Leading the way; making a difference Hellenic Mediterranean Panel April 10, 2014 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

Leading the way; making a difference MEMBERSHIP BUDGET SECRETARIAT CURRENT MAJOR ISSUES ANNUAL TANKER EVENT

Leading the way; making a difference MEMBERSHIP 210+ Members 3,000+ Tankers 270+ Million DWT Members in 40+ countries 300+ Associate Members

Leading the way; making a difference INTERTANKO Membership

Leading the way; making a difference INTERTANKO membership end 2013 Membership by type of tanker by number Membership by type of tanker by dwt

Leading the way; making a difference Members by size of fleet Number tankersNumber members Number of tankers 3,083, number of members 213 Number of tankers

Leading the way; making a difference Members by size of fee Total fee per segmentNumber members Max fee is $72,675, Min fee is $5,985 $ fee range

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Leading the way; making a difference (Actual) (Actual)(Budget) Total Operating Income (US$)6,886,363 6,768,2036,800,477 Total Operating Expenses (US$)6,021,9656,206,9436,780,740 Operating Result 864, ,260 19,737 Non-operating Income/expenses 321, , ,000 Result for Year1,185, ,747 1,737 BUDGET

Leading the way; making a difference 19 STAFF MEMBERS IN 4 OFFICES Oslo (8), London (9), Singapore (1), USA (1) STAFF INCLUDES Managing Director (London) Deputy Managing Director & Director of Regulatory Affair (USA) Technical Director (Oslo) Marine Director (London) General Counsel (London) Senior Environmental Manager (Singapore) Currently seeking applicants for Technical and Marine staff SECRETARIAT

Leading the way; making a difference CURRENT MAJOR ISSUES Sustainability Value Proposition Vetting Ballast water management Greenhouse gas emissions

Leading the way; making a difference Why a Sustainability Project?? Charter/freight rates not covering basic vessel operating costs Earnings not supporting forward investment Charter party terms which are not balanced and at times ignored SUSTAINABILITY

Leading the way; making a difference Desired Outcome: Achieve balanced and fair trading conditions for the tanker industry regardless of the prevailing freight market Focus Use of SIRE as intended to reduce cost of Vetting inspections Improve late payment of freight and demurrage Code of Conduct for tanker chartering SUSTAINABILITY

Leading the way; making a difference INTERTANKO VALUE PROPOSITION Clearly and succinctly articulate INTERTANKO’s value to our members Develop marketing materials targeted at different levels within a company to cater to: 1. Existing Members; 2. New/potential Members; 3. External stakeholders For external stakeholders consideration will be given to whether they might view being an INTERTANKO Member as a positive sign that attracts advantageous treatment.

Leading the way; making a difference MEMBER ENGAGEMENT INTERTANKO VALUE PROPOSITION 1. 1.What are the 3 most important things INTERTANKO offers ? t to You as an individual // to your company 2. 2.How would you describe INTERTANKO in one sentence ? 3. 3.How would you describe the unique value of INTERTANKO - what is the Association’s strength? 4. 4.What do you think INTERTANKO can improve on ? What do ‘competitors’ do better than INTERTANKO ? What does INTERTANKO do better than them?

Leading the way; making a difference OCIMF Sire WG/INTERTANKO Vetting VC Initiated by INTERTANKO VC Chairman Initial focus was “the decline in the use of the SIRE system by OCIMF members” Issued discussed included: - - Increased sharing of ship inspection statistical data - Improved feedback systems on ship inspections and inspectors - - Development of best practice guidance on important areas of marine risk assurance - Development of matters related to crew competency TANKER VETTING

Leading the way; making a difference

KEY ELEMENTS of OCIMF Chairman letter “I emphasise to you the importance of continuing to utilise the existing inspection reports contained in the SIRE database to the greatest possible extent.” “I would ask all OCIMF members to... take every opportunity to eliminate unnecessary inspections.” “I also... remind you... only to inspect the vessels needed to meet anticipated chartering requirements. “The SIRE system is a programme OCIMF members can be rightly proud of... and I request your help in doing so by taking every opportunity to eliminate duplication in your inspection regimes.” TANKER VETTING

Leading the way; making a difference Recent issue on Vetting Committee agenda Shell policy on ship visits by tanker company senior management and CEOs No collaboration with tanker owners/operators in developing policy Issues/concerns with policy 1. 1.Will it be productive? 2. 2.Will it leak into compliance? 3. 3.Why are officer conference not included? VC agrees to learn more details about this policy and work with Shell to make this initiative work better for INTERTANKO members TANKER VETTING

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Leading the way; making a difference 2014 ANNUAL TANKER EVENT Venue – New York City Dates – May 6 - 9, 2014 Events:Executive Committee Meeting Council Dinner and Meeting Annual General Meeting Gala Dinner Tanker Seminar Workshop

Leading the way; making a difference THANK YOU!!