North American Panel
October 22, 2013
INTERTANKO
OVERVIEW
JOSEPH ANGELO
DEPUTY MANAGING DIRECTOR
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MEMBERSHIP
BUDGET
SECRETARIAT
CURRENT MAJOR ISSUES
OCIMF SIRE WG/INTERTANKO VC
ANNUAL TANKER EVENT
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MEMBERSHIP
220+ Members
3,000+ Tankers
270+ Million DWT
Members in 40+ countries
300+ Associate Members
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INTERTANKO Membership
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BUDGET
2011
(Actual)
2012
(Actual)
2013
(Budget)
Total Operating
Income (US$)
7,753,228
6,886,363
7,267,490
Total Operating
Expenses (US$)
6,886,593
6,021,965
7,241,710
Operating Result
866,635
864,398
25,780
Non-operating
Income/expenses
88,303
321,319
-25,000
954,938
1,185,717
780
Result for Year
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SECRETARIAT
20 STAFF MEMBERS IN 4+ OFFICES
Oslo (8), London (10), Singapore (1), USA (1) + Brussels
STAFF INCLUDES
- Managing Director
- Deputy Managing Director & Director of Regulatory Affairs
- Technical Director (+ Technical Manager in London)
- Marine Director (new)
- General Counsel
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CURRENT MAJOR ISSUES
Sustainability
Five-Year Strategic Plan
Ballast water management
Piracy
Greenhouse gas emissions
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SUSTAINABILITY
May 2012 – INTERTANKO Council agreed to:
1. Development of an optimal speed model to show
the relationship between the time charter
equivalent earnings and CO2 emissions, based
on a known freight rate for a specific route and
different tanker speeds
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TC equivalent and emission at various speeds
$/day
Tonnes CO2 emisson
40,000
15,000
Assumed market $12,000 per day
bunker price $600 per tonne
32,000
12,000
24,000
9,000
16,000
6,000
CO2 emission
8,000
3,000
TCE Laden
TCE Ballast
0
7.0
8.0
9.0
10.0
11.0
12.0
13.0
14.0
15.0
16.0
0
17.0
Speed
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SUSTAINABILITY
Expand scope of the INTERTANKO WorldScale
Committee to include commercial issues that
have an impact on tanker operations, including:
2.
•
•
•
•
proper promotion of speed optimization
rising fuel costs
broker’s fees
certain charter party clauses regarding purging
and cargo heating; and
• possible decoupling the fuel costs from the
commercial transactions
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SUSTAINABILITY
Nov 2012 – COUNCIL agreed that INTERTANKO
should develop an action plan to raise the profile of
sustainability to the top level of the oil companies
Feb 2013 – EXCOM agreed that there is a need for
an INTERTANKO sustainability campaign.
1. Initial focus should be on practical issues
that might be changed in the short term
2. Next steps to develop key messages and
to identify key focus areas for campaign
3. Submit to May 2013 Council meeting for
approval
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SUSTAINABILITY
May 2013 – INTERTANKO COUNCIL agreed that
INTERTANKO should:
1. Develop a voluntary Code of Conduct on
Tanker Chartering – a best practice guide
- Payment of freight and demurrage
- Vetting procedures
- Trading ethics
2. Send letter from Chairman to charterers
3. Establish late payment database
4. Work on Vetting inspection costs
5. Expand message to wider audience
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SUSTAINABILITY
Sept 2013 – INTERTANKO Executive Committee
1. Adjustments to Worldscale should be taken back to the
Council in November with a proposal for alternatives that
might readdress some of the terms and rebalance risk in
the short and longer term.
2. There is also a separate debate to be had around
Vetting costs and this should be taken to the Council.
- Cost and availability of inspectors
- Minimizing the number of vetting inspections
- The proper use of SIRE
- Transparency - which needs to be defined
- Review of TMSA
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Five-Year Strategic Plan
Major Issues
• Sustainability
• Human Element
• Tanker safety and performance
• Greenhouse Gas Emission reduction
• Air emissions reduction
• Ballast water management
• Maritime security threats
• Chemical tanker operations
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PIRACY - Somalia
2011 Statistics (IMB)
- 237 attempted incidents
- 28 hijackings
2012 Statistics
- 75 attempted incidents
- 14 hijackings
- 7 commercial ships, 5 dhows, 2 fishing
2013 Statistics (thru August 31)
- 10 attempted incidents
- 2 hijacking ( 2 dhows)
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Significant reduction of piracy
incidents off Somalia
• Better industry compliance with BMP4
• Enhanced military strategy and tactics
• Enhanced use of armed guards
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BEST MANAGEMENT PRACTICES (BMP)
Three essential requirements that cannot be
over emphasized:
• Register with MSCHOA
• Report to UKMTO
• Implement Self Protection Measures
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INTERTANKO position regarding the use of
armed guards
INTERTANKO believes it is the responsibility of the
international navies to ensure the right of free passage
on the high seas including the use of vessel protection
detachments on merchant ships
INTERTANKO does not advocate the arming ships'
crews
INTERTANKO believes that the use of private armed
guards or private security forces onboard merchant
ships has to be a matter for each individual owner or
manager to assess as part of their own voyage risk
assessment
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IMO
IMO Maritime Safety Committee
• MSC.1/Circ.1405 – Interim Guidance to Shipowners,
Ship Operators and Ship Masters on the use of Privately
Contracted Armed Security Personnel on Board Ships in
the High Risk Area
• MSC.1/Circ.1406 – Interim Recommendations for Flag
States regarding the use of Privately Contracted Armed
Security Personnel on Board Ships in the High Risk Area
• MSC.1/Circ.1408 – Interim Recommendations for Port
and Coastal States regarding the use of Privately
Contracted Armed Security Personnel on Board Ships in
the High Risk Area
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IMO
IMO Maritime Safety Committee
• MSC.1/Circ.1443 – Interim guidance to private maritime
security companies providing privately contracted armed
security personnel on board ships in the High Risk Area
• MSC.1/Circ.1444 – Interim guidance for flag States on
measures to prevent and mitigate Somalia-based piracy
(compilation, in a single reference document, the best
practices, codes and standards developed by IMO to date)
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ISO
• IMO MSC requests International Standards
Organization (ISO) to develop standard for
guidelines and the certification of private maritime
security companies providing PCASP
• Standard to be based upon MSC.1/Circ.1443 –
Interim guidance to private maritime security
companies
• ISO Specification 28007 published Dec 20, 2012
• Independent third party certification of PCASP
under way in various countries
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GUARDCON
• Contract for the employment of security guards
on vessels
• Developed by BIMCO to provide clearly worded
and comprehensive standard contract to
conclude agreements with security services
• Reviewed by INTERTANKO Documentary
Committee and endorsed for use by members
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Rules on Use of Force (RUF)
BIMCO Guidance on Rules for the Use of Force
(RUF) by Privately Contracted Armed Security
Personnel (PCASP)
• adopted after significant consultation with broad
industry, insurance and legal sectors
• supplements GUARDCON
100 Series Rules - An International Benchmark
for Commercial Maritime Rules for the Use of
Force (RUF)
• development of ISO standard underway
• intended to supplement ISO 28007
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West Coast of Africa
• First six months of 2013 (IMB)
- 31 incidents
- 4 hijackings
- 56 hostages taken
• Initially, the model is for tankers to be taken,
barges filled with cargo, then ships released
• New name – Extended Duration Robbery (EDR)
• These pirates are much more violent in pursuing
their objective
• Most recent hijacking (5th) off the coast of Gabon
while waiting to berth at Port Gentil
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West Coast of Africa
INTERTANKO action:
• Drafted guidance for Members specific to the
piracy problem in West Africa
• Interim guidance issued by RT in Dec 2012
• RT letter to IMO Secretary General requesting
matter be brought to the attention of the UN
Security Council with a request for assistance to
local constabulary activity in the area (Feb 2013)
• Prompted by INTERTANKO intervention as IMO
Maritime Safety Committee (June 2013), SG
agrees to write to UN SG on the matter
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West Coast of Africa
• In addition, UK Foreign Office and OCIMF
working together on launching a co-ordination
center in the region (similar to UKMTO)
• More recently, African Winds launched on
October 4 by Nigeria – 14 day training program
for 221 troops from Nigeria, Morocco, Senegal,
Ghana, Togo, Benin, and Cameroon by special
forces from US, UK, the Netherlands and
Spain
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GREENHOUSE GAS EMISSIONS
• EEDI & SEEMP mandatory since 1 Jan 2013
• Market Based Measures – No progress
• New Initiative – Operational efficiency or
Monitoring, Reporting & Verification (MRV)
• USA – submission at MEPC 64 (Oct. 2012)
• EU – Stakeholders Meeting on (Dec 2012)
• Some countries working jointly to develop new
approach – USA and EU part of the group
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OPERATIONAL EFFICIENCY (US) – Three phases
1. Data collection to determine the baseline
2. Trial period to establish practical rating system
3. Required operational efficiency scheme
EUROPEAN COMMISSION APPROACH
1. Develop details of “monitoring, reporting and
verification (MRV) system”
2. Finalize obligatory measuring, reporting and
verifying of maritime CO2 emissions after 2013
NOTE : MRV system is essentially the same as Phase
1 and part of Phase 2 of Operational Efficiency
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INTERTANKO Council agreed (May 3013)
• Support the MRV concept in principle
• Continue assessments on the best possible model
• Ship’s efficiency is the best method of measuring
performance improvement with fuel consumption
being the critical parameter
• Collect data from Members on annual fuel
consumption of their tankers
• Collect additional data which would assist in
determining the best INTERTANKO definition of ship’s
efficiency when assessing the various proposals (i.e.
time and distance in laden and ballast voyages, cargo
amount, etc.
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TANKER VETTING
OCIMF Sire WG/INTERTANKO Vetting VC
• Initiated by INTERTANKO VC Chairman
• Initial focus was “the decline in the use of
the SIRE system by OCIMF members”
• Meetings in Nov 2012 and Jan 2013
• Issued discussed included:
- Increased sharing of ship inspection statistical data
- Improved feedback systems on ship inspections and
inspectors
- Development of best practice guidance on important
areas of marine risk assurance
- Development of matters related to crew competency
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2014 ANNUAL TANKER EVENT
Venue – New York City
Dates – May 5 - 9, 2014
Events:
Executive Committee Meeting
Council Dinner and Meeting
Annual General Meeting
Gala Dinner
Tanker Seminar
Workshop
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THANK
YOU!!
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