1. Tanker Market Outlook 2005 Key Concerns Facing the Tanker Industry - An INTERTANKO Perspective By John C. Fawcett-Ellis General Counsel & Regional Manager Asia-Pacific Singapore, 27 September 2005

2. - representing responsible oil and chemical tanker owners worldwide - promoting Safer Ships, Cleaner Seas and Free Competition

3. -strict membership criteria based on quality and performance

4. The strength of INTERTANKO  230 members – operating some 2,200 tankers  280 associate members  26 staff lead by MD – Dr P Swift  Oslo, London, S’pore and Washington DC  Chairman – Mr S Van Dyck  14 committees  4 regional panel

5. INTERTANKO’s vision for the tanker industry: “ A responsible, sustainable and respected industry able to influence its own destiny.”

6. Key industry goals  Regulatory environment which supports safe shipping operations, environmental protection and adherence to internationally adopted standards and procedures  Properly considered international regulation of shipping  Global regulation for a global industry, adopted and implemented uniformly

7. AGENDA  Maintaining Supremacy of IMO & International Maritime Law  Common Structural Rules & Goal Based Standards  Criminalisation of Seafarers  Challenges to Industry Governance Structures  Other: People issues Piracy Ship Recycling Environmental Challenges Competition Rules Security Oil Pollution Liability & Compensation

8. Maintaining Supremacy of IMO & International Maritime Law Against the challenges of Local and Regional Legislation

9. Increasing politicization of regulation Increasing politicization of regulation Examples:  Phase out of single hull tankers  West European Particularly Sensitive Sea Area  Moves to open up CLC/Fund Convention and link with substandard shipping  Penal sanctions adopted by EU, criminalising accidental pollution Why?  Coastal state interests versus flag states, and reduced influence of maritime constituency  Power of EU Commission

10. Commission (The executive) THE EUROPEAN INSTITUTIONS & the power plays European Parliament (Direct election) Council (Member States) EMSA

11. HOW IT WAS: Examples of positive regulatory developments (the “IMO spirit”)  ISM Code and STCW (training) Outcomes broadly based on technical merits of arguments put forward. Industry viewpoint understood, if not always accepted.

12. HOW IT IS: The Challenges Today  More political drivers and less consideration of the technical, operational, and commercial interests  More unworkable, inconsistent and illogical regulation and less consideration of the practical aspects  More pressure for local / regional regulation and less willingness to adopt and apply international regulation

13. Maintaining Supremacy of IMO & International Maritime Law What are the threats?  15 Years Ago the United States (OPA90)  Today the European Union  Politics post Erika and Prestige  Conflict with International legislation (UNCLOS, MARPOL)  Criminalisation  EU Commission proposals for EU Common Position at IMO

14. Meeting Society’s expectations ( “ our licence to trade”) - including the environmental challenges

15. The world expects us to have 0 accidents. Even though 99.9997% of oil is delivered safely It takes only one accident to change the industry

16. Tanker incidents: 1978-03 Source: LMIS, Informa, press, INTERTANKO Number

17. Development of tanker oil spills Source: ITOPF. Number of spills above 700 tonnes.

18. Accidental oil pollution from tankers and tanker trade Source: ITOPF, Fearnleys 1000 bn tm m ts spilt

19.  Meeting Society’s expectations ( “ our licence to trade”)  - including the environmental challenges  Maintaining International versus Regional and Local legislation  Overhauling the governance structure of the industry:  - Class, Flag, Port State Control  Reversing the trend to increased criminalisation  Ensuring the commitment of all stakeholders to continuous improvement Key issues for Tanker Owners

20. Designers Shipbuilders Equipment Suppliers Class Charterers Operator/Manager Financiers / Guarantors Owner Commitment to Continuous Improvement by all stakeholders in the maritime businesses Cargo Owners Brokers P&IHull insurers Ports & Terminals Coastal States Waterways authorities Flag states Bunker suppliers Pilots Tug operators Labour providers Salvers Repairers Paint Suppliers Agents Spill Response Ship Breakers

21. Tanker Event 2006 Singapore 29-31 March 2005 The Poseidon Challenge

22. INTERTANKO Publications  Guide to bunkering of ships for the purposes of Annex VI to MARPOL  A Guide for correct entries in the Oil Record Book  A Guide to Tanker Charters  Tanker Bills of Lading - A Practical Guide  Guiding Principles to Emergency Management and Crisis Communications

23. Thank you www.intertanko.com