partnerships and relations between charterers and owners in the current economic landscape

Partnerships and Relations between Charterers and Owners in the current economic landscape

Tim Wilkins

Regional Manager Asia-Pacific

Environmental Manager

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OCIMF Pre-Conference Seminar

Shipping China Energy 2009

Shanghai

Maintaining Trust and Transparency in Turbulent Times: The continued need for charterer

and owner partnerships in a market downturn

国际油轮船东协会OCIMF Seminar, Shanghai April 2009

...20 minutes...

1. INTERTANKO

2. Turbulent times...positive trends• Safety and environmental performance

3. Trust and Transparency


International Association of Independent Tanker Owners

A non-governmental organization established in 1970 to speak authoritatively and proactively on behalf of tanker operators at

international, regional, national and local level

• Representing oil and chemical tanker owners

290 Members2,950+ tankers80% of independent tanker fleet85% of chemical tanker fleet330 Associate Members

1. INTERTANKO


1. INTERTANKO

MISSION• To provide leadership to the Tanker Industry in serving the world with safe,

environmentally sound and efficient seaborne transportation of oil, gas and chemical products.

VISION FOR THE TANKER INDUSTRY• A responsible, sustainable, respected Tanker Industry, committed to

continuous improvement and constructively influencing its future.

ONE OF THE ASSOCIATION’S PRIMARY GOALS• Lead the continuous improvement of the Tanker Industry’s performance in

striving to achieve the goals of:

Zero fatalities

Zero pollution

Zero detentions


Maintaining Trust and Transparency in Turbulent Times:

The continued need for charterer and owner partnerships in a market downturn

• Turbulent Times?

But positive trends in safety and environmental protection to be maintained...


Accidental oil pollution into the sea and tanker trade

Source: INTERTANKO/ITOPF/Fearnleys

1000ts spilt

Billion tonne-miles

Record low pollution in 2008:

2,000 ts

0

100

200

300

400

500

600

19701972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 20080

2,000

4,000

6,000

8,000

10,000

12,000

14,000Trade in billion Tonne-miles (Fearnleys)

'000 tonnes spilt in tanker accidents (ITOPF)

2. Turbulent times...positive trends


Tanker incidents and accidental oil pollutionNumber incidents

Based on data from LMIU, ITOPF and others

0

210

420

630

840

10507

87

98

08

18

28

38

48

58

68

78

88

99

09

19

29

39

49

59

69

79

89

90

00

10

20

30

40

50

60

70

8

0

120

240

360

480

600

Misc

Security

Fire/Expl

Hull & Machinery

Grounded

Coll/Contact

Oil pollution

2009 is a projection based on 68 days

2. Turbulent times...positive trends


charterer and owner partnerships in a market downturn

3.1 Trust• TMSA - benchmarking

• Officer and crew competence

3.2 Transparency• Information sharing

• Incident reporting

3. Trust and Transparency


• TMSA and TMSA 2 Gap Analysis85% of INTERTANKO’S comments were taken into account.

http://www.intertanko.com/templates/intertanko/issue.aspx?id=44647

• TMSA 2 Benchmarking databasehttp://www.intertanko.com/templates/TMSA2.aspx?id=44407

TMSA Benchmarking

3.1 Trust – TMSA


• Officer Retention Benchmarking Building of the officer retention benchmarking database is underway and a test

version of this database will be available for review in 2009

• Crew Retention Benchmarking Building of the crew retention benchmarking database is underway and a test

version of this database will be available in 2009.

TMSA Benchmarking

3.1 Trust – TMSA


Oil Company Response to Human Error Incidents

• Currently STCW does not supply the level of comfort required• Tanker Endorsements do not supply the level of comfort required

Major Casualties within the Tanker Industry confirm the exposure to risk when inappropriate levels of familiarity, expertise & experience are held within the ship-board management team. (TOTAL)

Officer Matrix Requirements (“Time with Company” and “Time in Rank”)

• TOTAL• KOCH• DOW• Conoco Phillips • Chevron• Shell

3.1 Trust – Officer and crew competence


Tanker Officer Training Standards (TOTS)

Summary

• INTERTANKO response• Enhance competency based training• Provide verification of understanding • Ensure compliance with today’s rules and regulations• “Ease compliance” with Officer Matrix Requirements• Ensure that the team onboard will operate the tanker

environmentally aware and safe• Provide comfort to Oil/Cos/Chrt’s via a structured and controlled

process

3.1 Trust – Officer and crew competence


What• Terminal Vetting

– Tankers are vetted but are sometimes asked to make fast to poor quality berths

– The vetting process works for ships, so why not for terminals?

Why• enhance safety at the terminals

• improve member efficiency by influencing terminals to ‘fix’ problems

• maintain industry safety record

Terminal Safety - Terminal Vetting Database

3.2 Transparency – Information sharing



1 – Poor Worse than average in all areas, needs a lot of improvement

2 – Below Average Worse than average in some areas, could use some improvements

3 – Average Fully adequate

4 – Above Average Better than average in some regards

5 – Excellent Of a very high quality in all regards


How it’s used:

Level 1: Vessel Manager can review terminals prior to vessel’s call.

Level 2: Owners are encouraged to discuss “poor reports”with the Terminal.

Level 3: The INTERTANKO Vetting Committee will assist in cases where the Terminal does not respond or responds poorly to the owner’s requests and will be tasked to follow-up with any terminals not responding to Owner’s observations.




• To date we have received over 7000 reports (100 hundred companies)

• Induced at least three terminals to make extensive improvements

• Started constructive dialogue with many others

• Reached agreement to work in partnership with BP

• Received dozens of enquiries from terminals around the world requesting feedback on their terminals in order for them to review and improve (if necessary!)


INTERTANKO Terminal Satisfaction Sheet

• INTERTANKO has now made available a "Terminal Satisfaction Sheet"

• This enables the ship and the company to acquire useful feedback from the terminal regarding the ships performance prior to the ships departure. Primarily pertaining to the safety aspects of the vessel with a focus on continual improvement.

• Another simple one page feedback form!

Terminal Vetting



• Confidential Information Reporting Platform: a standard incident reporting format that may be used to enhance the level of information and feedback we receive within INTERTANKO with regards to accidents and incidents, root cause analysis and the categorisation system for the incidents and accidents themselves.

• Potential to become an industry standard.

• Common Database for use and population by members

• Shared information on root cause

• [email protected]

3.2 Transparency – Incident reporting


• Tanker operators reporting to charterers on incidents and root cause analysis

• Reciprocal transparency requested in charterers use of ‘technical hold’ situations– Allow for corrective action to be taken swiftly by operator

• Partnership between tanker operators and charterers – incident reporting and information sharing - ITOSF



...20 minutes?

1. INTERTANKO

2. Turbulent times...positive trends• Safety and environmental performance

3. Trust and Transparency• TMSA – benchmarking• Officer and crew competence• Information sharing• Incident reporting


thank you

For more information please visit www.intertanko.com

[email protected]

partnerships and relations between charterers and owners in the current economic landscape

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