1. INTERTANKO Asian Panel Meeting
Singapore
11th April 2011

2. Anti-Trust/Competition Law Compliance Statement
INTERTANKO’s policy is to be firmly committed to maintaining a fair and competitive environment in the world tanker trade, and to adhering to all applicable laws which regulate INTERTANKO’s and its members’ activities in these markets. These laws include the anti-trust/competition laws which the United States, the European Union and many nations of the world have adopted to preserve the free enterprise system, promote competition and protect the public from monopolistic and other restrictive trade practices. INTERTANKO’s activities will be conducted in compliance with its Anti-trust/Competition Law Guidelines.

3. Vetting Issues Update

4. Smart Vetting 1 Vetting Committee objectives & updates:
The One Stop Shop Concept / Terminal Acceptance: We have raised the concept of formation of a common marine assurance “system” (not methodology), which would be accessible and useable by each party concerned in the screening process.
Advising of Non Acceptance: We have raised the issue regarding provision of information to owners to enable them to address what may be identified as outstanding in a prompt manner.
Conditions of Class: - Transparency to report or not to report? Major survey of members 53% response validating concerns (submitted to OCIMF GPC discussions)

5. Smart Vetting 2 Vetting Committee objectives & updates:
Reward Systems to Reduce Inspections: Exploration of establishing further reward systems to benefit good owners.
Linking TMSA and the VIQ: Gap analysis undertaken by the vetting committee: Potential benefits from linking TMSA with the VIQ could result in a further shift to more self assessment.
SIRE/CDI HVIQ: We have requested SIRE to re-assess the possibilities of harmonising the SIRE & CDI VIQ into a harmonised VIQ.

6. Smart Vetting 3 Vetting Committee objectives & updates:
Officer Matrix Requirements: SIRE and CDI have advised that they are planning to seek information from owners regarding officer training systems in their respective forthcoming revised VIQ’s
Port State Use of SIRE & CDI reports: We are reviewing the development of systems to increase the current low usage of SIRE and CDI reports by the Port State Control Authorities (Reduce the number of inspections and better target sub-standard ship)

7. Smart Vetting 4 Vetting Committee objectives & updates:
INTERTANKO Guide for Engaging Independent Ship Inspectors: Raised with SIRE: Potential for greater usage of standard set of guidelines when engaging independent ship inspectors
Reporting to Oil/Chemical Companies: We have investigated and provided information to members regarding advice pertaining to “discoverability” in association with reporting incidents to oil and chemical companies and we are in discussion with OCIMF on this subject

8. INTERTANKO Benchmarking and Databases

9. Terminal Vetting Database (TVD)
Quick recap...
What
Terminal Vetting
Tankers are vetted but are sometimes asked to make fast to poor quality berths
The vetting process works for ships, so why not for terminals?
Why
enhance safety at the terminals
improve member efficiency by influencing terminals to ‘fix’ problems
maintain industry safety record
Who
Access to the system is controlled by INTERTANKO and was strictly limited to INTERTANKO Members and Associate Members
As of 2010, access granted to all interested parties
The Terminal Vetting Database is hosted by in partnership with INTERTANKO
Access is usually set up within one business day

10. Terminal Vetting Database (TVD) – latest statistics
Stats for past 12 months:
# reports submitted: 3843
# berths covered: 1792
# reports with low rating: 350
Question containing low ratings:
Condition Apron/Fenders/Dock 82
Accessibility/Communication 76
English Skills 67
Safety Awareness 60
Bollard condition 59
Tug Performance/Condition 44
Condition Chicksans/Hose 42
Dock Lighting 42
Pre-transfer Conference 40
Emergency Preparedness 37
Courtesy 31
Surveyor Safety Awareness 29

11. TMSA related TMSA 2 Gap Analysis Document
TMSA 2 Benchmarking database
Guidance on Change management

12. TMSA LTIF AND TRCF Lost Time Frequency T. Rec. Case Frequency
NOTE: a company average below pool average is a better than average performance!
LTIF 31 Dec 2008
LTIF pool average: 1.44
# entries below pool average: 50 (61%) out of 82
LTIF 31 Dec 2009
LTIF pool average: 1.39
# entries below pool average: 68 (65%) out of 104
TRCF 31 Dec 2008
TRCF pool average: 3.40
# entries below pool average: 53 (65%) out of 82
TRCF 31 Dec 2009
TRCF pool average: 3.23
# entries below pool average: 70 (68%) out of 104
LTIF Pool Average: 1.39
Entries below pool average: (65%)
TRCF Pool Average: 3.23
Entries below pool average: (68%)

13. TMSA CREW & OFFICER RETENTION
Crew Retention Rate (Average 93.6%)
Officer Retention Rate (Average 91.3%)
Entries
Entries

14. VIQ Benchmarking
Traffic Light System, incorporating either Red or Green, to indicate if the number of SIRE VIQ observations for your fleet are either above or below the number of SIRE VIQ observations for the collective of the INTERTANKO fleet.
Red = above INTERTANKO fleet average
Green = below INTERTANKO fleet average
Fleet Average Deficiency:
"Total number of deficiencies per SIRE VIQ chapter, divided by Total number of inspections“
12 month rolling period
Confidential

15. VIQ Benchmarking (example output data)
SIRE Chapters
Certification & Documentation
0.5
0.62
0.27
Crew management
0.33
0.3
0.43
Navigation
0.8
0.56
0.84
Safety Management
1.49
1.23
0.91
Pollution Prevention
0.68
0.67
0.44
Structural Condition
0.06
0.17
0.25
Cargo & Ballast System Petroleum
1.03
Cargo & Ballast System Chemical
0.71
Cargo & Ballast System Gas
Mooring
0.78
0.41
Communications
0.14
0.24
0.29
Engine & Steering Compartments
1.05
0.88
General Appearance & Condition
0.51
0.36
Intertanko Fleet
Petroleum Average
Intertanko Fleet
Chemical Average
Intertanko Fleet
Gas Average
Petroleum
Chemical
Gas

16. Confidential Accident Reporting Platform
CARP database provides a simple functionality allowing the quick & easy updating of accident data.
Enable members to input their own incident data in a fully confidential basis whilst allowing INTERTANKO to use the information entered so that:
Lessons can be learned and shared.
Similar accidents prevented.
Standardise accident data and categorisation.
Standardise simple accident analysis, root cause, direct cause and corrective actions.
Platform Now Available

22. VIFF and PSCIFF “Vetting Inspection Feedback Forms” (VIFF)
meets SIRE Inspector Compliance Requirements
Launched May 2010
“PSC Inspection Feedback Form” (PSCIFF)
meets IMO PSCO code of conduct guidelines
Launched October 2010
Both provide a means of confidential feedback to INTERTANKO which can then be shared, confidentially, with SIRE or relevant Port State MoU

23. Environmental Issues

24. GHGs - Ship Energy Efficiency Management Plan
Environmental Issues
GHGs - Ship Energy Efficiency Management Plan
Mandatory application after MEPC 62 (July 2011)
Charterers already referencing SEEMP (IMT MESQAC)
Biofouling
Voluntary Guidelines to be adopted MEPC 62
Ballast Water Management
...!!

25. Environmental Issues Ballast water management
IMO Legislative Status
The BWM Convention will enter into force 12 months after ratification by 30 States, representing 35 per cent of world merchant shipping tonnage.
Currently 27 countries representing 25.32% of world merchant shipping tonnage
Implementation dates still important...

26. Environmental Issues Ballast water management
Entry into force
Summary of implementation dates:
Ship constructed before 2009
BW capacity m3 – have treatment system from first intermediate or renewal survey after anniversary date in 2014
BW capacity less than 1500m3 and greater than 5000m3 – have to have treatment system from first intermediate or renewal survey after anniversary date in 2016
Ship constructed in or after 2009
BW capacity less than 5000m3 shall have a treatment system installed at its second annual survey and no later than 31/12/2011
Ship constructed after 2009 but before 2012
and with a BW capacity greater than 5000m3 shall have a treatment system from first intermediate or renewal survey after anniversary date in 2016
Ship constructed in or after 2012
with a BW capacity of greater than 5000m3 shall be constructed with a BW treatment system
‘Constructed’ in respect of a ship means a stage of construction where:
.1 the keel is laid; or
.2 construction identifiable with the specific ship begins; or
.3 assembly of the ship has commenced comprising at least 50 tonnes or 1 percent of the estimated mass of all structural material, whichever is less; or
.4 the ship undergoes a major conversion.
All implementation dates above reflect requirements in Regulation B-3.
In terms of a ballast water treatment system as referenced, then this refers specifically to a system that meets the standard specified in Regulation D-2 of the Convention. Note that the Convention does not specify that a ship must install a system but that a ship must meet the D-2 standard – which de facto means the installation of a treatment system.
Dragos – in reference to the IACS clarification notes and MEPC 61, we are supportive of their interpretation on the anniversary dates.

27. Environmental Issues Ballast water management
The Challenges:
Compliant systems for the Convention and regional legislation (i.e. USA - NY, CA x100 to x1000 beyond IMO)
Owner compliance with US or IMO standards
Installation of treatment systems on a large scale
IMO Review:
Installation realities – capability of industry to install systems in time frame ( , ~50,000 ships)
Contract realities – how many owners planning to install systems (INTERTANKO member survey)
Sampling and testing – what will happen after installation?
Dragos:
Bullet 1 – regardless of the scientific fact that we do not have the capability to meet the standards of even IMO, NY and Cal States moving ahead with requirements. This puts owners in difficult position – do they hold of installing IMO compliant systems now on the basis that better systems will come onto the market and meet regional requirements as well?
Bullet 2 – The larger vessel issue is now coming to the attention at IMO – i.e. for vessels with a ballast water capacity greater than 5000m3.
Bullet 3 – Will the type approved systems actually meet the standards even when installed and running on board? Do the IMO guidelines on type approval G8 and G9 need reviewing and does the testing procedure, specifically relating to the laboratories, need reviewing?

28. Environmental Issues Ballast Water Treatment
Concern expressed over treatment systems to meet 2012 deadline
INTERTANKO Environmental Committee & ISTEC
Questionnaire:
1. Policy – who and how many systems?
2. Practicality – installing and using BWT systems
INTERTANKO Ballast Water
Treatment Systems Guide

29. Regional Issues

30. Regional Issues China Oil Pollution Regulations
Regulations on the Prevention and Control of Ship-Induced Pollution of the Marine Environment
Latest requirements effective 1st February 2011
Relating to discharge of ship and cargo generated wastes as well as the use of port reception facilities
Compulsory Discharge (as per European Directive – no exemption?)
Pollutant receiving certificate required before ship is allowed to clear port
Administration:

31. Regional Issues China Oil Pollution Regulations
Regulations on the Prevention and Control of Ship-Induced Pollution of the Marine Environment
Administration:
For International vessels, all waste to be discharged prior to port clearance and PRC from MSA shown to port authority
Prior to Waste Discharge
PRF / Ship Agreement
PRF Obtain Permit of Operation from MSA
After Waste Discharge
PRF provides Ship with PRD – signed by Master
Ship applies MSA PRC using PRD

32. Regional Issues China Oil Pollution Regulations
Regulations on the Prevention and Control of Ship-Induced Pollution of the Marine Environment
INTERTANKO Observations and Queries
Does the ship operator have to gain a Pollution Receiving Certificate each time the ship leaves port or on a periodic basis (annually)?
Does the contract have to be with one reception facility (contractor) or can it be more than one?
What are the limits of fees?
Is there a threshold at which compulsory discharge does not apply? e.g. if waste quantities minimal as per EU Directive?

33. Regional Issues Japan Earthquake and Tsunami
Precautions for vessels trading into Japan ports?
Information gathering on radiation levels
Crew protection and precautions?
Equipment required?
Ship/port interface?
Inspections and analysis by ports after vessel has traded to a Japanese port?
Which ports?
What level of radiation is being deemed abnormal?

34. For more information please visit www.intertanko.com
thank you
For more information please visit 36

35. Tanker Market Overview

36. Tanker Market Oil price and freight rates 1970-2011
$ per barrel

37. Tanker Demand Increase in world oil demand
bn tonne-miles
Based on Fearnleys

38. Tanker Demand Tanker trade
bn tonne-miles
Based on Fearnleys

39. Tanker Demand Seaborne Oil Trade and Middle East Oil production
mbd
000 bn tonne-miles
Asia 80% dependent on Middle East, Europe 18% and US 17% - some 15 mbd crude oil through Hormuz 2010
Based on Fearnleys/IEA

40. Tanker Supply Tanker fleet development
m dwt
number
Assumed max phase out, orderbook March 2009, include chemical tankers
Tanker fleet increase some 75%

41. Tanker Supply Tanker phase out, deliveries, scrapping tankers 10,000 dwt + balance assuming various demand increases
m dwt

42. For more information please visit www.intertanko.com
thank you
For more information please visit 44