Erik'Ranheimintertanko'com

1

• Erik.Ranheim_at_intertanko.com
• Manager Research and Projects
• Lloyds 7th International Product Tanker
  Conference
• London 14 September 2005

2
Phase out

• Regulations
• 13F
• 13G
• 13H
• MARPOL Annex II
• OPA90 schedule/size limit different
• Statistics
• Conversion to PL/SBT - DH
• 2010 final year for SH tankers?

3
Phase out history

• In the aftermath of Exxon Valdez, 0n 18 August
  1990, the US President signed into law the US Oil
  Pollution Act of 1990 (OPA 90). This was the
  first regulation which has mandated double hull
  design for tankers with a building contract after
  30 June 1990 and with a delivery after 31 Dec.
  1992
• First IMO phase out initiated by the US OPA 90 -
  ratified by IMO March1992 - enforced as from July
  1993
• Accelerated IMO phase out initiated by Europe as
  a result of the ERIKA accident outside France -
  ratified by IMO April 2000 - enforced as from
  September 2001
• Further acceleration of IMO phase out initiated
  by Europe as a result of the PRESTIGE accident
  outside Spain - ratified by IMO December 2003,
  enforced as from April 2005 - enforced by Europe
  as from October 2003
• The European Unions Regulation (1726/2003) on
  single hull tankers took effect on 21st October
  2003
• Both ERIKA and PRESTIGE carried Heavy Fuel Oils
  that can pollute up to ten times more than crude
  oil.  IMO therefore adopted a new regulation
  Regulation 13H of Annex I of MARPOL 73/78
  banning the carriage of heavy grade oil as cargo
  in single hull oil tankers as from 5 April 2005.

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Phase out by segment
5
Phase out SH tankers (5-9,999 dwt)

• No

ships 02 SH 432
Phase out year
6
Phase out SH tankers (10-19,999 dwt)

• No

ships 542 SH 186 order 149
Phase out year
Phase out overhandg - 2004 44
7
Phase out SH tankers (20-29,999 dwt)

• Number

ships 253 SH 142 Orders 18
Phase out overhang - 2004 23
Phase out year
8
Phase out SH tankers (30-44,999 dwt)

• Number

Ships 637 SH 216 Orders 121
Phase out overhang - 2004 13 36 category 1
tankers built 1978-82 33 DB/DS phased out
2010-2015
Phase out year
9
Phase out SH tankers (45,000 59,999 dwt)

• Number

Ships 425 SH 75 Orders 229
Phase out year
Phase out overhang - 2004 2 14 category 1
tankers built 1978-82
10
Phase out SH tankers (60,000 79,999 dwt)

• Number

Ships 264 SH 98 Orders 129
Phase out year
11 category 1 tankers built 1978-82
11
Phase out SH tankers (10,000 79,999 dwt)

• m dwt

Ships 75 m dwt SH 28 m dwt Orders 28 m
dwt
Phase out year
63 (976 tankers 17.6 m dwt) phase out below
30,000 dwt 32 (401 tankers 8.9 m dwt) orders
below 30,000 dwt 4-10 m due for phase out 2010
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Tanker fleet development
m dwt
13
Implementation policies of special provisions
14
Phase out

• special provisions
• 13 G (5) - double bottom/sides - CAS requirement
• 13 G (7) - SH trading beyond 2010/25 years
• 13 G (8) (b) entry into ports or offshore
  terminals (provisions (5), (7)
• 13 H (5) - double bottom/sides - trading beyond
  2010/25 years
• 13 H (6) (a) - crude oil having a density at 15ºC
  higher than 900 kg/m3 but lower than 945 kg/m3
• 13H (6) (b) - 600 tons dwt and above but less
  than 5,000 tons dwt - SH until 25 years
• 13 H (7) - exclusively within an area under its
  jurisdiction,
• 13 H (8) (b) entry into ports or offshore
  terminals (provisions (5), (6)

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Implementation policies
Source WWW.INTERTANKO.com
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Annex II revision
17
MARPOL Annex II Revisions

• After 1 January 2007 products defined as
  "floaters" and "persistent floaters", which
  include the vegetable oils, will be assigned to
  Category Y. Vegoils will have to be carried in
  IMO Type 2 or 3 space. Oil-like substances will
  not exist (xylene will require chemical code
  certificate). All ships loading IBC Cargoes will
  need to hold a Certificate of Fitness (CoF)
  issued under the revised requirements.

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MARPOL Annex II Revisions

• The vegetable oils listed in Chapter 17 of the
  IBC Code will be regulated as Pollution Category
  Y and ship Type 2, and contain a limit on free
  fatty acid content. The IMO agreed that the
  individually identified vegetable oils should in
  principle be carried in Ship Type 2. However, via
  regulation 4.1.3 of the revised MARPOL Annex II,
  an administration might allow the carriage of
  these substances in a ship Type 3 ONLY if the
  ship complies with all requirements for a ship
  Type 3, as identified in the IBC Code, except for
  cargo tank location. The cargo tank location
  shall be in accordance with regulation 4.1.3.2 of
  the revised MARPOL Annex II but these ships must
  be constructed with double sides meeting the
  requirements for IMO ship Type 2 vessels and
  double bottom requirements of B/15 or 2 metres
  (whichever is the lesser) and the CoF shall
  indicate the exemption granted.

19
Tanker fleet by hull
by m dwt
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Conclusion
21
Conclusion

• Phase on schedule with no major problems
• 2010 situation unclear
• OPA re-schedule different
• Annex II revision will affect single hull product
  tankers