Latin American Panel

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Latin American Panel

• 25 April 2006
• Rio de Janeiro

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Latin America Panel

• INTERTANKO Today
• Challenges for the Tanker Industry
• Criminalisation

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INTERTANKO Today

• Strong Voice for the Tanker Industry
• Strong Nucleus of Competence and Knowledge
• Strong Support to membership providing services
  and information

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INTERTANKO Today

• Clear Vision for the Industry
• A responsible and respected industry
• Committed to lead continuous improvement
• Able to influence its own destiny
• Clear Statement of Goals
• Clear Purpose for the Association

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INTERTANKO Today

• Strengthened membership base
• (Members and Associate Members)
• Strengthening financial base
• Strengthening governance structure
• Strengthened secretariat

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INTERTANKO Today

• Strong Committees and Panels
• Strengthened Regional Presence

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INTERTANKO Today

• Expanded engagement with the European
  Institutions
• Consolidated our strong position in North and
  Latin America
• Strengthened our involvement and membership
  across Asia
• With active and engaged Regional Panels

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INTERTANKO Today

• FOCUSED WORK PROGRAMME
• Maintaining existing liability regimes
  encouraging adoption of further compensation
  regimes
• Seeking to maintain supremacy of international
  and federal laws
• Working for good class, robust ships
• Overviewing developments for new and existing
  double hull tankers and chemical carriers
• Solution-driven activities for technical,
  environmental, operational and navigational
  challenges
• Arguing for fair terms of trade
• Developing and maintaining industry databases
• Enhancing internal and external communications

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INTERTANKO Today

• FOCUSED WORK PROGRAMME
• REGULAR ENGAGEMENT
• At IMO and IOPC ( respective work groups)
• With EU Commission, Parliament and Council
• With capitals / national governments
• With USCG and other national administrations
• With Round Table colleagues (BIMCO, ICS,
  Intercargo) and national shipowner associations
• With other industry associations IACS, OCIMF,
  IG (PI), IBIA, ISU, IMPA, IAPH, etc. and
  partners in chain of responsibility
• With oil companies
• With international shipping and non-shipping
  media
• With researchers, brokers and analysts

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Latin America Panel

• Challenges for the Tanker Industry

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INTERTANKOS VISION FOR THE TANKER INDUSTRY

• A responsible, sustainable and respected Tanker
  Industry, committed to continuous improvement and
  constructively influencing its future.

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Realising the Vision

• Challenge 1
• To be recognised as being responsible and to be
  respected.

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Responsible and Respected means meeting
societys expectationsof the tanker shipping
industry

• Safe and secure
• Environmentally responsible
• Reliable
• Efficient (Low cost)

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Development of oil spills
Source ITOPF. Number of spills above 700 tonnes.
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Continuing Improvement
Tanker accidental pollution rate tonnes spilt
per bn tonne miles trade
-38
Source ITOPF spills, Fearnleys Tonne miles
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Reported tanker incidents (1978 2005)
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Learning from Tanker incidents 2005
Total 161
Hull Machinery
dwt range Total
Below 10,000 69
10-29,999 34
30-99,999 40
100,000 18
Total 161
   
Age Total
Built 1970s 25
Built 1980s 51
Built 1990s 56
Built 2000s 29
Total 161
29 engine, 3 hull
Misc.
Fire Exp.
Grounding
Collision
includes contact
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Reliable regularity of supply
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Oil price and tanker freight rate1970-2006
Freight rate and oil price (USD/bbl) deflated by
the US consumer price indexOil price 2006 is
approx price end April and not average price for
the year.
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Societys Expectations

• ZERO tolerance of
• Accidents
• Pollution (to Sea and Atmosphere)
• Other (e.g. unsafe, unhealthy demolition)

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INTERTANKOs goals to meet Societys Expectations

• INTERTANKO MEMBERS will
• lead the continuous improvement of the Tanker
  Industrys performance in striving to achieve the
  goals of
• - Zero fatalities
• - Zero pollution
• - Zero detentions

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Challenges for the Tanker Industry Ballast
Water Management
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Challenges for the Tanker IndustryAir Emissions
- Engine and Cargo (VOCs)
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Challenges for the Tanker Industry Ship
Demolition Industry Code to IMO Convention
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Challenges for the Tanker Industry The Human
Element - Our weakest link ?

• Supporting IMO Task Force
• Participating in ISM STCW Reviews at IMO
• Established Human Element task force as outcome
  of inter-industry group investigation of chemical
  carrier accidents
• Established new INTERTANKO Working Group
• Concentration away from hardware issues to, inter
  alia
• Man-machine interfaces (design operation)
• Measures to promote compliance
• Reviewing industry guides procedures
• Encouraging confidential and near-miss reporting
• Gathering incident statistics
• Recruitment and retention issues

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Challenges for the Tanker IndustryImproving
communication

• Heightening awareness
• Increasing transparency
• Providing information
• Widening dialogue
• www.shippingfacts.com
• Maritime Industry Foundation

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The image ? Perception vs Reality
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Tanker Industry
Image - In the dictionary between ignorance and
information
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Realising the Vision

• Challenge 2
• Commitment to Continuous Improvement

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Commitment to Continuous Improvement by all
stakeholders in the maritime businesses
Designers
Shipbuilders
Class
Equipment Suppliers
Financiers / Guarantors
Charterers
Operator/Manager
Owner
PI
Hull insurers
Cargo Owners
Brokers
Flag states
Coastal States
Waterways authorities
Ports Terminals
Labour providers
Tug operators
Bunker suppliers
Pilots
Agents
Salvers
Repairers
Paint Suppliers
Spill Response
Ship Breakers
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POSEIDON CHALLENGESingapore (31 March 2006)

• POSEIDON CHALLENGE
• - STRIVING FOR
  ZERO
• The Poseidon Challenge is an invitation to all
  participants in the Chain of Responsibility to
  join INTERTANKO members in a sustained commitment
  to CONTINUOUS IMPROVEMENT. It is founded upon
  the principle that the shared goals of zero
  accidents, cleaner seas and the elimination of
  the sub-standard can best be achieved by
  voluntary, cooperative and self motivated
  efforts.

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Realising the Vision

• Challenge 3
• Constructively influencing own future

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• Challenges for the Tanker Industry
• Uniform high standards globally
• Uniform international governance structures

• To engage with others
• At IMO and with states to develop and implement
  effective regulation
• With flags support for flag state audits,
  industry performance guide
• With class development of Common Structural
  Rules
• With builders tripartite discussions
• With insurers following up on OECD report, IOPC
  WG
• With PSC through EQUASIS and individual MoUs
• And much more..

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Challenges for the Tanker Industry Regulation
versus Self-Regulation

• The challenges are to achieve
• effective regulations and
• the right balance between regulation and
  self-regulation

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Challenges for the Tanker Industry Encouraging
Effective Regulation

• Fit for purpose (provides solutions)
• Properly considered (stakeholders involved)
• Impact(s) assessed
• If adopted, implemented uniformly and promptly
• Engaging with legislators, regulators,
  politicians and the media

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Challenges for the Tanker Industry Developing
and Promoting Self Regulation

• Adoption of best practices
• Production of industry guidelines
• Development of awareness guides
• Engaging with partners, legislators, regulators,
  politicians, media and public

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Regulation and/or Self-Regulation Example
actions on illegal discharges

• Reception facilities Industry-government forum
  (Industry, IMO and EMSA)
• Industry Guidance on Use of Oily Water Separators
  and Completion of Oil Record Book
• Preparing Guide for treatment of engine room
  wastes including means to limit generation of
  waste, better management of waste, better design
  and sizing of equipment, (revisions to Marpol),
  and additional training

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Latin America Panel

• Unfair treatment of seafarers
• Unjustifiable criminalisation

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Unfair treatment of seafarers violation of
human rights

• Too many cases of unlawful
• detentions after shipping
• accidents (Orapin Global,
• Evoikos, Nissos Amorgos, Prestige, Tasman
  Spirit et al)
• Welcome for the joint IMO/ILO Group on Fair
  Treatment of Seafarers
• Too many other unjust practices unjustified
  fines, denial of shore leave, prohibition of
  terminal access and more

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Unjustifiable criminalisation

• Criminal sanctions for ship-sourced pollution
• INTERTANKO condemns illegal discharges
• INTERTANKO objects to criminalising accidental
  pollution
• Need clarity in law AND consistency with
  international law
• Penalties should be proportionate AND have parity
  with other similar offences (ashore)
• Suspects must be treated fairly AND in accordance
  with basic human rights
• States should comply with their obligations to
  provide reception facilities AND Places of Refuge
  

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Unjustifiable criminalisation

• Counterproductive consequences not recognised
• Destroys no blame cultures
• Discourages openness and frank reporting
• Curtails surveyors reports detracts from good
  practice
• Deters salvors in circumstances when we need them
  most
• Deflects focus for proper casualty investigation
  and denies benefits of same
• Destroys and damages morale of seafarers and
  others
• Dissuades new recruits and accelerates departure
  of experienced staff
• Drives responsible people and companies from the
  business
• Is this what the legislators and society are
  seeking ?

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Unjustifiable criminalisation

• EU Action in the High Court in London to test
  the validity of the 2005 EU Directive on Criminal
  Sanctions for Ship-Source Pollution and seeking a
  reference to the European Court of Justice
  criminalises accidental pollution, conflicts with
  existing treaty law obligations under Marpol and
  UNCLOS, and fails to satisfy the principle of
  legal certainty
• CANADA Monitoring of Amendments to Migratory
  Birds and Environmental Protection Acts
  conflicts with Marpol and UNCLOS obligations, is
  vicarious and includes a presumption of guilt
  before trial for accidental pollution

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Unjustifiable criminalisation

• EU Action
• Coalition partners Intercargo, Greek Shipping
  Cooperation Committee, Lloyds Register and
  International Salvage Union with financial and
  moral support from many others.
• Seeking referral to the European Court of Justice
  for a ruling
• 1 March 2007 enactment in EU states

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Unfair treatment of seafarers Unjustifiable
criminalisation

• Conclusions
• We are not perfect AND are not complacent
• Unjustifiable criminalisation concerns us all AND
  is NOT THE SOLUTION
• Fair treatment (especially after an accident) AND
  the detrimental consequences of unjustifiable
  criminalisation MUST be spelled out clearly
• This is NOT about confrontation but about
  reality !

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THANK YOU www.intertanko.com www.shippingfacts.co
m www.themaritimefoundation.com