“TANKERS TODAY”The Propeller Club, London
21 April 2004Anders Baardvik, Executive Manager
- The International Association of Independent Tanker Owners -- The International Association of Independent Tanker Owners -
Some figures…• 227 Members• 2,198 tankers• 165 million dwt• 37 countries• 70% of independent fleet • 271 Associate Members
INTERTANKO Membership
• 25 Strong SecretariatManaging Director, Dr. Peter M. Swift
• London, Oslo, Washington & Singapore• 14 Committees and Working Groups and 4
Regional Panels• 60 Work Items on the Agenda
INTERTANKO
• Aims to be present and participate in all fora where decisions are made that will have an effect on the industry
• Seat as NGO at the International Maritime Organization - IMO
• Partnership agreements with USCG, AMSA and close links to EMSA and MCA, OCIMF, IACS, Round Table, EC, EP, Green Award, EQASIS, HELMEPA, Paris MoU, Tokyo MoU, Viña del Mar, CDI, ITOPF etc…
INTERTANKO
• 1934International Tanker Owners Association
• 1967“Torrey Canyon”
• 1969TOVALOP and CRISTAL (ITOPF)
• 1970INTERTANKO is dead, long live INTERTANKO
• World wide presence
A little bit of history
• Assist and encourage our members to continuously improve
• Establish membership in INTERTANKO as a symbol of quality, i.a. through strict membership criteria:– Certified and implemented ISM system– All tankers classified by IACS member– All tankers entered in a P&I Club– Satisfactory oil pollution response plans and
insurance cover
Commitment to Quality
• Seek international solutions• Oppose unilateral legislation• Develop regional strength and influence
through regional panels and representation• Build relations with regulators and
monitoring authorities, as well as other industry associations and all links in the Chain of Responsibility
The Strategy
Chain of ResponsibilityChain of Responsibility
Working together
SHIPOWNER
SHIPYARDS
INSURERS
TRAFFICMANAGEMENT
CARGO OWNER
CHARTERER
PORTS & TERMINALS
CLASSSOCIETIES
FLAG STATES
Accidental oil spills from tankers 1970-2003
0
100
200
300
400
500
600
70
72
74
76
78
80
82
84
86
88
90
92
94
96
98
00
02
Tonne miles
0
2,000
4,000
6,000
8,000
10,000
12,000
Trade in Tonne-miles Source: Fearnleys)
Pollution tonnes Source. ITOPF
Tonnes
Development of tanker oil spills
Source: ITOPF 2003
0
5
10
15
20
25
30
35
1970 72 74 76 78 1980 82 84 86 88 1990 92 94 96 98 2000 2002
Spills per Year 10 Year average1970-79
24.2 spills per year on average
1980-898.9 spills per year
on average1990-99
7.3 spills per yearon average
Tanker incidents – improving record
0
100
200
300
400
500
78 80 82 84 86 88 90 92 94 96 98 00 02
CollisionFire/ExplFounderedHull & MachineryMisc WarGrounded
Oil into the Sea Annual Releases, best estimates
Average 1990-1999, '1000 ts
Natural seeps
Extraction of oil
Tanker accidents
Tanker operation
Other transportation
River and run-offs
Other shipping
Other consumption related
Source: National Academy of Science
47%
21%
11%
8%
3%
3%
99.99% of cargoes reach their destination without incident
0
100
200
300
400
500
78 80 82 84 86 88 90 92 94 96 98 00 02
CollisionFire/ExplFounderedHull & MachineryMisc WarGrounded
Exxon Valdez – Erika - Prestige
Erika: December 1999
• European Commission aggressive
• EU Ministers hesitant
• Wish to work through IMO
Prestige: November 2002
• European Commission aggressive
• EU Ministers even more aggressive
• No inclination to work through IMO
Erika: December 1999
• European Commission aggressive
• EU Ministers hesitant
• Wish to work through IMO
Prestige: November 2002
• European Commission aggressive
• EU Ministers even more aggressive
• No inclination to work through IMO
Other regulations in the pipeline
• Particularly Sensitive Sea Areas - PSSA
• Criminalisation of operators and crew
• ISPS – International Ship and Port Facility Security Code
• IOPC Funds
1986 1988 1990 1992 1994 199620
40
60
80
100
120
140
WS
Rate
s
First Gulf War
Tanker Market HistoryKey Events
Start of Delivery of 100VLCC Newbuildings
Ordered During Gulf War
Asian EconomicMiracle
Nearly 100 VLCCs TakenOut of Service for Floating Storage
Daily VLCC spot rates
0
10
20
30
40
50
60
70
80
902-J
ul-
99
2-S
ep
-99
2-N
ov
-99
2-J
an-0
0
2-M
ar-
00
2-M
ay-0
0
2-J
ul-
00
2-S
ep
-00
2-N
ov
-00
2-J
an-0
1
2-M
ar-
01
2-M
ay-0
1
2-J
ul-
01
2-S
ep
-01
2-N
ov
-01
2-J
an-0
2
2-M
ar-
02
2-M
ay-0
2
2-J
ul-
02
2-S
ep
-02
2-N
ov
-02
2-J
an-0
3
2-M
ar-
03
2-M
ay-0
3
2-J
ul-
03
2-S
ep
-03
000 $
/day
Short-term disruptions
Strikes in Venezuela Congestion in Bosporus Political unrest in Nigeria Reconstruction in Iraq Japanese nuclear plant maintenance Weather delays in US Gulf and Baltic Sea Phase-out situation unclear Increased consumption in China
Cost elements - Gasoline price at the pump
0.0
1.0
2.0
3.0
4.0
5.0
USA Japan Germany UK
Long haul freight, $3/bbl
Marketing etc
Oil price $30/bbl
Tax
Cost elements making the: gasoline price:
$ per gallon
REALITY
REALITY
REALITY
Image Building
• Will help build an emotional barrier to negative press and inoculate against the effects of disaster
• Will help build international credibility and investor confidence
• Will increase political influence
• Will create a sense of commitment and belonging in an otherwise fragmented industry
Image Building
• Is it necessary?
• Is the industry ready?
THANK YOU