1. DEPUTY MANAGING DIRECTOR
NORTH AMERICAN PANEL October 29, 2014
INTERTANKO OVERVIEW
JOSEPH ANGELO
DEPUTY MANAGING DIRECTOR

2. MEMBERSHIP
BUDGET
SECRETARIAT
CURRENT MAJOR ISSUES
FDIP
ANNUAL TANKER EVENT

3. MEMBERSHIP
210+ Members
3,000+ Tankers
270+ Million DWT
Members in 40+ countries
300+ Associate Members

4. INTERTANKO membership end year
Number members/m dwt
Number ships

5. INTERTANKO membership by type tanker

6. Members by size of fleet
No tankers
Number members
Number of tankers 3,018, number of members 214

7. Members by size of fee Max fee is $72,675, Min fee is $5,985
Total fee
Number members
$ fee range
Max fee is $72,675, Min fee is $5,985

8. INTERTANKO membership fleet by country of registration
m dwt
Number

9. INTERTANKO membership by Flag

10. INTERTANKO membership by Class

11. Average age membership INTERTANKO membership fleet
Years

12. BUDGET (Actual) (Actual) (Budget) Total Operating
(Actual) (Actual) (Budget)
Total Operating
Income (US$) 6,886, ,768,203 6,800,477
Expenses (US$) 6,021,965 6,206,943 6,780,740
Operating Result , , ,738
Non-operating
Income/expenses , , ,000
Result for Year 1,185, , ,738

13. INTERTANKO income and staff
Staff no.
Income $ m

14. SECRETARIAT 20 STAFF MEMBERS IN 4 OFFICES STAFF INCLUDES
Oslo (8), London (10), 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 applicant for Marine staff

15. Ballast water management
CURRENT MAJOR ISSUES
Sustainability
Value Proposition
Vetting
Ballast water management
Air emissions

16. SUSTAINABILITY 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

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

18. SUSTAINABILITY CODE OF CONDUCT for Tanker Chartering
Conduct at all times in accordance with the concept of ‘good faith’
Uphold the principles of fair and legal dealing with all stakeholders
Comply with high standards of integrity and respect for others
Conduct business as responsible corporate members of society
Understand the needs of all stakeholders
Listen and respond to all business partners in a prompt, professional and respectful manner
Behave in ways that earn the trust of others
Uphold these principles regardless of how they are treated by others

19. SUSTAINABILITY Next steps
Direct action with senior oil company executives responsible for chartering strategy
Invitation to consider and engage with CoC
Continue R&D to identify/quantify facts and figures illustrating the big issues and to help redress market imbalances

20. SUSTAINABILITY Payment Performance Database
Focus: late payment of freight and demurrage
Need for database of specific payment information from members
Why? To be able to prove trends which back up our arguments on late payments
Pilot Study Proof of Concept > 5,900 data points from
Database satisfies anti-trust criteria

21. SUSTAINABILITY Payment Performance Database Contractual obligations?
Freight
Charter party – payable on completion of discharge
Pilot study – Typical 5-10 days
Demurrage
Charter party – payable on receipt of owner’s invoice
Pilot study – Typical > 90 days

22. SUSTAINABILITY

25. SUSTAINABILITY What you get … Top 20 best payment performers
Average delays in freight payments
Average delays in submitting demurrage claims
Average delays in negotiating demurrage claims
Average delays in payment of agreed demurrage claims

26. SUSTAINABILITY
Plus –
Comparison between owner’s own fixtures/charterers
Comparison between owner’s own data and other Members’
Comparison between charterers (subject compliance with anti-trust/competition rules)
Comparison between different tanker types
USD amount overdue for how long (i.e. to calculate cost of extra working cap)
Comparison of payment performance over time

27. SUSTAINABILITY What you give … Charterer name Vessel name Vessel dwt
Voyage start date
Voyage end date

28. SUSTAINABILITY Plus – Invoice amount for freight
Invoice amount for demurrage
Invoice dispatch date for demurrage
Dispute notified date (if applicable)
Claim agreed date (if applicable)
Invoice payment date for freight
Invoice payment date for demurrage
Amount actually paid for demurrage

29. Payment Performance Database
SUSTAINABILITY
Payment Performance Database
Data Security
System designed by data encryption experts
Your data is private to you and encrypted
Secure login and data storage
Secure connection through https protocol
System servers located in purpose built hosting centre with best-of-breed security
Your private data is only available to you, and to INTERTANKO administrators

30. Payment Performance Database
SUSTAINABILITY
Payment Performance Database
Value as resource to back up our findings on charterer payment performance
Value as resource for members to use benchmark overall and specific situation
Value increases as contributions of data increase
Database success depends on Members contributing their payments data and trusting us to handle this sensitive information

31. VALUE PROPOSITION
Clearly and succinctly articulate INTERTANKO’s value to our members
Develop marketing materials targeted at different levels 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.

32. VALUE PROPOSITION MEMBER ENGAGEMENT – Spring 2014
What are the 3 most important things INTERTANKO offers ?
to You as an individual // to your company
How would you describe INTERTANKO in one sentence ?
How would you describe the unique value of INTERTANKO - what is the Association’s strength?
What do you think INTERTANKO can improve on ?
What do ‘competitors’ do better than INTERTANKO ? What does INTERTANKO do better than them?

33. VALUE PROPOSITION SUMMER 2014 FALL 2014 NOVEMBER 2014
Qualitative exploration amongst a small sample of Council members
FALL 2014
Online quantitative survey of members opinion providing statistical rigour and benchmark measure for ongoing evaluation
NOVEMBER 2014
Value Proposition presented to Council meeting

34. TANKER VETTING SHIP INSPECTION REPORT PROGRAM (SIRE)
Established by OCIMF in 1994 to:
1. Provide standardized tanker inspection report; and
2. Allow all OCIMF members to use any report in the database with confidence
One of the primary objectives was to reduce the number of tanker inspections
SIRE brochure stated “ideal interval between inspections is therefore around 4–6 months”
Recent information from INTERTANKO members is that OCIMF members are requiring inspections much more frequently

36. TANKER VETTING 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.”

37. OCIMF Sire Working Group/ INTERTANKO Vetting Committee
TANKER VETTING
OCIMF Sire Working Group/
INTERTANKO Vetting Committee
Initial focus was “the decline in the use of the SIRE system by OCIMF members”
Issues 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
Accident database

38. TANKER VETTING TWO RECENT ISSUES OF CONCERN SHELL
Ship visits by company CEOs (quarterly) and senior management personnel (monthly)
2. OIL TERMINALS “CONDITION OF USE”
Oil terminals require the Master to sign/accept a document as a pre-condition of being allowed to load/discharge at the relevant terminal which contain onerous terms that usually exonerate the terminal from any liability for any damage caused to the vessel even if the damage is caused by the Terminal.

39. FREIGHT & DEMURRAGE INFORMATION POOL
FDIP
FREIGHT & DEMURRAGE INFORMATION POOL
Service offered to members by INTERTANKO who will act on members’ behalf and in their interest to recover undisputed debt and to encourage prompt and responsible dialogue for disputed claims.
Members pass INTERTANKO the details of their claims and contact details for the charterers. We then contact the charterers or other debtors
Fee for the FDIP is USD 1440 per year, the cost of just a few hours legal advice from a London lawyer. The fee covers a members’ entire fleet entered with INTERTANKO and is for an unlimited number of claims.

40. FDIP How our FDIP can help you:
1.    Maintains database of charterers that have been reported to FDIP – members able to request information on specific charterers to see experience encountered with them;
2.    Publishes FDIP Statement that lists charterers that have persistently failed to settle claims; publishes a FDIP Circular that contains articles on recent cases on laytime/demurrage, recent clauses and information on particular charterers;
3.    Members are able to report claims to the FDIP following which the FDIP will request charterers to initiate a dialogue with owners or pay an agreed claim as appropriate;
4.    Where parties dispute the effect of the provisions of a charter party, they may seek independent advice from the INTERTANKO’s legal section.

41. 2015 ANNUAL TANKER EVENT Venue: Athens, Greece
Dates: May , 2015
Events: Executive Committee Meeting
Council Dinner and Meeting
Annual General Meeting
Gala Dinner
Tanker Seminar
[Workshop]
Details to follow soon!!

42. THANK
YOU