INTERTANKO A strong voice for the Tanker Industry Presented by John C. Fawcett-Ellis General Counsel & Regional Manager Asia-Pacific Hebei Ocean Shipping Co., Qinhuangdao, 26 May 2005

Anti-trust Compliance Statement INTERTANKO is firmly committed to maintaining a fair and competitive environment in the world tanker trade, and to adhering to all applicable laws which regulate INTERTANKO’s and its members’ activities in this market. These laws include the anti-trust and competition laws, which the US, the European Union and many nations of the world have adopted to preserve the free enterprise system, promote competition and protect the public from monopolistic and other restrictive trade practices. This meeting will be conducted in compliance with INTERTANKO’s anti-trust and competition law guidelines.

- representing responsible oil and chemical tanker owners worldwide - promoting Safer Ships, Cleaner Seas and Free Competition

-strict membership criteria based on quality and performance

The strength of INTERTANKO 230 members – operating some 2,200 tankers 230 members – operating some 2,200 tankers 280 associate members 280 associate members 26 staff lead by MD – Dr P Swift 26 staff lead by MD – Dr P Swift Oslo, London, S’pore and Washington DC Oslo, London, S’pore and Washington DC Chairman – Mr S Van Dyck Chairman – Mr S Van Dyck 14 committees 14 committees 4 regional panel 4 regional panel

INTERTANKO in Asia - Pacific Membership - Australia – Botany Bay Shipping Group - China – Hebei Ocean Shipping Co, Cosco Dalian, China Shipping, Nanjing Tanker Corporation, Sinochem Shipping & Sinotrans - Hong Kong – Anglo-Eastern, Associated Maritime, Eurasia, Fairmont, HK Ming Wah, Parakou, TCC, Unique, Wah Kwong & Wallem - Japan – Daiichi Chuo, Daitoh Trading, Iino Lines, Kawasaki Line, Kyoei Tanker, Meiji Shipping, Mitsui OSK, Tokyo Marine, NYK, Nissho, Shinwa, Taiheiyo, Yuyo, Sanko - Malaysia – MISC, Aurora, Barber Shipmanagement - Singapore – Titan, Petroships, PCL, Thome, TESMA, World Tankers, - South Korea – SK Shipping, Hanjin,

INTERTANKO IN ASIA Regional Office opened in Singapore in 1999 Regional Office opened in Singapore in 1999 Regional Panel since 1998 Regional Panel since 1998 Asian Regional Panel: Asian Regional Panel: - Mr JH Lee – SK Shipping, Chairman - Mr Joseph Kwok, American Eagle Tankers, Vice-Chairman - Mr K Yoshida, K Line, Vice-Chairman

INTERTANKO’s Objectives: Powerful voice for the tanker industry Powerful voice for the tanker industry Provide members with first class information and services Provide members with first class information and services

Membership services: Weekly news Weekly news Advice to members on Operational/Technical/Legal matters Advice to members on Operational/Technical/Legal matters Port & Terminal information Port & Terminal information Freight and Demurrage Information Pool Freight and Demurrage Information Pool Terminal Vetting Dbase Terminal Vetting Dbase Practical publications on technical issues Practical publications on technical issues

Activities in 2004/5 INTERTANKO meetings/receptions held in Asia: INTERTANKO meetings/receptions held in Asia: - HK/Shanghai – Feb - Singapore – May - Tokyo – June - Dalian – June - Singapore – November - Yokohama, ARP -Tokyo – November - Feb/March 05 – ARP - HK, Beijing, Shanghai Presented papers at conferences in Shanghai, Singapore, KL and Dalian Presented papers at conferences in Shanghai, Singapore, KL and Dalian

Issues in Asia Security in the Straits of Malacca Security in the Straits of Malacca Sharing the burden of navigational safety in the Straits of Malacca Sharing the burden of navigational safety in the Straits of Malacca Navigational safety on Chinese rivers Navigational safety on Chinese rivers Port State Control Port State Control

PIRACY Extent of the problem Extent of the problem Recent developments Recent developments The challenges The challenges

Malacca Straits attacks attacks killed, 3 injured, 36 kidnapped

Improved cooperation and joint patrols in Malacca Strait, July 2004 Pan-Asia anti-piracy initiative – Regional Cooperation Agreement or ReCAAP Malaysian Maritime Enforcement Agency – up to 40 vessels plus helicopters within 5 years. Current Developments

– –Inventus - Unmanned Aerial Vehicle (UAV) – –Reconnaissance system for aerial surveillance

The Challenges Political Political Resouces Resouces Cross boarder pursuits Cross boarder pursuits Tackling the root of the problem Tackling the root of the problem

INTERTANKO’s Legal/Chartering services: Model clauses Model clauses Intankbill 2003 Intankbill 2003 Chartering publications Chartering publications C/P advice service C/P advice service Freight and Demurrage Information Pool Freight and Demurrage Information Pool Freight and Demurrage Dbase Freight and Demurrage Dbase

Examples of INTERTANKO’s Clauses Bunker Emissions Clause Bunker Emissions Clause Agency Agency Demurrage Demurrage Pumping Pumping ROB ROB Turkish Straits Transit Turkish Straits Transit Danish Straits Transit Danish Straits Transit Quality Management Clause Quality Management Clause MSDS MSDS

Other key issues Common Structual Rules Common Structual Rules Port State Control Port State Control Ballast Water Management Ballast Water Management Ship recycling Ship recycling Class Class US regulatory issues US regulatory issues EU Maritime Safety package etc etc EU Maritime Safety package etc etc

Other services Ports / terminals Dbase Ports / terminals Dbase Marine / Environmental Marine / Environmental Technical Technical Market / Research Market / Research Weekly News Weekly News

The tanker industry today: 1. Vital to the global economy 2. Provides a flexible, cost efficient and environmental safe transportation system to meet the world’s energy needs 3. Invested billions of USD in renewing its fleet 4. Despite an increase in tonne miles accidents and spills have decreased

AS AN INDUSTRY WE MAY NOT BE LOVED BUT WE ARE NEEDED World Oil Consumption 3.6 billion ts World Oil Consumption 3.6 billion ts Transported by sea 2.2 billion ts Transported by sea 2.2 billion ts 60% transported by sea. 60% transported by sea.

Oil pollution into the sea Maritime sources

The world expects us to have 0 accidents. Even though % of oil is delivered safely It takes only one accident to change the industry

Tanker incidents: Source: LMIS, Informa, press, INTERTANKO Number

Accidental oil pollution from tankers and tanker trade Source: ITOPF, Fearnleys 1000 bn tm m ts spilt

“Oil should travel first class” - that is the aim of the oil shipping industry

Vision for the tanker industry: “ A responsible, sustainable and respected industry able to influence its own destiny.”

THANK YOU THANK YOU 谢谢大家