Leading the way; making a difference INTERTANKO’s P ayment P erformance S ystem Bill Box Senior Manager Communications & External Relations Area Manager.

Slides:



Advertisements
Similar presentations
RXQ Dual Billing Process Flow Distribution Company Supplier Customer Distribution Company reads meter(s) ( ) Supplier receives and processes.
Advertisements

Letter of Credit.
CHARTERERS DEFAULT - LIEN OVER CARGO BY IAN GOULSON.
Cargo Direct International
Financing Foreign Trade
Virtual Arrival. Virtual Arrival An OCIMF / INTERTANKO project reducing emission Virtual Arrival is all about managing time and managing speed. It’s not.
INTERTANKO APRIL Intertanko “Preparing for the Unpredictable” Robert P. Curt ExxonMobil Marine Transportation.
Public Service Pay and Transformation Agreement Imposition of Public Service Pension Levy in April 2009 National Public Service strikes in November.
Virtual Arrival an Initiative by Shipping to reduce GHG emission Singapore 8 may 2012 Senior Manager Research & Projects INTERTANKO.
York Antwerp Rules 2004 Progress or problems for Underwriters and Shipowners? Tim Madge FAAA - Partner Mediterranean Average Adjusting Company Marine Law.
Massimiliano Di Pace1 INTERNATIONAL PAYMENTS Handling international payment can be complicated and risky The problems can be: - currency - transfer of.
Workplan Priorities INTERTANKO Mission Provide Leadership to the Tanker Industry in serving the World with safe, environmentally sound and efficient.
Latin American Panel November 1, 2011 WORKPLAN PRIORITIES JOSEPH ANGELO MANAGING DIRECTOR.
The four shipping markets Dr D.Polemis
McGraw-Hill/Irwin©2007, The McGraw-Hill Companies, All Rights Reserved Essentials of Accounting for Governmental and Not-for-Profit Organizations Chapter.
Adjustment & COCP Barbara Kwok Licensing Operations Specialist.
MARITIME TRANSPORTATION MANAGEMENT
Compliance April 29, What is Customs Compliance? A program of ‘shared’ responsibility in which Customs requires all importers to demonstrate reasonable.
Welfare Reform Changes & Impacts. Income Support Social Fund DLA Tax Credits Council Tax ESA Housing Benefit JSA.
Overview.  Accreditation is both a status and a process  Status:  Status: Accreditation provides public notification that standards of quality are.
Chapter 2 Documents of Import & Export
Regional Action Plan for Sustainable Transport of Dangerous Goods along the Mekong River Final Regional Workshop,21-22 October 2014 Bangkok, Thailand 1.
INTERTANKO An Introduction & Key issues facing the tanker industry today Presented by John C. Fawcett-Ellis Legal Counsel & Regional Manager Asia-Pacific.
Compliance with Maine Workers’ Compensation Board Requirements Office of Monitoring, Audit and Enforcement Rev 4/29/13.
1 How does ERCOT Review, Verify and Approve RMR Costs? (In response to questions that were asked during PRR 632 discussions) Prepared for the
Chapter Seven Payment. Section 1 Introduction Understand the various methods of payment in order of decreasing risk to the seller and increasing risk.
Presentation to the HELLENIC MEDITERRANEAN PANEL HELLENIC MEDITERRANEAN PANEL (Athens, Greece - 23 October 2008)On US DISCHARGE STANDARDS -The NPDES Program-
INTERTANKO Council Meeting Athens, May 2011 Documentary Committee Overview David Chapman Managing Director OSG Tankers UK Ltd Image Courtesy of NORDEN.
Terminal Vetting Database II Latin-American Journey of SPM Operators Cartagena – Sep 29, 2006.
INTERTANKO Tanker Chartering Seminar Kindly supported the India National Shipowners’ Association The Oberoi Hotel, Mumbai 3 October 2006 John Fawcett-Ellis,
Worldscale Association (London) Limited1 WORLDSCALE New Worldwide Tanker Nominal Freight Scale Structure and Uses.
INTERTANKO and the tanker Industry WMU Oslo 24 September 2007 Manager Research and Projects.
INTERTANKO’S Legal Work, issues, strategy & legal services Svein Ringbakken, Deputy Managing Director & General Counsel, INTERTANKO.
Service Quality Innovation Trust Safety The Samet Way “Managing the Company Cash Position” Accounts Payable (AP) should always be less than Accounts Receivable.
Members SEMINAR April 8, 2011 INTERTANKO Overview Report Joseph Angelo Managing Director.
An introduction to the Ports and Terminal Section of INTERTANKO by Gunnar A Knudsen Manager INTERTANKO for World Maritime University Oslo, 24 September.
Leading the way; making a difference Human Element in Shipping Dr Phillip Belcher Marine Director INTERTANKO.
Shortage of Trained Tanker Officers ? “The INTERTANKO Solution” Hellenic Mediterranean Panel 23 rd October 2008 Athens Capt Howard N. Snaith. Marine Director.
Leading the way; making a difference Hellenic Mediterranean Panel April 10, 2014 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR.
Latin American Panel November 1, 2011 INTERTANKO OVERVIEW REPORT JOSEPH ANGELO MANAGING DIRECTOR.
1 QUARTERLY EXPENDITURE ANALYSIS FOR THE DEPARTMENT OF LABOUR 2013/ /15 PRESENTED BY: Musa Zamisa Phelelani Dlomo 15 OCTOBER 2014.
Leading the way; Making a difference INTERTANKO Hellenic Mediterranean Panel Sustainability Project Thursday 10 April 2014 Athens.
Leading the way; Making a difference INTERTANKO Technical Seminar Busan, October 2013 INTERTANKO Update Katharina Stanzel Managing Director INTERTANKO.
HELLENIC MEDITERRANEAN PANEL HELLENIC MEDITERRANEAN PANEL March 10, 2011 INTERTANKO OVERVIEW REPORT JOSEPH ANGELO MANAGING DIRECTOR.
Financing Foreign Trade. Learning Objectives What are the key elements of an import or export transaction? What are the three key documents in import.
-CHARTERPARTIES- INTRODUCTION
Challenges for the tanker sector in the second decade of the 21 st century Bill Box Senior Manager Communications & External Relations INTERTANKO Plymouth.
Leading the way; making a difference INTERTANKO – Sustainability Project Primary Focus: late payments by charterers Ultimate Aim: to change ingrained bad.
Arkansas Department of Emergency Management Arkansas’ Homeland Security & Preparedness Agency Sandy Recovery Improvement Act of 2013 Public Assistance.
Blue Cross and Blue Shield of Nebraska is an Independent Licensee of the Blue Cross and Blue Shield Association. Timely Filing and Corrected Claims October.
CHAPTER SIX THE BUSINESS OF FOREIGN TRADE. Facilitating international trade is one of the most important activities of a bank’s international department.
AMERICAN PILOTS ASSOCIATION OCTOBER 22, 2008 INTERTANKO PARTNERING WITHPILOTS JOSEPH ANGELO DEPUTY MANAGING DIRECTOR.
Leading the way; making a difference LATIN AMERICAN PANEL November 5, 2014 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR.
Office of Monitoring, Audit and Enforcement Web Feb 2016.
Leading the way; Making a difference INTERTANKO International Association of Independent Tanker Owners INTERTANKO Documentary Committee Overview Michele.
EICC Action on Public Procurement
International Association of Independent Tanker Owners
INTERTANKO’s International Chartering Forum
LESSON 9-1 Journalizing Purchases Using a Purchases Journal
THE BUSINESS OF FOREIGN TRADE
SEATRADE Tanker Industry Conference
Environmental concerns
INTERTANKO OVERVIEW REPORT DEPUTY MANAGING DIRECTOR
Bill Box Senior Manager Communications & External Relations INTERTANKO
Virtual Arrival Example – Bro Elizabeth
DEPUTY MANAGING DIRECTOR
Sponsored Award Administration-Post
Regulatory Compliances and Financial Controls for MCSTs
Your Pension Service Pre Retirement Presentation
UPDATE ON SMEs RELATED MATTERS
Presentation transcript:

Leading the way; making a difference INTERTANKO’s P ayment P erformance S ystem Bill Box Senior Manager Communications & External Relations Area Manager for Greece & Cyprus Hellenic Mediterranean Panel 2 October 2014

Leading the way; making a difference INTERTANKO – tanker sustainability Key issue but change of emphasis (Council and ExCom) From poor charter/freight rates not covering basic vessel operating costs (min safe freight rate) To inconsistent, unbalanced c/p terms and vetting practices And late payment of freight and demurrage hits owner’s cashflow increases owner’s working capital req’t

Leading the way; making a difference Sustainability Project It’s about assistance to Members at a practical level: It’s about specifics: Erosion of, and failure to adhere to c/p terms Lack of understanding about Worldscale Inconsistent, subjective, costly vetting practices Delays in freight and demurrage settlements

Leading the way; making a difference Sustainability Project ty

Leading the way; making a difference Sustainability Project Contractual obligations NOT met Freight payable on completion of discharge Pilot study: Typical 6-10 days Demurrage payable on receipt owner’s invoice Pilot study: Typical nearly 100 days

Leading the way; making a difference Sustainability Project Ultimate Aim: to change ingrained bad habits Action: Not only INTERTANKO Chairman’s letter to charterers >70 top level recipients oil companies and oil traders INTERTANKO’s industry voluntary Code of Conduct But also INTERTANKO’s Payments Performance System

Leading the way; making a difference Payments Performance System

Leading the way; making a difference Payments Performance System What does this mean for you? 5 ship fleet Each fixing once a month 5% cost of funds Average F & D amounts per pilot study > $200,000 a year F&D payment delays cost > $200,000 a year 2 day reduction in freight delays: $20,000 a year Halving demurrage delays (120>>>60): $56,000 a year

Leading the way; making a difference Payments Performance System

Leading the way; making a difference Payments Performance System

Leading the way; making a difference Payments Performance System

Leading the way; making a difference Payments Performance System

Leading the way; making a difference PPS: Output and Deliverables What you get … What you get … Top 20 best payment performers Average delays in freight payments Average delays in negotiating demurrage claims Average delays in payment of agreed demurrage claims Average delays in submitting demurrage claims

Leading the way; making a difference PPS: Output and Deliverables Plus + Plus + Comparison between owner’s own fixtures/charterers Comparison between owner’s own data and other Members Comparison between charterers (sub compliance with anti-trust/competition rules) Comparison between different tanker types USD amount overdue for how long (i.e. to calc cost of extra working cap) Comparison of payment performance over time

Leading the way; making a difference PPS Data needs What you give … What you give …  Charterer name  Vessel name  Vessel dwt  Voyage start date  Voyage end date

Leading the way; making a difference PPS Data needs Plus + Plus +  Invoice amount for freight  Invoice amount for demurrage  Invoice dispatch date for demurrage  Dispute notified date (if appl)  Claim agreed date (if appl)  Invoice payment date for freight  Invoice payment date for demurrage  Amount actually paid for demurrage

Leading the way; making a difference PPS - next steps  Agreement to participate (terms & conditions)  Engagement  Data transfer testing  Going live