Singapore
3 April 2007
COUNCIL AGENDA
&
INTERTANKO ISSUES
Peter M. Swift
Council Agenda
Corporate Affairs: Election of Chairman, MD’s Report
Ship Recycling
Revision of MARPOL Annex VI
Information Sharing/Early Warning System
Panama Canal Toll increases
Best practices to control inadvertent Cargo Vapour Emissions
Fleet Development – including conversions of single hulls
Human Element in Shipping Committee (including Tanker Officer Training Standard)
EU Ship Source Pollution Directive
European Issues
US Issues
Shipboard Waste Management – Revision of IMO regulations & guidelines on OWS
Pilotage – including Torres Straits
Reception Facilities
Lifeboat Safety (services and inspections)
Terminal Vetting Database
Q-Quest Membership criteria
Committee Reports
Regional Panel Reports
Poseidon Challenge
Date and Place of Next Meetings
INTERTANKO Singapore
Ship Recycling
Industry Interim Strategy
1. Ship owners should only use Recycling Facilities that have made
demonstrable advances in terms of safety and environmental
management requirements as established in Section C of the draft
IMO Convention.
2. Each new and existing ship to have on board Part 1 of the Hazardous
Materials Inventory, which identifies hazardous materials, their
location and approximate quantities contained in the ship’s structure
and equipment, with Parts 2 and 3 of the HMI being completed prior
to recycling.
3. To prevent explosions during the recycling process, arrangements
shall be made by the facility that hot work will only commence once
the necessary void spaces have been declared gas-free for hot work.
4. A Ship Recycling Plan should be developed prior to the recycling of
any ship.
5. Issuance of a Delivery Declaration for vessels that are deemed Ready
for Recycling.
INTERTANKO Singapore
Panama Canal Toll increases
Panama Canal Expansion
Project details:
• Referendum 22 October 2006 (78% yes)
• 7 years to complete (completion 2014 for the
Centennial of the PC opening)
• New Dimensions for third lane:
• 49 metres (160 ft) Beam
• 366 metres (1,200 ft) LOA
• 15 metres (50 ft) Draught
• Up to about 170,000 DWT (12,000 TEU)
Panama Canal Tolls
current & proposed
Current and future tariffs:
Tankers
Current:
L: $2.96
B: $2.35
5/2007:
$3.29 (+11%)
$2.61 (+11%)
5/2008:
$3.70 (+12.5%)
$2,94 (+12.6%)
(based on 1st 10,000 PC/UMS net tonnage)
5/2009:
$3.98 (+7.6%)
$3.18 (+7.5%)
Panama Canal Tolls
Proposals for increases over next 3 years
Initial industry observations:
• Significantly higher than expected increases for next 3
years - with only 3 months notice.
[Expected 3.5% real annual hike]
• Affects existing contracts and spot market
• Uncertainty/ weakens confidence over future business
planning
[Planned increases for post 2009?]
•
• Large upfront increases for doubtful (?) future benefits
[Mostly capacity debottlenecking and extra 0.3-0.5 m.
draft]
• Industry seeks gradual & predictable increases
INTERTANKO Singapore
Fleet Development
(Single Hull) Tanker Phase Out
- an “uncertainty” post 2010
m dwt
70
60
MARPOL (min phase out - trading of SH
until 25 years)
EU + no SH after 2010
50
OPA90
40
30
20
10
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Assumptions :
MARPOL phase out allows for trading until the age of 25 years old, max 2015
The EU alternative does not allow SH trading after 2010.
DB/DS can trade until the age of 25 years old, but here cut off 2015
Conversions to Double Hull
a further “uncertainty”
Built
10-30,
000 dwt
30-52,
000 dwt
60-72,
000 dwt
90-113,
000 dwt
120-148, VLCCs
000dwt
TOTAL
(incl 6 obos)
1970s
3
2
0
0
0
0
5
19801984
8
36
9
1
0
0
54
19861989
11
12
0
3
3
1
30
19901998
2
9
1
18
2
2
34
24
59
10
22
5
3
123
TOTAL
Reclassification of Annex II products
Type of change
Reclassified from/to
Products and volumes
Re-categorisation of
vegoils, soft oils and
fats
D to IMO type 2, or IMO
type 3 with DH meeting
operational requirements
Palm oil
27 m ts
Soybean oil
10 m ts
Sunflowerseed
3 m ts+
Other veg oils
3 m ts+
Tallow + fatty acids+ 2 m ts+
Total approximately 50 m ts
Other products with
no previous
requirements on ship
type
IBC ch. 18 to IMO type 3
Methanol
17 m ts
MTBE
5.5 m ts
UAN
5 m ts
MEG/TEG/DEG
5 m ts
Methyl ethyl ketone,
ethyl acetate
1 m ts
Change of ship type
requirements
IMO type 3 to type 2
Xylenes
Acrylonitrile
No requirements
No change
Molasses
Ethanol
>5 m ts
<1 m ts
5 m ts
3 m ts
Major exporters of vegetable oils
m ts
Further information available at
www.intertanko.com
The Revisions to
MARPOL Annex II
(entry into force 1/1/2007)
A Practical Guide
November 2006
Changes in the pipeline
Chemical Carriers:
•
Proposals from the Inter-industry Group to amend
SOLAS to provide for the application of inert gas to
new oil tankers of less than 20,000 DWT and to
new chemical tankers.
•
Review of Dangerous Cargo Endorsements through
STW.
INTERTANKO Singapore
European Issues
EU Issues
• Ship Source Pollution Directive
(Status report)
• Maritime Safety Package III
• Green paper on future maritime
policy for the EU
• EU Competition Rules
EU Maritime Safety Package III
• Revision of Port State Control Directive
• Vessel Traffic Monitoring Directive
• Athens Convention + extension
• Accident Investigation Directive
• Civil Liability / Financial Guarantees
• Flag State Audit / Related Issues
• Revision of Classification Society Directive
INTERTANKO Singapore
US Issues
US Issues
• California Air Resources Board Air
Emission Standards
• Massachusetts lawsuit
• Lawsuit on Ballast Water discharges
INTERTANKO Singapore
Shipboard Waste Management – Revision
of IMO regulations & guidelines on OWS
Revision of IMO Regs & Guidelines on
OWSs
IMO undertaking a critical review of all its regulations and
guidelines related to oily-water waste treatment, including
– the design of these installations,
– clarification of the terminology and better definitions of the various elements
of these installations,
– better and clearer interpretation of the record-keeping requirement in the
Oil Record Book,
– inter-relation and harmonisation of regulations between regulations in
MARPOL Annex I and MARPOL Annex VI.
– The revision will also consider the capacity of onboard incinerators,
including their storage facilities and the operational parameters for their
design.
INTERTANKO’s “Guide for the Engine Room Wastes Treatment Associated
Systems (ERWTAS)” – will now be aimed at providing guidance on how to
apply in practice the new IMO mandatory requirements.
INTERTANKO’s “Guide for Correct Entries into the Oil Record Book” – may be
updated to reflect new regulations and/or may be submitted to IMO as an IMO
Guide for Correct Entries in the ORB.
INTERTANKO Singapore
Lifeboat Safety (services and inspections)
ILAMA / INTERTANKO / INTERCARGO
JOINT FEEDBACK FORUM
LIFEBOAT USER GROUP
ILAMA, INTERTANKO and INTERCARGO have launched a joint
feedback forum where end-users (crews) of lifeboats and other Life
Saving Appliance (LSA) equipment can comment on how effective
such equipment is and how efficiently it functions.
The aim of the forum is to produce feedback and input to the
manufacturers, which will help to improve design of life saving
equipment and thereby enhance safety in the industry, taking a
crucial step towards achieving the goal of zero fatalities.
E-mails (which may be anonymous) will initially be channelled
through INTERTANKO, noted and processed in the strictest
confidence, and then directed on to ILAMA for action.
PLEASE INFORM US OF YOUR CONCERNS
email : lifeboats@intertanko.com
INTERTANKO Singapore
Poseidon Challenge
Poseidon Challenge – Houston March 28
INTERTANKO Singapore
Date and Place of Next Meetings
Future Dates
Asian Panel
19 September, 2007Tokyo
Council
15 November, 2007 London
Vetting Seminar
21 November, 2007
Hong Kong
Council & AGM
April, 2008
Istanbul
Other Issues
• Port State Control / EQUASIS data analysis
• Confidential PSC reporting system – Ukrainian
ballast water requirements
• Cadet Berth survey
• INTERTANKO Databases and Benchmarking
systems - (TVD, TMSA, Op costs / performance)
•
Incident analyses
• Maritime (Industry) Foundation
Reported tanker incidents reducing –
until 2005/6 !!
Number
1000
800
600
420
War
336
400
H&M
252
F&E
168
200
Grounding
84
Collis.
Misc
0
00
0
01
02
03
04
05
06
Tanker incidents 2006 by type
Reported tanker
incidents Jan-Dec
2006 - total 264
Hull &
Machinery
(27 engine, 3
hull related)
F&E
Misc.
28%
9%
Collision
13%
Grounding
17%
33%
Groundings
Fire/Explosion
Collision
Hull & machinery
Misc/unknown
Shipping is more than ships moving around the world;
it’s about people and passion
it’s about expertise and commitment
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Owning and
operating a
ship
A Ship’s
Life
When the ship
comes to shore
Different ships,
different cargoes
Who
makes
the rules?
The human
element
AIR EMISSIONS
&
REVISION of MARPOL ANNEX VI
Drivers of Change
1.
Society is driving the requirement for ships to
reduce harmful air emissions from engine
exhausts – particularly in Europe and the US
and to a lesser extent in Japan and elsewhere
2.
Legislators, regulators and others are taking
action and planning more
3.
The IMO has initiated a revision process for
MARPOL Annex VI
States and industry are united in trying to
ensure that Air Emissions are regulated
internationally through the IMO
IMO MARPOL Annex VI
Prevention of Air Pollution from Ships
• Covered by Annex VI
– Oxides of Nitrogen (NOx) – create Ozone
– Sulphur Oxides (SOx) – create acidification
– Hydrocarbons (HC) – gas, soot and some
particulates
– Volatile Organic Compounds (VOC)
– Refrigerant Gases
• Not covered (currently) by Annex VI
– Other Particulate Matter
– Carbon Dioxide (CO2)
– Carbon Monoxide (CO)
Engine exhaust gases are dependent upon engine
type, engine settings and fuel type
Challenges for IMO
” Reduce air emissions from ships ”
• What emissions
- SOx, NOx, PM, VOCs ?
- Later CO2 ?
• Where
- Globally, Coastal regions ?
• Timing:
- Phased, where/when/how ?
MARPOL Annex VI
PROPOSALS FOR AMENDMENTS
• Lower limits for SOx & NOx emissions
• SECAs with lower S cap (1.0% or 0.5%)
• NOx emission limits on existing engines
• NECAs – NOx controlled areas
• Restrictions on Particulate Matters (PM)
•
emissions
Further controls on VOC emissions from
cargo oil tanks
REVISION OF MARPOL ANNEX VI
INTERTANKO PROPOSAL
• Distillate fuels & 2-tiered S cap program:
– from [2010], a maximum of 1.00% S content
– for ships’ engines installed on and after [2015], a
maximum [0.50]% S content
• A Global Sulphur Emission Control Area
• A New Fuel specification in Annex VI
• Simpler monitoring of compliance
Distillate/MDO Advantages:
AIR EMISSIONS
• Applies to ALL existing ships/engines
• With no other measure, immediately reduces:
– SOx emissions by 80% to 90%
– PM emissions by 90%
– NOx emissions by 10% to 15%
• Reduces fuel consumption with some 4%
from ALL ships and thus CO2 emissions
• Facilitates further NOx reductions by in-engine
modifications for IMO’s Tier II & III
Distillate/MDO :
ADDITIONAL BENEFITS
• ENVIRONMENTAL:
–
–
–
–
Reduces onboard fuel generated waste
No fuel heating/pre-treatment or waste incineration = energy saving
ALL ships become “greener”
“Cleaner” waste & free of hazardous elements contained in residual
fuels
– Avoids use of abatement technologies = no further additional waste
& no need of further waste disposal
– [Any bunker spill significantly less harmful]
• SAFETY:
– Less incidents with engine breakdowns caused by poorer quality
fuels / lower maintenance load
– No need of complex fuel change-over operations
– No risk of incompatibility of blended fuels
– Safer working environment for crews
FUEL OPTIONS TO REDUCE AIR
EMISSIONS
At what cost and who takes responsibility ?
• High sulphur residual with abatement
technology such as scrubbers, etc.
• Low sulphur residual
• Combination HS/LS residual
• MDO (Low sulphur)
CO2 Emissions –
Net Environmental Benefit
• Additional refinery CO2 emissions from de-sulphurisation
of residuals
• Additional refinery CO2 emissions from MDO
production/distillation
• Ship CO2 emissions lower with MDO due to lower fuel
consumption
• Ship CO2 emissions lower with MDO since no need to
heat residual fuels prior treatment & injection
• High CO2 emissions in manufacturing & operating
scrubbers
• Higher CO2 emissions with catatylic converters when
using residual fuels rather than distillates
Volatile Organic Compounds (VOC)
Emissions & their Control
VOCs generated both during loading and on passage
• Vapour return lines used in some ports
• INTERTANKO developed VOC control procedure (VOCON) with
potential to reduce by more than 70% VOC emissions on passage
• System further enhanced by adoption of the Pres-Vac VOCON P/V
valve
• Further industry development with KVOC loading system
• Norway advocating incorporation of VOC Management Plan in to
Annex VI
• Ongoing work by INTERTANKO on VOC operational controls
related to cargo Reed Vapour pressure
BLG Working Group Options: SOx
• A. Status Quo - No change
• B. Sulphur Emissions Control Area (SECA):
– A global sulphur cap (unchanged or lower value)
– SECA sulphur cap lowered in two tiers:
• 1.0% in [2010]
• 0.5% in [2015]
• C1. Change to distillate fuels (no SECA) :
– Use of distillate fuels for all ships
– A global sulphur cap in two tiers:
• 1.0% in [2012]
• 0.5% in [2015]
– Include in MARPOL Annex VI the specification for
the distillate fuel to be used by ships
• C2. Global cap – As C1 but allows use of residual fuel +
scrubbers
What next ?
• BLG : 16 -20 April 2007
• MEPC 56: 9-13 July 2007
• EU Commission to take stock of progress
– Review of Sulphur Directive – 2008
– Scope for Community measures to reduce ship
emissions pursuant to Council’s conclusions –
2008
• US considers own legislation if IMO does not
deliver - ?