1. China Oil Transportation Safety Forum Shanghai, China - July 20, 2011 Analysis of Tankers Accidents and the Human Element in Oil Transportation Safety JOSEPH ANGELO MANAGING DIRECTOR

2. INTERTANKO Tanker Statistics Human Element

3. INTERTANKO INTERTANKO is a non-governmental organization established in 1970 to represent the interests of independent tanker operators at the international, regional, national and local levels Staff of 24 with offices in London, Oslo, Washington, Singapore and Brussels NGO status at the International Maritime Organization (IMO) and the International Oil Spill Compensation Fund. Consultative status at the United Nations Conference on Trade and Development.

4. INTERTANKO 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

5. INTERTANKO PRIMARY GOAL Lead the CONTINUOUS IMPROVEMENT of the Tanker Industry’s Performance in striving to achieve the Goals of: Zero Fatalities Zero Pollution Zero Detentions

6. MEMBERSHIP MEMBERSHIP is open to independent tanker owners and operators of oil and chemical tankers (i.e. non-oil companies and non-state controlled tanker owners) who meet the membership criteria. ASSOCIATE MEMBERSHIP is available to any entity with an interest in the shipping of oil and chemicals.

7. MEMBERSHIP 250+ Members 3,300+ Tankers 285+ Million DWT Members in 40+ countries MORE THAN 75 % OF THE INDEPENDENT TANKER FLEET 300+ Associate Members

8. Tanker Statistics

9. All reported tanker incidents all tankers all sizes and accidental oil pollution from tankers (bars) Seaborne oil trade has increased some 30% since 2000 Number ’000 ts

10. All reported tanker incidents all tankers all sizes all types of incidents show ≈ the same trend Number Grounding decline the most, typical human related incidents collision and grounding 43% of incidents in 2011, (50% in 2010, 47% in 2009, 48% in 2008), hull& machinery incidents mainly engine failure, hardly any hull failures

11. Tanker incidents by type % of total Source: INTERTANKO, based on data from LMIU, ITOPF + others 2012 a projection based on 166 days

12. Tanker incidents Rate is number incidents divided by number tankers in the segment Worst incident 2009 may be collision/fire Formosa Brick collision in the Straits of Singapore Aug 2009 9 fatalities and Elli that broke in to two at the entrance Suez Canal.

13. Tanker hull & machinery incidents Number incidents Based on data from LMIU, ITOPF + others

14. Hull & machinery incidents Engine – on average 55%, 2011 71%Number

15. Tanker hull & machinery incidents Number of incidents Based on data from LMIU, ITOPF + others Year<10 years10-24 years>25 yearsTotal Average age 200243152217.5 20033381418.4 20042271118.0 200595203417.6 2006123173214.3 2007203254813.2 20082510245915.6 2009813225316.7 2010*6351417.5 Total894514328715.6 2010 figures are for 110 days

16. Accidental oil pollution into the sea spills per tonne-miles 1970-2011 Source: INTERTANKO/ITOPF Tonnes spilt per bn tonne miles oil transportation No major this year oil spill until June 2011 Record low 2008/09

17. Accidental oil pollution into the sea and tanker trade Source: INTERTANKO/ITOPF/Fearnleys 1000 ts spilt bntonne-miles

18. Number spills above 700 tonnes Source: INTERTANKO/ITOPF Number Record low 2008/09 1980s 9.3 1970s 25.2 1990s 7.8 2000s 3.3

19. Incidents attended by ITOPF Most oil spills come from bunkers and other shiptypes than tankers Number of incidents Source: International Tankers Owners Pollution Fund (ITOPF)

20. Estimated total average annual U.S. Oil Spillage Based on data from USCG bbls Storage and consumption include: Non-Tank Vessels (Cargo Ships) (2%), Other vessels (5%), Gas stations and Truck stops, Residential, Aircraft, Inland EPA-Regulated facilities (77%), Coastal facilities (Non-Refining), Inland unknown, Motor vehicles, Others Transport includes: Inland pipelines (80%), Tanker trucks (10%), Railroads (2%), Tank ships (4%), Tank barges (percentages are percentages for the period 1998-2007 for the particular segment. (Percentages in graph is the tank ships percentage of total spillage for he period). Pollution from tankers in the US have been strongly reduced both in absolute terms and as a percentage of total spillage in each period

21. Tanker accidental pollution 1974 – 2010 by cause Based on data from ITOPF Tankers spills of 7 - 700 tonnes 7 - 700 tonnes Tankers spills of > 700 tonnes > 700 tonnes Tankers spills of < 7 tonnes < 7 tonnes 9,938 spills 958 spills 106 spills Operational Groundings Collisions Other/unknown Hull failures Fire & Explosion

22. Human Element

23. INTERTANKO INITIATIVES Tanker Officer Training Standards (TOTS) Benchmarking Lost time indicator Crew/officer retention Databases Confidential accident reporting (CARP)

24. Why TOTS? Increasing tanker incidents Human Element Factors Shortage of Experienced Officer Officer Training Requirements Continuous Improvement (TMSA)

25. TOTS OBJECTIVES Ensure compliance with today’s rules and regulations. Ensure that the team onboard will operate the tanker safe and environmentally aware “Ease compliance” with Officer Matrix Requirements.

26. TOTS ELEMENTS Four Elements of the TOTS 1. Training Record Books: Time in Rank Time with Company 2. Computer Based Assessment (CBA) Time in Rank 3. Company Verification (CBA) Time with Company 4. Ship Specific Practical Simulator Verification/Training Tanker Type Specific Time in Rank Specific

27. TOTS - Approved Maritime Training Centers Major training centres accredited for TOTS simulator training courses: MTC Hamburg ARI in India COMPASS in Manila Italian Maritime Academy Philippines (IMAPhil) All are accredited to operate TOTS element 4 for crude oil tanker, product tanker and chemical tanker simulator training and simulator verification

28. TOTS – Human Element Human Element aspects addressed in TOTS via Crew Resource Management (CRM): Situational awareness Planning & Decision making Communications Teamwork Emotional climate Stress Managing Stress Commercial Organizational Pressures Morale Fatigue

29. TOTS – Additional Info Winner of the 2009 SEATRADE Award for “Investment in People” Approved as a Professional Standard by The Nautical Institute. The Institute of Marine Engineering Science & Technology For E-TOTS and paper version of TOTS, contact publisher Marlin at http://www.marlins.co.uk/tots.htm http://www.marlins.co.uk/tots.htm

30. Lost Time Indicator Frequency Lost Time Indicator Frequency (LTIF) provides members with a useful tool for benchmarking their LTIF and Total Recordable Case Frequency (TRCF) against other INTERTANKO members in a confidential manner Based upon OCIMF Marine Injury Reporting Guidelines. LTIF and TRCF are calculated and sorted from low to high in bar graphs displaying the results so members not only to know whether they are below or above average, but also to know their position vis-à-vis other members (See example)

31. Lost Time Indicator Frequency

32. Crew/officer retention Crew/Officer Retention benchmarking enables members to input their own results and then benchmark their rates against the INTERTANKO fleet on a fully confidential basis Rates formula has been modeled upon the "Abelson adjusted turnover rate” modified by INTERTANKO to ensure that the output is a measure of the company percentage retention rate as opposed to a turnover rate % Retention Rate (RR) = 100 - [ ({S – (UT + BT)} / AE) x 100 ] STotal Number of terminations from what ever cause UT Unavoidable Terminations BT Beneficial Terminations AEThe average number of employees working for the company (12 month rolling period).

33. Crew/officer retention Crew Retention Rate (Average 93.6%) Officer Retention Rate (Average 91.3%)

34. CARP The INTERTANKO Confidential Accident Reporting Platform (CARP) database provides a recognised and respected source of accident information for use by INTERTANKO's Secretariat and its Members. Members input their own incident data in a fully confidential basis whilst allowing INTERTANKO to use the information so that: Lessons can be learned and shared Similar accidents prevented Standardise accident data and categorisation Standardize simple accident analysis, root cause, direct cause and corrective actions

36. SUMMARY Tanker incidents have steadily declined over the years There was a recent slight up-tick in tanker incidents, mainly due to engine failures and human element factors, but that has subsided Oil pollution from tankers has decreased over the years with a dramatic decline within the past decade INTERTANKO has initiated measures to assist its members in improving human element factors and monitoring their progress

37. Thank You JOSEPH ANGELO MANAGING DIRECTOR INTERTANKO www.intertanko.com