1. CHINA OIL TRANSPORTATION SAFETY FORUM The Human Element and Oil Shipping Safety Beijing 20 July 2010 Peter M Swift, MD INTERTANKO

2. The Human Element and Oil Shipping Safety Introduction – INTERTANKO Introduction – Oil Shipping Oil Shipping – Safety Human Element A Happy ship is a Safer ship – Design – Operation – Seafarer Concerns

3. INTERTANKO Today 260 + members operating ca. 3,100 ships > 75% of the independent oil tanker fleet and > 85% of the chemical carrier fleet 300 + associate members: in oil and chemical tanker related businesses [With strict membership criteria] 15 Committees – 5 Regional Panels Principal Offices – London and Oslo Representative Offices in US, Asia and Brussels Observer Status at IMO, IOPC, OECD and UNCTAD International Association of Independent Tanker Owners

4. INTERTANKO’s Strategic Objectives To develop and promote best practices in all sectors of the tanker industry, with owners and operators setting the example. To be a positive and proactive influence with key stakeholders, developing policies and positions, harmonising a united industry voice, and engaging with policy and decision makers. To profile and promote the tanker industry, communicating its role, strategic importance and social value. To provide key services to Members, with customised advice, assistance and access to information, and enabling contact and communication between Members and with other stakeholders.

5. The world needs oil and oil tanker transportation World Oil Consumption 3.8 billion ts Transported by sea 2.4 billion ts > 60% transported by sea

6. Oil shipping is safe Based on ITOPF/Fearnleys 1000 ts spilt 1000 bn tonne miles trade Accidental oil pollution from tankers

7. Oil shipping is reliable and environmentally responsible With Goals aligned to those of the IMO

8. Oil shipping is cost effective USD per barrel Oil price and freight rate – real and nominal

9. Oil shipping is energy efficient This car, weighing one tonne, uses 1 litre of fuel to move 20 kms This oil tanker uses 1 litre of fuel to move one tonne of cargo 2,500 kms –more than twice as far as 20 years ago

10. BUT Oil shipping is not complacent – and is accustomed to being under the spotlight Watched by: Regulators Politicians Public Licences to trade rigorously applied by: Flag states Classification Societies Insurers Charterers Monitored by: Coastal and Port states

11. Oil Shipping Safety Key components for safe oil shipping: Practical legislation and regulation - implemented on a consistent basis worldwide Well designed, constructed and maintained ships Owners and management committed to quality and adherence to industry best practices and standards Competent crews – properly trained, experienced and motivated Underpinned by sound freight markets

12. Tanker Incidents and accidental pollution Number incidents Based on data from LMIU, ITOPF + others

13. Tanker incidents in 2009 Based on data from LMIU + others The Human Element is a key component

14. HUMAN ELEMENT Competent seafarers: Critical success factors Effective programmes to: Recruit Train and build experience Retain

15. Seafarer recruitment Global shortage of seafarers has encouraged programmes* to: Attract young people to the industry Heighten awareness of the maritime world Provide easy access to information about the shipping industry, career opportunities, training and education facilities Highlight seafaring as a “maritime career” with follow-on life time prospects ashore * Many programmes have an EU focus, but the IMO has also initiated a global “Go To Sea” campaign

16. Providing information on maritime industries Maritime Industry Knowledge Centre Objectives: To improve the image of shipping To heighten awareness of international shipping To attract young people both to the seafaring professions and to careers onshore www.maritimeindustryfoundation.com

17. Seafarer training Ideally training establishments should provide appropriate courses, have competent staff and modern facilities, and be externally audited In the tanker world the industry has established an additional scheme – Tanker Office Training Standards – addressing, assessing and recording the necessary skills and experience “At sea” training should be incentivised with the provision and utilisation of cadet berths

18. Seafarer retention Programmes should: make life at sea as close as possible to life at home - with access to the social media, recreation facilities, etc. pay more attention to the standards of crew accommodation do more to address the working environment and practices eliminate the concerns of seafarers – including the negative factors, such as the threats from Piracy and unwarranted criminalisation after a genuine accident

19. “A happy ship makes for a safer ship” Improving the design (1) Areas for improved cooperation between Owners, Builders and Designers: Accommodation and habitability standards Owners too readily accept the “norms” of shipbuilders Personal communications for crews Providing crews with access to (cost-effective) internet and private communication Better shipboard training facilities To facilitate development and career enhancement ? Cadet berths and training spaces could be exempted from Tonnage Measurement ?

20. “A happy ship makes for a safer ship” Improving the design (2) Areas for improved cooperation between Owners, Builders and Designers: Equipment & systems sometimes NOT Fit For Purpose Such as: Waste management systems*; Oily water separators / oil discharge measurement equipment ; Incinerators; Lifeboats; Loading calculators; Cranes and more (* while not forgetting the need to ensure adequate shoreside reception facilities) Operating Manuals sometimes NOT Fit For Purpose Language issues; Installation rather than instruction manuals; Incomplete in content; Inconsistent in functional scope; But also sometimes simply not available

21. “A happy ship makes for a safer ship” Improving operational practices (1) Too many inspections ! - Adding unnecessarily to fatigue and stress Ships and seafarers would benefit from : - better targeting of inspections - greater uniformity and harmonisation Better information on properties and characteristics of cargoes and bunker fuels Availability of Material Safety Data Sheets (MSDS) to be improved Areas for improvement:

22. “A happy ship makes for a safer ship” Improving operational practices (2) The Tsunami of Paperwork May be eased by employing ship’s clerk ? Excessive pressure on Masters and crews from Charterers, Terminal Operators and Owners Benefits from better dialogue with other stakeholders Regulation without recognition of the impact on seafarers More consideration to be given to the ramifications of new regulations and legislation at IMO and elsewhere – e.g. ballast water, multi-fuels, emission abatement technologies, etc. The seafarer has to make it work - or risk being criminalised if it doesn’t ! Areas for improvement:

23. “A happy ship makes for a safer ship” Addressing seafarers’ concerns The unwarranted criminalisation of seafarers too often: - is based on “Find the guilty” culture rather than “Find the cause” - involves failure to adhere to IMO/ILO Fair Treatment Guidelines in the event of a Maritime Accident - discourages comprehensive accident investigations, information sharing and near-miss reporting and is therefore detrimental to safety

24. “A happy ship makes for a safer ship” Addressing seafarers’ concerns Actions by industry on criminalisation include: actively lobbying governments to adopt and implement the IMO/ILO Guidelines challenging legislation that is not consistent with international treaty obligations (such as MARPOL, UNCLOS) and/or introduces criminalisation for accidents and simple negligence – e.g. the EU Ship Source Pollution Directive speaking out in cases of unjustified detentions and criminal proceedings, such as Prestige, Hebei Spirit, Full City and more

25. “A happy ship makes for a safer ship” Addressing seafarers’ concerns The Fair Treatment concerns of seafarers go beyond unwarranted criminalisation Crews are regularly treated as second class citizens Examples include: Shore leave denied Crew changes prohibited Access to medical treatment restricted Excessive charges for terminal transits

26. “A happy ship makes for a safer ship” Addressing seafarers’ concerns Malacca Straits / South China sea Nigeria / Gulf of Guinea South America Somalia – Gulf of Aden / W Indian Ocean Practical Measures to Avoid, Deter or Delay Piracy Attacks “Our paramount concern is the safety of our seafarers” Governments providing much appreciated support Owners providing extensive guidance Ships adopting best practices But problems and concerns remain Will future designs provide better protection ? Protection against Piracy and Armed Robbery

27. 谢谢大家 Thank you For more information, please visit: www.intertanko.com www.maritimefoundation.com www.shippingfacts.com www.poseidonchallenge.com London, Oslo. Washington, Singapore and Brussels