Bureau VeritasInternational General Committee

Oil tankers under the Oil tankers under the spotlightspotlight

Paris, 26 June 2008

Nicholas FistesChairman of INTERTANKO

                     

                                    

Oil tanker transportation - delivering energy for today’s energy-hungry world

World Oil Consumption 3.8 billion ts

Transported by sea 2.4 billion ts

> 60% transported by sea

Tanker Industry 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

Accidental Pollution

Source: ITOPF/Fearnleys

10001000ts spiltts spilt

bn bn tonne-mtonne-m

0.0

0.7

1.4

2.1

2.8

3.5

1970s 1980s 1990s PR00s

0

26

52

78

104

130

1000 ts spilt

'0000 bntonne-miles

- 63% -6% -78%

-45% -33% -82%-45% -33% -82%Reduction per tonne milesReduction per tonne miles

- pollution down - world trade up

Tanker industry - a record of continuous improvement

Tankers more efficient than ever.

One litre of fuel on a modern VLCC moves one tonne of cargo 2,500 kilometres.

More than twice as far as 20 years ago.

Investment in new tankers

More than USD 500 billion invested since 2000 with the result that >85% of tanker fleet double hulled in 2010

622

5159

67 68 73 76 79 82 85

9478

4941

33 32 27 24 21 18 15

0

20

40

60

80

100

19

91

19

97

En

d 0

2

En

d 0

3

En

d 0

4

En

d 0

5

En

d 0

6

En

d 0

7

En

d 0

8

En

d 0

9

En

d 1

0

SH/DB/DS

DH

% dwt share

Phase-out according to regulations

(max 25 y.o./2015).

max 25

Proud of performance, but not complacent

The tanker industry is proud of its performance …

but it is not complacent as it faces the challenges…

as it strives towards zero fatalities, zero pollution, zero detentions

Tanker incidents by type and accidental pollution

1000 ts oil pollutionNo. incidents

0

200

400

600

800

1000

78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07

0

100

200

300

400

500

600

700

War

Hull & Machinery

Fire/Expl

Grounded

Coll/Contact

Misc.

Pollution - bars

Source: INTERTANKO/LMIU/ITOPF/various

Investment in people

Respected as an asset, not treated as a cost !

Investment in people

• Cadet berths

• Onboard training facilities

• INTERTANKO’s Human Element in Shipping Committee

• Training standards and criteria

Tanker Officer Training Standards (TOTS)

– providing the tanker industry with a clear standard of tanker officer competence

• Eases compliance with officer matrix requirements• Enhances tanker officers’ understanding• Bridges the experience gap• Provides core competency training and verification• Helps reduce human factor element in accidents

INTERTANKO

• TOTS establishes a new industry standard of training for Tanker Officers … assesses the competence acquired from onboard and shore training … ensures tanker officers’ competence for rank-specific shipboard operations as well as for specific tanker types (crude, product, chemical) and company-specific operating systems.

• TOTS provides a viable alternative to “Time in Rank” and “Time with Company” measures and eases the problems that tanker owners encounter with the different “Officer Matrix” requirements of certain charterers.

• TOTS also contributes to industry’s efforts aimed at reducing the human factor element in shipping incidents.

TOTS: The Objective

The image ?

Perception or Reality

Criminalisation

European Court of Justice

EU Ship Source Pollution Directive

Fair treatment of seafarers

• Shore leave denied• Crew changes prohibited• Access to medical treatment

restricted• Excessive charges for terminal

transits • Inadequate equipment

Too many inspections !

Adding unnecessarily to

fatigue and stress

- Failure to share information frequently results in inspections overlapping; and

- improper targeting - frequently hitting the soft option

both create their own problems

Tripartite talks

• Class – IACS Chairman and some Council members• Shipbuilders – from China, Europe, Japan, Korea• Ship owners – Round Table of int’l shipping assoc’ns (BIMCO, ICS, Intercargo, Intertanko)

Working together for- Continuous improvement- Sharing best practice- Formulating practical measures for self-regulation

- Recycling- Cadet accomodation- GHG reductions

Tanker Industry’s Environmental Agenda - Highlights

• Anti-fouling Systems • Ballast Water Management • Biofouling• Ship Recycling• Port Reception Facilities• Waste Management• Marine Noise Pollution• Whale Strikes • Spill Prevention and Response Planning• VOC reductions• Atmospheric Pollution - Revision of MARPOL Annex VI

• Green House Gas Emissions

Action on key environmental challenges

• Established international Forum to address inadequacies of Reception Facilities

• Developed interim policy on Responsible Recycling ahead of proposed Convention

• Implemented Antifouling Convention ahead of formal entry into force

• Trialled procedures to develop solutions to meet new Ballast Water Management requirements; also now addressing biofouling issues

• Developed procedures to limit Volatile Organic Compound (VOC) emissions from cargo tanks

• Produced guidelines on minimisation of Ship Generated Waste

• Proposed solutions to reduce globally harmful Exhaust Gas Emissions for existing and new ships

• Actively engaged in developing measures to reduce Green House Gas Emissions (principally CO2) from today’s and tomorrow’s ships

GHG emissions

• Climate change not questioned• Trade growth => fleet growth => GHG

increase (CO2)• Larger, more efficient ships = less GHG /

tonne-mile• Main engine specific fuel consumption 20%

lower than 10 years ago• One high priority - search for efficiency gains• Shipping is part of the solution rather than

being the problem itself

Greenhouse gasesGreenhouse gases

Short term measures

• Improvement in fuel consumption• Energy efficient ship design, hull/prop polishing• Onshore power supply• Use of wind power• Rating performance of ships and operators• Limitations on leakage rates of refrigerants• Vessel speed reductions• Measures to improve traffic control and cargo

handling

Greenhouse gasesGreenhouse gases

Long Term Measures

• Technical measures for ship design

• Use of alternative fuels

• Mandatory ship design index for new ships

• Emissions trading scheme

• Mandatory CO2 element in port infrastructure charging

Thank you Merci beaucoup

For more information, please visit:www.intertanko.com

www.poseidonchallenge.comwww.shippingfacts.com

www.maritimefoundation.com