INTERCARGO International Association of Dry Cargo Shipowners Joint

INTERCARGO International Association of Dry Cargo Shipowners Joint Technical Seminar Bulk Carrier Casualties 22 nd November, 2006 by Roger Holt Secretary General 1

INTERCARGO Bulk Carrier casualties and incidents 2

INTERCARGO Agenda: - Casualty Data - Casualty Report for 2005 - Casualty expectations for 2006 - IACS Rules 3

INTERCARGO Bulk Carrier Casualty Data 4

Losses by Cause INTERCARGO Cause of incident` Losses (1996 -2005) Structural 13 Contact Grounding 27 Machinery Fire/Explosion 12 Flooding 13 Contact Collision 16 Disappearance / Unknown 3 Machinery Failure 4 Cargo Loading / Unloading 3 Contact Object 1 Cargo Fire / Explosion 1 Cargo Capsize / Cargo Shift 2 Others 1 TOTAL 96 • 96 bulk carriers over 10, 000 dwt have been identified as lost, or on average 9. 6 ships per year • 372 crewmembers have lost their lives, or on average 37 deaths per year • 21. 11 years was the average of the bulk carriers lost • 4. 0 m dwt has been lost, or on average 402, 514 5 dwt per year

INTERCARGO Losses by Bulk Carrier Type Capesize (7 Losses) Panamax (16 Losses) Handysize (61 Losses) Handymax (12 Losses) 6

Number of Ship Losses (1996 -2005) INTERCARGO Losses by Age 40 35 30 25 20 15 10 5 0 0 -4 5 -9. 10 -14. 15 -19. 20 -24. Age Distribution (Years) 25+ 7

co ke Fe rti lis Fo er re st p ro du ct s G ra Iro in n an In b d al st la ee st l p ro du ct s Iro n or e M in er al St on e O th er s ic al he m ry C nd en t em a oa l D C C Number of Losses (1996 -2005) INTERCARGO Losses by Cargo Carried 30 25 20 15 10 5 0 Cargo 8

INTERCARGO Losses Caused by Structural Failure 20 No. of Losses 18 16 14 12 10 8 6 4 2 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Year Number of losses by structural failure Total number of losses 9

Loss of Total Tonnage DWT INTERCARGO Losses by DWT 800, 000 700, 000 600, 000 500, 000 400, 000 300, 000 200, 000 100, 000 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Year 10

Average Age of Ships lost INTERCARGO Losses by Average Age 30 25 20 15 10 5 0 1996 1997 1998 1999 2000 2001 Year 2002 2003 2004 2005 11

Crew Lost INTERCARGO Loss of Life 100 90 80 70 60 50 40 30 20 10 0 80 87 64 50 43 23 4 13 8 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Year 12

INTERCARGO Ships and Lives Lost 13

Flag States INTERCARGO Flag State performance Number of total losses during 1996 -2005 Fleet of Bulk Carriers in 2005 Belize 3 12 Cambodia 2 32 China 5 328 Cyprus 15 368 D. P. R. Korea 1 13 Georgia 1 23 Greece 3 262 Hong Kong, China 2 501 Indonesia 2 18 Japan 1 48 Lebanon 1 4 Liberia 4 341 Malaysia 2 20 Malta 13 446 Marshall Islands 1 141 Panama 18 1618 R. Korea 3 125 Russia 1 46 Singapore 1 175 10 115 Taiwan, China 1 36 Turkey 6 116 St Vincent & Grenadines 14

INTERCARGO Annual Average Ships Lost 15

INTERCARGO Annual Average Lives Lost 16

INTERCARGO Annual Average DWT Lost 17

INTERCARGO Annual Age of Ships Lost 18

INTERCARGO Casualty Report for 2005 19

INTERCARGO Analysis of total losses in 2005 • 6 bulk carriers over 10, 000 dwt have been identified as total losses for the year 2005 out of a growing world dry bulk fleet (over 10, 000 dwt) estimated as 6, 071 ships. • 8 crew members lost their lives. • 6 bulk carriers lost with an average of 24. 00 years, compared to an average of 15. 20 years for the world bulk carrier fleet over 10, 000 dwt. 20

INTERCARGO • 0. 16 million dwt lost out of a total of 340. 50 million dwt for the world bulk carrier fleet over 10, 000 dwt, accounting for 0. 04%. • Concentration of casualties once again occurs in the smaller sizes of bulk carriers. • Two other serious incidents occurred, but contrary to press reports given at the time of the incidents, these bulk carriers will be repaired and returned to service. These vessels were the Hua Ling (IMO No. 7392878) and the 21 Vertigo (IMO No. 8417601).

INTERCARGO No. of incidents Bulk carrier type Cause 0 Capesize (+ 80, 000 dwt) 0 Panamax (50 -79, 999 dwt) 1 Handymax (35 -49, 999 dwt) Collision 5 Handysize (10 -34, 999 dwt) Three groundings, one collision and one hull failure (structural failure) 22

INTERCARGO Geographical overview of the losses m/v Everise Glory m/v Starluck m/v Golden Dragon m/v Kiperousa m/v Aurelia m/v Bright Sun 23

INTERCARGO Aurelia, bulk carrier IMO No. : 7909889 Date of Casualty: 2 Feb 2005 Gross Tonnage: 22046 Deadweight: 34170 Built: 1980 Flag: Malta Class: Russia Voyage to/from: From Peru to Japan Location of incident: Near Japan's Chichijima Island Loss of life: 6 missing Comment: The ship was carrying a cargo of copper & zinc concentrates on board when the incident happened. The immediate reason of her sinking was believed to be a hull failure. An investigation is currently underway to determine what contributed to the failure of the hull. 24

INTERCARGO Bright Sun, bulk carrier IMO No. : 8318697 Date of Casualty: 18 Nov 2005 Gross Tonnage: 22271 Deadweight: 37574 Built: 1985 Flag: Korea (Republic of) Class: Korean Register of Shipping Voyage to/from: from Vietnam to China Location of incident: 18 17 N, 120 16 E Loss of life: One missing Comment: Bright Sun was in collision with cargo ship M/V Jonny K (G/T 91, 651) 130 miles southwest off Hong Bay Canh light house (Vietnam) on 11 November 2005 and sailed on with a damaged starboard bow. No. 1 and No. 2 cargo holds were flooded with seawater during the passage after the collision and she finally sank on 18 November 2005, 25 25 miles northwest off Mayraira point light house.

INTERCARGO Everise Glory, bulk carrier IMO No. : 7825045 Date of Casualty: 4 Jun 2005 Gross Tonnage: 13519 Deadweight: 22531 Built: 1979 Flag: Malaysia Class: Class. NK Voyage to/from: Australia to Singapore Location of incident: outside the traffic separation scheme of Singapore Strait Loss of life: One missing Comment: the ship sank following a collision with the container ship Uni-Concord. The incident occurred 14 km north-east of Horsburgh Lighthouse, outside the traffic 26 separation scheme in the Singapore Strait.

INTERCARGO Golden Dragon, bulk carrier IMO No. : 8208361 Date of Casualty: 2 Oct 2005 Gross Tonnage: 7855 Deadweight: 12326 Built: 1982 Flag: Taiwan, China Class: China Corporation Register of Shipping Voyage to/from: In port Location of incident: 121 35’ 96 E, 23 57’ 06 N near Hualien harbour Loss of life: none Comment: The ropes of the ship were broken as a result of typhoon “Longwang” when berthed in Hualien Harbour and free of cargo. Her main engine stopped and could not be restarted. Subsequently the ship drifted in the outer harbour and finally grounded on the wave 27 breaker and broke in two.

INTERCARGO Kiperousa, bulk carrier IMO No. : 8407278 Date of Casualty: 7 Jun 2005 Gross Tonnage: 14921 Deadweight: 25370 Built: 1984 Flag: Malta Class: Russian Maritime Register of Shipping Voyage to/from: From Gabon and Cameroon to China, fully loaded with 4, 671 logs Location of incident: Off South Africa’s Eastern Cape coast, southwest of East London Loss of life: None Comment: The log carrier Kiperousa, aground off South Africa’s Eastern Cape coast, southwest of East London, was declared a total loss by insurers. This was after it became obvious that efforts to pull the ship clear on the spring high tides were not succeeding, despite more than half the cargo having been removed ashore by heavy lift Mi 26 helicopter. It is 28 understood the damage to the ship’s hull was too great to ensure a successful salvage.

INTERCARGO Starluck, bulk carrier IMO No. : 7396305 Date of Casualty: 24 May 2005 Gross Tonnage: 16754 Deadweight: 29308 Built: 1976 Flag: Cyprus Class: ABS Voyage to/from: From Argentina to Brazil Location of incident: 28. 35 S, 58. 41 W Loss of life: None Comment: While sailing with the assistance of tugs, M/V Starluck lost steering and grounded approximately 800 metres from the coast in lat 28 35 S, long 58 41 W. The vessel was deleted from the Cyprus flag on 14 th October 2005. Information indicates that the 29 vessel was broken at Chittagong in Bangladesh on the 29 th November 2005.

INTERCARGO Casualty expectations for 2006 30

INTERCARGO Casualties to-date in 2006 • ‘Alexandros T’ has been tragically lost during 2006 with the loss of 26 crew members. • ‘Setsuyo Star’ was a near miss – also off S. Africa Total Losses in 2006: 6 ships + 37 lives vis-à-vis 9. 6 ships + 37 losses of lives average per year over the past 10 years 31

INTERCARGO Casualties …trend downwards: 2006 (to 11. 06) – 6 losses / 1 structural 2005 – 6 / 1 2004 – 5 / 1 2003 – 4 / 0 …. 1996 – 14 losses 32

INTERCARGO Analysis of total losses in 2006 • Casualty analysis must be viewed within the context of fleet growth • Casualty rates remain consistent • Assuming no further casualties in 2006, loss rate will be around 1 per 1, 000 vessels (1996 -2. 6) 33

INTERCARGO IACS Rules 34

INTERCARGO Bulk Carriers - IMO & IACS Requirements l Requirements have come into force affecting new and/or existing Bulk Carriers l Focus is to enhance the hull watertight / weathertight integrity, to provide flooding protection & detection, and to protect seafarers Free-fall Life boat (100% Capacity at stern) New: 1 July 2006 Increased Hatch Cover Loads Air Pollution Prevention* (Ships of Parties) Immersion Suits* (for ea. person + extra) Life Rafts Hatch Cover & Securing Arrangement Approved Mooring & Towing Equipment (New: 1 Jan 2007) Min Reserve Buoyancy and Increased Bow Ht (100% Capacity / Side) New: 1 July 2006 Source: ABS Bunker Tank Protection Loading (New: 1 Aug 2007) Restrictions (At >90% Dwt) Side Shell Frame Reassessment Permanent Means of Access Water Ingress Detection and Pumping Arrangement* Foredeck Fittings* 35

INTERCARGO INTERNATIONAL ASSOCIATION OF DRY CARGO SHIPOWNERS Thank you www. intercargo. org www. shippingfacts. com http//gisis. imo. org www. themaritimefoundation. com 36