1. Energy Transportation A Primary Sector in the Global Shipping Market Peter M Swift Managing Director, INTERTANKO

2. Primary energy consumption by fuel Billion tonnes oil equivalents

3. The World still needs oil and oil tankers Peter M Swift bn tonne-miles

4. World News World Oil Consumption 4.0 billion ts per year Transported by sea 2.6 billion ts per year > 60% transported by sea

5. Shipping is cost effective Gasoline price at the pump US Dollars per litre

6. Investment in new tankers Some $ 327 billion invested since 2000 with the result that 96% of tanker fleet double hulled in 2010* *Assuming only DB/DS tankers continue to trade beyond 2010, some SH tanker will most probably continue until the age of 25 years old

7. Watched by: Regulators Politicians Public Licences to trade rigorously applied by: Flag states Classification Societies Insurers Charterers Monitored by: Coastal and Port states Tanker Industry is accustomed to being under the spotlight

8. Accidental oil pollution into the sea and tanker trade Source: INTERTANKO/ITOPF/Fearnleys 1000 ts spilt Billion tonne-miles Record low pollution in 2008: 2,000 ts

9. Oil demand DOWN in 2009

10. Tanker deliveries, removals, max phase-out All tankers > 25,000 dwt m dwt Assumed balanced market end 2007

11. Single Hulls trading beyond 2010? AustraliaNo ChinaNo EU No Mexico No Romania No S Korea *No Philippines *No UAE*No * no official note to IMO Bahamas Yes Barbados Yes Liberia Yes Marshall Isl.Yes Panama FlagYes JapanYes Singapore Yes India Yes Hong Kong * Yes *20 years if new on register Flag/Port States permitting SH trading / port entry beyond MARPOL 2010 deadline – until 25 years of age or 2015, whichever comes first United States: OPA90 – 2010, except to LOOP & lightering areas until 2015

12. SOME of the key challenges for the Tanker industry Piracy Criminalisation of seafarers Maintaining safety and quality in market downturn

13. Malacca Straits / South China Seas Nigeria / Gulf of Guinea Somalia – Gulf of Aden / W Indian Ocean Piracy

14. Piracy – Somalia

16. Piracy - Somalia The International Response Naval Units deployed – EUNAVFOR, CTF, NATO, National Navies MSCHOA Coordination Centre established – (EU) Maritime Security Centre (Horn of Africa) UN Security Council Resolutions IMO - Engaged via UN and Maritime Safety Committee International Media attention – Faina, Sirius Star, Maersk Alabama International political agenda – US, Europe, Asia, Africa: Donor / Aid programmes being assembled

17. Piracy - Somalia Guidance to Industry Generic: IMO Circular 623 (Rev 3) Region Specific: UN Contact Group: Best Management Practices OCIMF/INTERTANKO/Industry Guide: Piracy - The East Africa/Somalia Situation Practical Measures to Avoid, Deter or Delay Piracy Attacks

18. Guidance for Gulf of Aden / Somalia Pre-transit: Assess Risk Plan self-defensive measures Register with MSCHOA During transit: IF appropriate, join Group Transit for Gulf of Aden Stay 600 nm off coast of Somalia Stay alert Report to UKMTO Follow “best practices” Piracy - Somalia

19. Criminalisation of the Seafarer - and unfair treatment Criminalisation legislation - “Find the guilty” culture rather than a thorough investigation of the cause Failure to adhere to “IMO/ILO Guidelines on the Fair Treatment of Seafarers in the Event of a Maritime Accident”

20. Maintaining safety and quality in market downturn Commitment to maintaining and continuously improving: 1.Ship Maintenance 2.Recruitment and Training 3.Environmental Performance

21. Tankers’ Environmental Challenges Life cycle Building to Decommissioning / recycling ODS = Ozone Depleting Substances (cooling medium) NOx, SOx, PM Annex VI Sewage Garbage Waste Management Accidental oil pollution Ballast water Toxic Antifouling and Biofouling CO2/GHG emission VOC = Volatile Organic Compounds Ship Strikes with Cetaceans Marine Noise Pollution

22. Thank you 谢谢大家 For more information, please visit: www.intertanko.com www.poseidonchallenge.com www.shippingfacts.com www.maritimefoundation.com