1. The Institute of Chartered Shipbrokers, London Branch 25 October 2006 “The POSEIDON Challenge” Peter M. Swift Managing Director, INTERTANKO

2. International Association of Independent Tanker Owners Represents responsible oil and chemical tanker owners worldwide, promoting their interests and providing members with technical, operational, legal, documentary and other support services, information and advice. 250 + members representing > 80% of the independent oil tanker fleet and > 85% of the chemical carrier fleet, with strict membership criteria 300 + associate members in oil and chemical tanker related businesses 15 Committees - 4 Regional Panels Representative Offices in Europe, US and Asia

3. Mission and Vision MISSION “Provide leadership to the Tanker Industry in serving the world with the safe, environmentally sound and efficient seaborne transportation of oil, gas and chemical products.” VISION FOR THE TANKER INDUSTRY “A responsible, sustainable and respected Tanker Industry, committed to continuous improvement and constructively influencing its future.”

4. One of the Association’s primary goals: Lead the continuous improvement of the Tanker Industry’s performance in striving to achieve the goals of: Zero fatalities Zero pollution Zero detentions

5. Total Losses by Number (Ships over 100gt) A “loss” refers to ships damaged beyond economic repair Source: Lloyd’s Register Fairplay 199719981999200020012002200320042005 0 50 100 150 200 250 300 Number of Ships

6. Source: ITOPF. Number of spills above 700 tonnes. Development of Oil Spills

7. 0 5 10 15 20 25 30 35 1971-751975-801981-751986-901991-951996-002001-05 Pollution from tankers Tonnes / billion tonne mile Tanker accidental pollution rate tonnes spilt per bn tonne miles trade Source: ITOPF spills, Fearnleys: Tonne miles

8. 0 200 400 600 800 1000 78798081828384858687888990919293949596979899000102030405 War Hull & Machinery Fire/Explosion Grounding Collision/Contact Other Reported tanker incidents (1978 – 2005)

9. Safely and Reliably

10. Cost Effectively Freight rate and oil price (USD/bbl) deflated by the US consumer price index Oil price 2006 is approx price end April and not average price for the year. Oil price and tanker freight rate 1976-2006

11. Shipping Industry Performance A record of “continuous improvement” But the industry is not complacent ! The reality is that: Irrespective of today’s performance expectations will be greater tomorrow !

12. Shipping Industry : A record of “continuous improvement” Q: How has this been achieved ? A: A combination of Regulation and Self-Regulation Although difficult to prove !

13. “Good” Regulation AND Industry Best Practice

14. Industry works to encourage “Effective” Regulation Developed at the global level, wherever appropriate (consistent with existing law) Fit for purpose (provides solutions) Properly considered (stakeholders involved) Impact(s) fully assessed (economic and social) If adopted, implemented uniformly and promptly Engaging with legislators, regulators, politicians and the media

15. Industry works to develop and promote “Self Regulation” Adopting “best practices” Producing industry guidelines Developing programmes, procedures, etc. - Design, Shipbuilding, Operations, Training, Inspections, Investigations and more… Engaging with partners, legislators, regulators, politicians, media and public

16. The Poseidon Challenge

17. BUILDERS MANAGERS EQUIIP SUP CLASS FINANCIERS CARGO BROKERS P&I HULL INSR FLAG STATE COASTAL STATE WATERWAYS PORTTERMINALS BUNKERERS PILOTS TUGS LABOUR CREW AGENTS REPAIRERS SALVORS INCIDENT MGT SHIPBREAKERS EDUCATION TRAINING DESIGN OWNER OPERATOR STAKEHOLDERS AGENCIES GOV IMO STATESLOCAL GOV CARGO

18. Poseidon Challenge - commitment to continuous improvement - commitment to working with all partners

19. The Poseidon Challenge - what can we do ? “If you think safety training and education are expensive then try an accident. Not just training of seafarers but shore staff too. ICS education and training provider with, in 2006, 1400 candidates sitting 3700 papers in 78 examination centres worldwide. Strengthens links in chain of responsibility by giving the industry better-educated staff, through a commitment to staff development; a safer shipping environment with less contractual risk in the system; demonstration of self-regulation with common worldwide standard of professional competence and conduct. We give you our word that the ICS accepts the challenge and fully supports Poseidon Challenge. We shall promote this initiative whenever and wherever we can.” COMMITMENTS: - Committed to raising professional standards. - Challenge to those present to submit minimum of 5 staff for ICS foundation diploma education programme the in next 12 months. - The ICS Education Trustees have agreed to a new prize of £1000 which will be awarded to the candidate who in the Examination Board’s opinion has been the most outstanding student of the year. This prize is being launched as a Poseidon initiative.

20. The Poseidon Challenge - what can we do ?

21. Final thoughts: Do we tolerate standards below the accepted “norms” ? Do we make the most effective use of the information available ? EQUASIS, Q88, other ? Is there a Role for the Institute in developing / improving access to data

22. EQUASIS Information System The principles behind Equasis: A tool aimed at reducing substandard shipping (limited to safety-related information). An international database covering the whole world fleet. Involvement of ALL players involved in the maritime industry. A tool to be used for the better selection of ships The promotion of the exchange of unbiased information and transparency in maritime transport (- to be better informed about the performance of ships and maritime organisations).

23. Learning from Tanker incidents: 2005 OR NOT ? Hull & Machinery. Fire & Explosions. Grounding Collision* Miscellaneous *includes contact dwt rangeTotal Below 10,00069 10-29,99934 30-99,99940 100,000+18 Total161 AgeTotal Built 1970s25 Built 1980s51 Built 1990s56 Built 2000s29 Total161 Total 161 29 engine, 3 hull

24. The Poseidon Challenge - what can we do ? And a final final thought: In order to trade a ship, we need: A licence from the Flag State A licence from the Classification Society To be acceptable to the insurers And a charterer Where does the broker fit in this quality challenge ?

25. THANK YOU www.intertanko.com www.shippingfacts.com www.themaritimefoundation.com