1. INTERCARGO International Association of Dry Cargo Shipowners Bulk Carrier Benchmarking Mr Rob Lomas 13 October 2006

2. INTERCARGO Dry Bulk Association Member of the Round Table Associate Member - Intermanger Represents about 800 bulkers and increased membership (130 full and associate) Common challenges – quality, safety, responses to regulation

3. INTERCARGO Benchmarking ethos Should we publish ? How do stakeholders perceive us? Stronger demands for transparency Adequacy of existing information sources – data presentation issues; margin of error Portraying our members as higher quality Targeting becoming more important

4. INTERCARGO Port State Control analysis of one sector Extensive statistical analysis – c 6000 bulkers Analysis of flag, class, owner “Deficiencies per inspection” correlates with ad-hoc quality definitions

5. INTERCARGO PSC BENCHMARKING DOCUMENT A : Statistical information (10,000 dwt +) B : PSC Data (Paris / Tokyo / US CG) C : Benchmarking Data D : Further information / recommendations Intercargo Executive Committee meeting on 9 October 2006 – concerns with corruption and uniformity of inspection

6. INTERCARGO THE FINDINGS Statistics Fewer dry bulk vessels than thought on “at least one inspection in Paris/Tokyo MoU / US CG areas in 3 years” basis 6000 vessels; 1200 companies; growth in “Intermanager” controlled bulkers

7. INTERCARGO FINDINGS – PSC Detentions - main Fire fighting : 1 st : 598 ISM / Certificates : 2 nd : 539 Lifeboats : 3 rd : 425 10 other categories – note, serious structural - 149 Many detentions immediately pre-post vessel sale FINDINGS Owners – casualties Context – declining casualties :- 2005 – 6 losses / 1 structural / 0.974 per 100 ships 2004 – 5 / 1 / 1.154 2003 – 4 / 0 / 1.389 …. 1996 – 14 losses

8. INTERCARGO Owners Benchmarking Matrix Deficiencies per inspection (median : 2.44; average owner scored 3.57; Intercargo entered vessel – 2.11) N 90-100 (worst) 7.2 to 41 80-895.25-7.69 B- 70-794.03-5.23 60-693.14-4 50-592.45-3.12 B+ 40-491.94-2.44 30-391.51-1.93 20-291.13-1.5 10-190.62-1.12 1-9 (best)0-0.61 Large “Intermanager”-style third party shipmanagers perform well on quality

9. INTERCARGO Benchmarking Class 2.93 deficiencies per inspection with IACS entered ships; 8.71 for non IACS Intercargo only approves IACS Benchmarking Flag Can only recognise historical performance (2003-2005) Credit for improvements – especially Cyprus Flags outperforming market share included – Panama (+2.22%); Hong Kong (4.82%); Liberia (0.77%); Bahamas (2.25%)

10. INTERCARGO Benchmarking – age Vessels in 22-30 year old range comprise 29% of the fleet but had 53% of the detentions There are good, older ships but PSC inspectors target older vessels.

11. INTERCARGO Benchmarking – Human Element It is not only the BAD owners which have collisions and groundings but also the GOOD Collisions 2005 : “A” and B+ managers had 61% of the collisions but comprised 39% of total. Groundings 2005 : ditto 54% / 39 % Inference that training requires further attention

12. INTERCARGO CONCLUSION … FURTHER ACTION ISM failings to be corrected Owners should divert attention to detail – certification, minor fire / lifeboat issues Stakeholder involvement essential Human Element – the challenge for the good owners Target corruption

13. INTERCARGO INTERNATIONAL ASSOCIATION OF DRY CARGO SHIPOWNERS Thank you for your attention www.intercargo.org info@intercargo.org www.shippingfacts.org