1. Latin American Panel 28 October 2008 Cancun, Mexico Peter M. Swift

2. TANKER ISSUES TODAY PIRACY & other security-related concerns INCIDENT ANALYSES HUMAN ELEMENT & “TOTS” COUNCIL AGENDA – Other highlights GLOBAL FINANCIAL CRISIS

3. TANKER ISSUES TODAY PIRACY & ARMED ROBBERY

4. Maritime Security: an Industry Perspective Our first concern is for the safety and welfare of our seafarers, both at sea and in port, while also concerned for the security of our ships and their cargoes !

5. Maritime Security: an Industry Perspective Piracy and Armed Robbery "We must do more and act quickly to fight this terrible scourge.” Ban Ki-moon, UN Secretary General, 10 October 2008 O O O OO O

6. Oil & its strategic importance: World’s largest net oil exporters mbd

7. Maritime Security: an Industry Perspective PIRACY – some general observations National and International interests are frequently at stakeNational and International interests are frequently at stake Ships and ship staff are positively encouraged to adhere to industry and local security guidelinesShips and ship staff are positively encouraged to adhere to industry and local security guidelines Shipping looks to States to provide the necessary protection and supportShipping looks to States to provide the necessary protection and support Shipping companies are generally loathe to arm ships, to engage armed marshals/escorts or to employ private security forcesShipping companies are generally loathe to arm ships, to engage armed marshals/escorts or to employ private security forces Shipping supports and relies on IMB for information and advice (Shipping supports and relies on IMB for information and advice (http://www.icc-ccs.org)

8. PIRACY – Somali coast / Gulf of Aden “The surge in piracy has suddenly turned it into one of the most dangerous passages in the world “

9. Piracy - The Press ! The Times of London, September 11, 2008 Shipping insurance cost soars with piracy surge off Somalia Wall Street Journal 2008 “Pirates have stepped up attacks on merchant vessels in the Gulf of Aden, increasing insurance costs for ship owners and raising the spectre of military intervention in one of the world's most important sea lanes” The Sunday Times, October 5, 2008 Somali pirates vow to stand and fight

10. PIRACY in GoA – some current industry actions In the absence of formal convoys, some ships/companies have established ad-hoc convoys without escorts,In the absence of formal convoys, some ships/companies have established ad-hoc convoys without escorts, Some companies have opted to deviate via the Cape, some not to “offer” their ships for routing via the GoA, some have given the Master discretion as to whether or not to transit the GoA,Some companies have opted to deviate via the Cape, some not to “offer” their ships for routing via the GoA, some have given the Master discretion as to whether or not to transit the GoA, Industry is in contact with States/Capitals and the IMO, and has channelled messages to the UN SecGen via the IMO SecGen,Industry is in contact with States/Capitals and the IMO, and has channelled messages to the UN SecGen via the IMO SecGen, Industry has worked with MEPs in Brussels to develop a resolution in the EU Parliament seeking coordinated EU action to protect seafarers, fishermen and ships in the GoA.Industry has worked with MEPs in Brussels to develop a resolution in the EU Parliament seeking coordinated EU action to protect seafarers, fishermen and ships in the GoA. Inter-industry ad-hoc working group reviewing options, including updating of guidelines.Inter-industry ad-hoc working group reviewing options, including updating of guidelines.

11. PIRACY – Somali coast / Gulf of Aden Message from International Shipping to the IMO, governments and the UN: Commit to strengthen the military assets deployed in the Gulf of Aden and to their coordinated action, Renew UN Security Council resolution 1816 (min 12 months) and, as appropriate and if required, strengthen the text on actions required to repress piracy, Agree to establish a legal jurisdiction to bring to justice criminals under due process.

12. PIRACY in GoA – some general observations Political will is weak, but strengthening Navies/military are stretched – principal foci on Maritime Security Patrol Area and UN World Food Programme Industry questioned as to whether we are doing all that we can – defence measures, contacts with navies, etc. Complex legal issues Will not be solved overnight !! Need to maintain pressure !! & Further evaluate the options !!

13. PIRACY in GoA – other industry actions and initiatives Some owners seeking “extra insurance” cover Many owners linked to the International Bargaining Forum – terms not always clear Regular meetings between industry partners, (and with other stakeholders); including coordinating contacts with media – press releases Need to maintain pressure !! & Further evaluate the options !!

14. TANKER ISSUES TODAY Security-linked concerns in port

15. Security-linked (?) restrictions in port DENIAL OF ACCESS TO SHORE -infringes basic human rights, -degrading (and intimidating) when armed guards are employed, -treatment bordering on the inhumane when mustering during inspections, -demotivating – impacts on recruitment and retention -counterproductive to “security” interests CREW CHANGES PROHIBITED -has negative social impact -affects operational flexibility and costs

16. Security-linked (?) restrictions in port DENIAL OF ACCESS TO SHIPS -prohibits social calls; family, chaplain, welfare organisations, etc -impacts on repairs and maintenance – jeopardising safety and quality -restricts vetting and other inspections with a negative affect on chartering prospects -may restrict storing and bunkering - may add to port congestion when ship is forced off berth -limits operational flexibility and adds additional costs

17. Security-linked (?) restrictions in port VISA & IDENTITY CARD ISSUES -cumbersome/complicated processes (mostly US) -inconsistent application of requirements (e.g. within the Schengen countries) TERMINAL TRANSIT COSTS -f requently excessively high and acting as a deterrent to transits

18. TANKER ISSUES TODAY INCIDENT ANALYSES

19. Tanker incidents 2007 by type Source: INTERTANKO/LMIU/various

20. Tanker incidents 2008 by type Source: INTERTANKO/LMIU/various

21. Tanker incidents and accidental pollution Number Source: INTERTANKO/LMIU/various ‘000 tonnes pollution

22. TANKER ISSUES TODAY HUMAN ELEMENT & “TOTS”

23. HUMAN ELEMENT – INTERTANKO work programme Training TOTS & STCW Revision Officer Attraction Image of the Industry Officer Retention Young Seafarers Focus Group, Internet Options Accommodation Standards Establishing Industry Standards

24. Training - TOTS Approvals The Nautical Institute. The Institute of Marine Engineering Science & Technology. Embraces the Spirit of The Poseidon Challenge ® is approved as a Professional Standard by:

25. Competency & Experience Issues Oil Company Officer Matrix Systems Difficult to Comply with Requirements Contradictory Prohibits Promotion Negative trends in Incidents Competency Training Requirements The “Human Element” Factor Shortage of Experienced Officers

26. The TOTS Objectives Provide a coordinated response by INTERTANKO Provide comfort to oil companies via a structured controlled process; Enhance competency based training; Provide verification of understanding; Ensure compliance with today’s rules & regulations. “Ease compliance” with Officer Matrix Requirements. Ensure that the team onboard will operate the tanker environmentally aware & safe. & TMSA compatible

27. Overview of TOTS TOTS contains Four Elements 1. TOTS: Training Record Books: Time in Rank Time in Company 2. TOTS: Computer Based Assessment (CBA) Time in Rank 3. TOTS: Company Verification (CBA) Time with Company 4. TOTS: Ship Specific Practical Simulator Verification/Training Tanker Type Specific Time in Rank TMSA Part 3, 6, Stage 4 TMSA Part 3, 3, Stage 4, TMSA Part 3, 3A, Stage 2 & 3: TMSA Part 3, 5, Stage 3: TMSA Part 3, 11, Stage 1

28. TANKER ISSUES TODAY COUNCIL AGENDA - Highlights

29. Association affairs Hebei Spirit – status report EU Competition authorities investigation of IACS European Court of Justice: Ruling on interpretation of EU Ship Source Pollution Directive Massachusetts Lawsuit US EPA : Ballast Water discharges Lawsuit

30. TANKER ISSUES TODAY GLOBAL FINANCIAL CRISIS

31. INTERTANKO’s 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. Global Financial Crisis

32. Fleet Development & Seaborne Oil Trade Oil tanker fleet m dwt Source: INTERTANKO, Fearnleys Seaborne oil trade bn tonne miles

33. Credit crunch – liquidity; financing; exposures; covenants & more…. Oil prices ? Steel prices ? Newbuild / scrap prices ? Economic slowdown (or meltdown !) ? Green agenda slowdown ? Markets ? Other ? Global Financial Crisis

34. In 2009 Will tanker freight rates a) remain buoyant during 2009 (on average) b) ease back significantly ? Will the oil price a) stabilise in the USD 70-100 per bbl range b) average below these levels c) average above these levels ? Will HFO Bunker prices a) stabilise at/near current levels b) average below these levels c) average above these levels ? Has tanker shipping seen the worst of the fallout from the global credit crisis or is more still to come a) YES - the worst is mostly over b) NO - this is only the beginning ?

35. THANK YOU For more information, please visit: www.intertanko.com www.poseidonchallenge.com www.shippingfacts.com www.maritimefoundation.com