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INTERTANKO An Introduction & Key issues facing the tanker industry today Presented by John INTERTANKO An Introduction & Key issues facing the tanker industry today Presented by John C. Fawcett-Ellis Legal Counsel & Regional Manager Asia-Pacific Dalian, 24 June 2004

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

-strict membership criteria based on quality and performance -strict membership criteria based on quality and performance

The International Association of Independent Tanker Owners INTERTANKO today • 240 Members • 2, The International Association of Independent Tanker Owners INTERTANKO today • 240 Members • 2, 200 tankers • 160 million dwt • Average age: 13. 5 years • 270 Associate Members • 27 Staff / 6 Consultants Oslo London Singapore Washington

INTERTANKO in Asia - Pacific Membership - Australia – Botany Bay Shipping Group - INTERTANKO in Asia - Pacific Membership - Australia – Botany Bay Shipping Group - China – Hebei Ocean Shipping Co, Cosco Dalian (Ass. Member), - China Shipping, Nanjing Tanker Corporation & Sinochem Shipping Hong Kong – Anglo-Eastern, Associated Maritime, Eurasia, Fairmont, HK Ming Wah, Parakou, TCC, Unique, Wah Kwong & Wallem Japan – Daiichi Chuo, Daitoh Trading, Iino Lines, Kawasaki Line, Kyoei Tanker, Meiji Shipping, Mitsui OSK, Tokyo Marine, NYK, Nissho, Shinwa, Taiheiyo, Yuyo Malaysia – MISC, Aurora, Sutrajaya, Barber Shipmanagement Singapore – NAS, Petroships, PCL, Thome, TESMA, World Tankers, South Korea – SK Shipping, Hanjin (Ass Member)

INTERTANKO IN ASIA • Regional Office opened in Singapore in 1999 • Regional Panel INTERTANKO IN ASIA • Regional Office opened in Singapore in 1999 • Regional Panel since 1998 • Executive Committee members: - Mr KH Koo - TCC – Vice Chairman, - Mr Joseph Kwok – AET / MISC - Mr Shirakuma - NYK

INTERTANKO’s Objectives: • Powerful voice for the tanker industry • Provide members with first INTERTANKO’s Objectives: • Powerful voice for the tanker industry • Provide members with first class information and services

A powerful voice for the tanker operators worldwide: • IMO • Dialogue with industry A powerful voice for the tanker operators worldwide: • IMO • Dialogue with industry counterparts • Partnership with USCG • Lobbying on behalf of the tanker operators with EU & Washington DC • Washington State litigation – Victory in the Supreme Court of the US

Membership services: • Weekly news • www. intertanko. com • Advice to members on Membership services: • Weekly news • www. intertanko. com • Advice to members on • • Operational/Technical/Legal matters Port & Terminal information Freight and Demurrage Information Pool Terminal Vetting Dbase Practical publications on technical issues

Key issues facing tanker operators: • ISPS Code – enforcement • Revisions to International Key issues facing tanker operators: • ISPS Code – enforcement • Revisions to International Oil Spill Liability & Compensation Regime • Criminalisation of seafarers • Restoring trust with regulators / image of the industy

ISPS key issues: • Enforcement – 1 July deadline - What if a vessel ISPS key issues: • Enforcement – 1 July deadline - What if a vessel has had its security plan approved but does not have a certificate on board? - Detention – if so for how long? - Will PSC target specific vessel types? • Inspections by PSC - ensuring security does not compromise safety - Shanghai MSA – were only given a month to train their inspectors • C/P considerations - Laytime / demurrage - Additional port expenses

Security clause – Voyage Charters Key Considerations: • Validity of Notice of Readiness • Security clause – Voyage Charters Key Considerations: • Validity of Notice of Readiness • Allocation of the risk of delay to the vessel • Provision of information by charterers • Warranting compliance with ISPS code and other security regulations • Allocation of costs, losses, liabilities • Nomination of alternative ports

Revisions to International Oil Spill Liability & Compensation Regime • Current IOPC regime - Revisions to International Oil Spill Liability & Compensation Regime • Current IOPC regime - CLC - Fund - Supplementary Fund • Strict but limited liabilities for tanker owners • Post incident fund by oil receivers • Total compensation available approx 1 bn USD

IOPC – the pressure for reform: • Should the regime not just compensate oil IOPC – the pressure for reform: • Should the regime not just compensate oil • • victims efficiently but also tackle sub-standard shipping? Advocates of reform Oil Companies, EU States Reform would most likely increase owners liability/insurance costs whilst sub-standard operators would continue and not care of the consequences

Criminalisation of seafarers • The master of the Prestige – continued detention by Spanish Criminalisation of seafarers • The master of the Prestige – continued detention by Spanish authorities • Disincentive to join the industry – shortage of good crews • No ship is safe without a responsible, well trained, motivated and happy crew • Seafarers often not accorded the same human rights as others

Restoring trust with regulators / image of the industy • The major incidents of Restoring trust with regulators / image of the industy • The major incidents of the Erika (12. 99) and the Prestige (19. 11. 02) have fuelled a massive regulatory attack on the tanker industry - Accelerated phase out of SH tankers - Pressure to reform the IOPC regime - Move to criminalise accidental pollution • Major challenge to take control of our own industry – show that the industry is responsible & quality focussed – zero tollerance – not one drop of oil. . .

Conclusion The world needs energy; our industry is there to provide a safe, environmentally Conclusion The world needs energy; our industry is there to provide a safe, environmentally sound, efficient and cost effective transportation solution INTERTANKO is there to promote the tanker industry; to encourage ever higher standards and technical innovation so that the industry may live up to the zero tollerance to pollution of the public and regulators alike

THANK YOU 谢谢大家 www. intertanko. com THANK YOU 谢谢大家 www. intertanko. com