Council meeting in London September 2003. A few reflections on the future… Lars Carlsson, Chairman of Intertanko.

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Presentation transcript:

Council meeting in London September 2003

A few reflections on the future… Lars Carlsson, Chairman of Intertanko

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

Tanker Safety – a Success Story Tanker Incidents Miscellanous Fire, explosion Contact Wrecked/stranded Collision Hull, machinery Source: LMIS

Age Profile of Tanker Fleet

Double-Hull Transition Smooth Through 2009

VLCC Spot Earnings, AG/East

Zero Tolerance for pollution and accidents The world community

Preference for quality and performance! How about payment?

Marketing of superior ships If you build, manage and maintain a superior ship operation – how do you get paid for the extra investment?

Marketing Quality Ships What are the targets for Oil Co. departments? Chartering dept- lowest freight costs Vetting dept- Basic safety PR dept- Nice values Oil trading- Lowest CIF price Top management- Long term growth - Shareholder value - Image of Oil Co. - Bonus - social status

Potential ADDITIONAL earnings from: Basic earning capacity16.000/d Oil Co. Departments: Chartering/Trading (cargo) 5.000/d Vetting 0 PR 0 Top management 3.000/d Potential earnings/day24.000/d Additional earnings/yearMUSD 12 Earnings improvement50%!!!

Is 50% higher earnings per year worth fighting for??? YES!!!!!!

Efficient marketing towards: Chartering Dept Trading Dept PR Dept Vetting Dept But don’t forget the top boys in the oil companies for they have the most to loose in accidents!!!

March Collision Baltic Carrier & Tern ”New ship – No guarantee”

Addressing the value of safety What accidents occur? What are the most common categories and causes? What can be done to control risk? How effective are the measures? What can be attributed to twin skeg? What is the cost of accidents? What is the potential benefit?

Selection and training of competent crews

Crews who can handle tough days!!!

Tanker casualties … Total 3,360 incidents 49% 13% 10% 25% Source: LMIS Database

… and how these could be prevented or mitigated Integrated bridge control system Improved manoeuvrability Bridge Resource Management training High coating standard Preventive maintenance Redundant and separate critical systems Effective Fire extinguishing systems Redundant and separate propulsion and steering systems Total 3,360 incidents Source: LMIS Database

”Oil should always travel First Class…” …leaving only footprints of redundancy