1. International Association of Independent Tanker Owners
BIMCO/INTERTANKO
Seminar
Tokyo, Oct 2013
Sustainability of the Shipping Industry -
How are we meeting current challenges ?
Katharina Stanzel
Managing Director
INTERTANKO
International Association of Independent Tanker Owners

2. INTERTANKO International Association of Independent Tanker Owners
Non-governmental organization est in Oslo
representing interests of independent tanker operators
Strict membership criteria
250 Members in 45 countries
> 3,300 tankers, 285 million dwt
&
320 Associate Members
Spokesman - Information Service - Meeting Place
15 Technical Committees & 5 Regional Panels
Observer Status at IMO, IOPC, UNFCCC, OECD, UNCTAD
Oslo - London - Washington - Singapore - Brussels

3. How are we meeting current challenges ?
Sustainability
How are we meeting current challenges ?

4. Moore Stevens (Sept.13): “Shipping is going through one of the severest and most prolonged downturns in recent history”

5. Shipping Markets
Freight
Newbuilding
Sale & Purchase
Scrapping

6. Market 4: Scrapping
Design life 25 yrs..
really ?

7. Average Age Membership Fleet
2013 global tanker fleet:
1/3 < 5yrs
2/3 <10yrs
13% >15yrs
Average Vessel Age (yrs)

8. Iron Ore prices US$130/tonne
VLCC ideas:
Suggestion by a fellow owner: scrap anything >15 yrs
= 10% of trading fleet or 59 vessels
This year so far 6 have been scrapped
60 are still on order

9. Market 3: Sale & Purchase
Prices still way down
Greece 2nd hand tankers Jan-Aug:
51 tankers, 5.5 mio dwt

10. Source: BRS

11. Market 2: Newbuilding
Prices still down but
order books filling up

12. Tanker Supply fleet development
Tanker fleet increased some 72%
m dwt
number
Assumed orderbook August 2011, include chemical tankers
Clarksons 30. Sept.:
“Oil tanker newbuilding activity up 40%”
128 new contracts in 9 months
(122 in all of 2012)

13. When is Eco really Eco & who benefits?
Efficiency Improvements
Source: TK

14. Banks, Basel III and the rise of Private equity
Finance
Banks,
Basel III
and the rise of
Private equity

15. Market 1: Freight

17. Now ? Changing Supply & Demand both for Crude and Products
Demand Growth driven mostly by Asia
Refinery Capacity growth in China & India as well as Saudi and US Gulf
Source: BP

18. Sustainability – how are we meeting current challenges ?
charter/freight rates not covering basic vessel operating costs
earnings not supporting forward investment
charterparty terms which are not balanced and at times ignored

19. 5 Year Plan – Key Focus Areas
Sustainability of the tanker industry
Human element
Tanker safety and performance
Global maritime security threats
Greenhouse gas emission reductions
Air emission reductions
Ballast water management
Chemical Tanker Operations

20. Sustainability Project
Aim
Realign tanker industry’s key stakeholders for the
re-creation of balanced tanker trading conditions and fair risk sharing that will allow quality shipping regardless of market cycles.

21. Pilot study results - Demurrage

22. Comments so far: BP
Exxon Mobil
Koch
Repsol
Shell
Sitgo
Statoil
Total
Trafigura

23. Thank You