INTERTANKOINTERTANKO

A strong voice for the Tanker IndustryA strong voice for the Tanker Industry

Presented byPresented by

John C. Fawcett-EllisJohn C. Fawcett-EllisGeneral Counsel & Regional Manager Asia-PacificGeneral Counsel & Regional Manager Asia-Pacific

Hebei Ocean Shipping Co., Qinhuangdao, 26 May 2005Hebei Ocean Shipping Co., Qinhuangdao, 26 May 2005

Anti-trust Compliance StatementAnti-trust Compliance Statement

INTERTANKO is firmly committed to maintaining a fair and INTERTANKO is firmly committed to maintaining a fair and competitive environment in the world tanker trade, and to competitive environment in the world tanker trade, and to

adhering to all applicable laws which regulate adhering to all applicable laws which regulate INTERTANKO’s and its members’ activities in this market. INTERTANKO’s and its members’ activities in this market.

These laws include the anti-trust and competition laws, These laws include the anti-trust and competition laws, which the US, the European Union and many nations of which the US, the European Union and many nations of the world have adopted to preserve the free enterprise the world have adopted to preserve the free enterprise

system, promote competition and protect the public from system, promote competition and protect the public from monopolistic and other restrictive trade practices. monopolistic and other restrictive trade practices.

This meeting will be conducted in compliance with This meeting will be conducted in compliance with

INTERTANKO’s anti-trust and competition law guidelines .INTERTANKO’s anti-trust and competition law guidelines .

- representing representing responsible oil and responsible oil and chemical tanker owners chemical tanker owners worldwideworldwide

- promoting Safer Ships, promoting Safer Ships, CleanerCleaner Seas and Free Seas and Free CompetitionCompetition

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

The strength of The strength of INTERTANKOINTERTANKO

230 members – operating some 2,200 230 members – operating some 2,200 tankerstankers

280 associate members280 associate members 26 staff lead by MD – Dr P Swift26 staff lead by MD – Dr P Swift Oslo, London, S’pore and Washington DCOslo, London, S’pore and Washington DC Chairman – Mr S Van Dyck Chairman – Mr S Van Dyck 14 committees14 committees 4 regional panel4 regional panel

INTERTANKO in Asia - INTERTANKO in Asia - PacificPacific

MembershipMembership

- AustraliaAustralia – Botany Bay Shipping Group – Botany Bay Shipping Group- ChinaChina – – Hebei Ocean Shipping Co, Cosco Dalian, China Hebei Ocean Shipping Co, Cosco Dalian, China

Shipping, Nanjing Tanker Corporation, Sinochem Shipping Shipping, Nanjing Tanker Corporation, Sinochem Shipping & Sinotrans& Sinotrans

- Hong KongHong Kong – Anglo-Eastern, Associated Maritime, Eurasia, – Anglo-Eastern, Associated Maritime, Eurasia, Fairmont, HK Ming Wah, Parakou, TCC, Unique, Wah Kwong Fairmont, HK Ming Wah, Parakou, TCC, Unique, Wah Kwong & Wallem& Wallem

- JapanJapan – Daiichi Chuo, Daitoh Trading, Iino Lines, Kawasaki – Daiichi Chuo, Daitoh Trading, Iino Lines, Kawasaki Line, Kyoei Tanker, Meiji Shipping, Mitsui OSK, Tokyo Line, Kyoei Tanker, Meiji Shipping, Mitsui OSK, Tokyo Marine, NYK, Nissho, Shinwa, Taiheiyo, Yuyo, SankoMarine, NYK, Nissho, Shinwa, Taiheiyo, Yuyo, Sanko

- MalaysiaMalaysia – MISC, Aurora, Barber Shipmanagement – MISC, Aurora, Barber Shipmanagement- SingaporeSingapore – Titan, Petroships, PCL, Thome, TESMA, World – Titan, Petroships, PCL, Thome, TESMA, World

Tankers, Tankers, - South KoreaSouth Korea – SK Shipping, Hanjin, – SK Shipping, Hanjin,

INTERTANKO IN ASIAINTERTANKO IN ASIA

Regional Office opened in Singapore in Regional Office opened in Singapore in 19991999

Regional Panel since 1998 Regional Panel since 1998

Asian Regional Panel:Asian Regional Panel:- Mr JH Lee – SK Shipping, Chairman - Mr JH Lee – SK Shipping, Chairman - Mr Joseph Kwok, American Eagle - Mr Joseph Kwok, American Eagle

Tankers, Vice-Chairman Tankers, Vice-Chairman - Mr K Yoshida, K Line, Vice-- Mr K Yoshida, K Line, Vice-

ChairmanChairman

INTERTANKO’s INTERTANKO’s Objectives:Objectives:

Powerful voice for the tanker Powerful voice for the tanker industryindustry

Provide members with first class Provide members with first class information and servicesinformation and services

Membership services:Membership services:

Weekly newsWeekly news www.intertanko.comwww.intertanko.com Advice to members on Advice to members on

Operational/Technical/Legal mattersOperational/Technical/Legal matters Port & Terminal informationPort & Terminal information Freight and Demurrage Information PoolFreight and Demurrage Information Pool Terminal Vetting DbaseTerminal Vetting Dbase Practical publications on technical issuesPractical publications on technical issues

Activities in 2004/5Activities in 2004/5

INTERTANKO meetings/receptions held in Asia: INTERTANKO meetings/receptions held in Asia: - HK/Shanghai – Feb- HK/Shanghai – Feb- Singapore – May- Singapore – May- Tokyo – June- Tokyo – June- Dalian – June- Dalian – June- Singapore – November- Singapore – November- Yokohama, ARP -Tokyo – November- Yokohama, ARP -Tokyo – November- Feb/March 05 – ARP - HK, Beijing, Shanghai- Feb/March 05 – ARP - HK, Beijing, Shanghai

Presented papers at conferences in Shanghai, Presented papers at conferences in Shanghai, Singapore, KL and DalianSingapore, KL and Dalian

Issues in AsiaIssues in Asia

Security in the Straits of MalaccaSecurity in the Straits of Malacca Sharing the burden of Sharing the burden of

navigational safety in the Straits navigational safety in the Straits of Malaccaof Malacca

Navigational safety on Chinese Navigational safety on Chinese riversrivers

Port State ControlPort State Control

PIRACY

Extent of the problemExtent of the problem

Recent developmentsRecent developments

The challengesThe challenges

Malacca StraitsMalacca Straits

2003 - 28 attacks

2004 - 37 attacks

2004 - 4 killed, 3 injured, 36 kidnapped

Improved cooperation and joint patrols in Malacca Strait, July 2004

Pan-Asia anti-piracy initiative – Regional Cooperation Agreement or ReCAAP

Malaysian Maritime Enforcement Agency – up to 40 vessels plus helicopters within 5 years.

Current DevelopmentsCurrent Developments

Current DevelopmentsCurrent Developments

– Inventus - Unmanned Aerial Vehicle (UAV)

– Reconnaissance system for aerial surveillance

The ChallengesThe Challenges

PoliticalPolitical

Resouces Resouces

Cross boarder pursuitsCross boarder pursuits

Tackling the root of the problemTackling the root of the problem

INTERTANKO’s INTERTANKO’s Legal/Chartering Legal/Chartering services:services: Model clausesModel clauses Intankbill 2003Intankbill 2003 Chartering publicationsChartering publications C/P advice serviceC/P advice service Freight and Demurrage Information Freight and Demurrage Information

PoolPool Freight and Demurrage DbaseFreight and Demurrage Dbase www.intertanko.com/legalwww.intertanko.com/legal

Examples of Examples of INTERTANKO’s ClausesINTERTANKO’s Clauses Bunker Emissions ClauseBunker Emissions Clause AgencyAgency DemurrageDemurrage PumpingPumping ROBROB Turkish Straits TransitTurkish Straits Transit Danish Straits Transit Danish Straits Transit Quality Management ClauseQuality Management Clause MSDSMSDS

Other key issuesOther key issues

Common Structual RulesCommon Structual Rules Port State ControlPort State Control Ballast Water ManagementBallast Water Management Ship recyclingShip recycling ClassClass US regulatory issuesUS regulatory issues EU Maritime Safety package etc etcEU Maritime Safety package etc etc

Other servicesOther services

Ports / terminals DbasePorts / terminals Dbase Marine / EnvironmentalMarine / Environmental TechnicalTechnical Market / ResearchMarket / Research Weekly NewsWeekly News www.intertanko.comwww.intertanko.com www.Q88.comwww.Q88.com

The tanker industry The tanker industry today:today:

1.1. Vital to the global economy Vital to the global economy

2.2. Provides a flexible, cost efficient and Provides a flexible, cost efficient and environmental safe transportation environmental safe transportation system to meet the world’s energy system to meet the world’s energy needsneeds

3.3. Invested billions of USD in renewing Invested billions of USD in renewing its fleetits fleet

4.4. Despite an increase in tonne miles Despite an increase in tonne miles accidents and spills have decreasedaccidents and spills have decreased

                     

                                    

AS AN INDUSTRY WE MAY NOT BE LOVED BUT WE ARE NEEDED

• World Oil World Oil Consumption 3.6 Consumption 3.6 billion tsbillion ts

• Transported by sea Transported by sea 2.2 2.2 billion tsbillion ts

• 6060% transported by sea.% transported by sea.

Oil pollution into the seaMaritime sources

4 %

67 %

4 %

2 %

3 %

2 % 0 %

18 %Shipping general

Accidents tankers+barges

Tank washing/VOC

Exploration and Production

Coastal Refineries

War related accidents

Leisure Craft

Natural seeps/others

Tanker/barges: 5%Shippping:9% of which tanker/barge accidents 2.8%

The world expects us toThe world expects us to have have 00 accidents. accidents.

Even though 99.9997% of oil is delivered safelyEven though 99.9997% of oil is delivered safely

It takes only one accident to change the industryIt takes only one accident to change the industry

Tanker incidents: 1978-03

Source: LMIS, Informa, press, INTERTANKO

Number

0

200

400

600

800

1000

78 80 82 84 86 88 90 92 94 96 98 00 02

Grounded

War

Misc

Hull&Machinery

Fire/Expl

Collision

Accidental oil pollution from tankers and tanker trade

Source: ITOPF, Fearnleys

1000 bn tmm ts spilt

0,0

0,7

1,4

2,1

2,8

3,5

1970s 1980s 1990s PR00s

0

22

44

66

88

110

132

m ts spilt

'0000 bntonne-miles

““Oil should travel first class”Oil should travel first class”- that is the aim of the oil shipping industry- that is the aim of the oil shipping industry

Vision for the tanker industry:

“ A responsible, sustainable and respected industry able to influence its own destiny.”

THANK YOUTHANK YOU

谢谢大家

www.intertanko.comwww.intertanko.com