo Tanker Event, 2000

Proposed European Regulations Estimated Vessel Replacements (% of fleet) SSY Monte Carlo Tanker Event, 2000

European Criticisms of Practice SSY “No significant difference between freight rates for young and old tankers” “Prices often dictated by cheapest oldest tonnage” “Difficult to make quality pay” “Low cost operators gaining market share at expense of long standing companies - entailing a risk for safety” Monte Carlo Tanker Event, 2000

European Criticisms of Practice SSY “Other players are implicated in the phenomenon of sub-standard shipping - in particular the cargo owners” “The fact that ships of appalling condition continue to to be employed for transportation of oil shows that charterers do not have sufficient disincentives to give up their intolerable practice of deliberately selecting low quality tonnage” “Shipowners of convenience only exist because there are charterers who care little about the quality of ships they charter” Monte Carlo Tanker Event, 2000

European Message to Oil Co.s SSY “...oil companies without waiting the adoption of the first package of directives should undertake by voluntary agreement to refrain in future from chartering tankers older than 15 years (unless appropriate inspections show them to be in a satisfactory condition)...” Monte Carlo Tanker Event, 2000

European Message to Class Soc.s SSY Proliferation of class societies with varying standards “Not all IACS members meet the requisite high standards” EC concerned that performance of class soc “does not always meet the standards required” Increase tendency for “class hopping” Monte Carlo Tanker Event, 2000

Other Key European Messages SSY Normal framework for international action on maritime safety under the IMO “falls short of what is needed to tackle the causes of such disasters effectively” Deplores widespread use of flags of convenience Criticism of ‘Atomisation’ of ownership and use of ‘brass plate’ companies Difficult to identify financial interests and decision makers responsible for operation of ships Monte Carlo Tanker Event, 2000

Likely Outcome SSY Oil Co.s will tighten up their chartering policies The demand for modern tonnage will be greater If the European proposals succeed other countries (e.g. Japan, Australia) may follow The increase requirement for new tankers may therefore be even higher New ships continuing to get premiums over old Owners finally being paid fairly for quality Monte Carlo Tanker Event, 2000