INTERTANKO International Association of Independent Tanker Owners

Leading the way; Making a difference

INTERTANKOInternational Association of Independent

Tanker Owners

Singapore MeetingsMay 2012

DMDs Overview:Association Finance

Priorities + Strategic Plan

Katharina StanzelDeputy Managing Director

INTERTANKO


Financial Statements 2011

• E&Y Audit successfully completed• Operating income: US$ 200k above budget

publications/ tanker event/ membership up• Operating expenses: ~5% below budget

tight cost control, reduced travel, lower representation expenses

ExCom reimbursement 50% only• Result for the year just under US$ 955k

=> Cash Reserve 31.12.11 US$ 7 036 507


2011 Figures (US$)

2011 2011 2012 (Actual) (Budget) (Budget)

Operating Income 7,753,228 7,572,650 7,401,925

Operating Expenses -6,886,593 -7,217,450 -7,373,997

Operating Result 866,635 355,200 27,928

Non-operating Income/expenses 87,303 -25,000 -25,000

Result for Year 954,938 330,200 2,928


2012 BUDGET

2010 membership fees -10%

No change in 2011 membership fees

2012 membership fees -5%


BUDGET (US$)

2011 2011 2012 (Actual) (Budget) (Budget)

Operating Income 7,753,228 7,572,650 7,401,925

Operating Expenses -6,886,593 -7,217,450 -7,373,997

Operating Result 866,635 355,200 27,928

Non-operating Income/expenses 87,303 -25,000 -25,000

Result for Year 954,938 330,200 2,928


Outstanding Fees 8. May 2012

Members: 58 US$ 1 253 378Assoc. M.: 82 US$ 236 586FDIP: 14 US$ 20 160

Total 154 US$ 1 490 024


Five Year Strategic PlanScenario Planning

Macro Environment Analysis

INTERTANKO

Political

Socio-Cultural

Environmental

Technological

Economic

Macro-environment

Political

Global Economic Shift of Powers

-China/ India/ Brazil- Europe failing

Free market distortions- Regional

Protectionism

Regulatory Environment politicised - Regional regulation

- Sanctions etc.

Security Issues (Piracy)

EconomicMarket Dynamics(Fleets, Cargos,

Finance)Tonne mile demand

Fuel availability/ cost

Growing national protectionism

Growth of national fleets/ interests

Environmental

Globalised Concerns, e.g. Ballast Water

Nox, Sox, PM, GHG

TechnologicalCompliance options

through technology

Availability of abatement/

treatment tec.

Availability of FuelsLNG

Distillates

Socio- cultural

Human Resourc

es:

- Availabil

ity/ Recruitment

- Compet

ency-

Training

Expectations from

Legislat

ors

Politicians

Public

Overregulation

Political decision making

Need for

Cooperation with other

associations/ orgs

65

3

1

4

2

Markets Good

Markets Bad

Geopolitics unstable

Geopolitics stable

EnvironmentalConcern

Reasonable

Envl. ConcernExtreme 8

5 6


Scenario Market Conditions

Geo-political Environment

Environmental Concern

1 Dark Green good stable extreme

2 All hands on deck good unstable extreme

3 Lay-up bad stable extreme

4 MAYDAY bad unstable extreme

5 Full Ahead good stable reasonable

6 Privateers ahoy good unstable reasonable

7 Customer is King bad stable reasonable

8 Hard aground bad unstable reasonable

Markets Bad

Market: goodGeopolitics:

uncertainEnvironmental

Concern: extreme

Market: goodGeopolitics:

uncertainEnvironmental

Concern: extreme

Markets Good

Geopolitics unstable

Geopolitics stable

Scenario Market Conditions

Geo-political Environment

1

- Global fleet capacity matches global demand- Economic growth + oil demand stable- Regulatory Environment workable- Political stability in oil producing regions- Global security risks to shipping manageable

good stable

2

- Global fleet capacity matches global demand- Economic growth + oil demand stable- Regulatory Environment workable- Political instability in oil producing regions- Regionalised political issues (e.g. sanctions/regulation)- Lack of coherent approach to security risks (piracy etc.)

good unstable

3- Global fleet capacity exceeds demand- Regulatory Environment exceedingly stringent/ difficult to comply with/ regionalised- Political stability in oil producing regions- Global security risks to shipping manageable

bad stable

4

- Global fleet capacity exceeds demand- Regulatory Environment exceedingly stringent/ difficult to comply with/ regionalised- Political instability in oil producing regions- Regionalised political issues (e.g. sanctions/regulation)- Lack of coherent approach to security risks (piracy etc.)

bad unstable


Strategic Objectives

• To develop and promote Best Practices in all sectors of the tanker industry, with owners and operators setting the example. (BP)

• To be a positive and proactive Influence with key stakeholders, developing policies and positions, harmonising a united industry voice and engaging with policy and decision makers. (I)

• To profile and Promote the Tanker industry, communicating its role, strategic importance and social value. (PT)

• To provide key Services to Members with customised advice, assistance and access to information, and enabling contact and communication between Members and with other stakeholders. (S)


Major Issues

• Greenhouse Gas Emission Reductions• Air Emission Reductions• Ballast Water Management• Global Maritime Security Threats• Tanker Safety & Performance• Sustainability• Human Element


Major Issues & Desired Outcomes

Greenhouse Gas Emission Reductions

• Members’ new tankers meet/exceed, required EEDI and CO2 emission reductions targets

• Develop solid industry practices & monitoring system for GHG emission reductions from tankers in operation (in cooperation with other stakeholders such as OCIMF, allowing Members’ tanker fleets to achieve & demonstrate increases in efficiency

• IF legislation on MBMs to be implemented, support/ promote most practical & transparent alternative at IMO (not regional)



Air Emission Reductions

• Global switch to cleaner fuels• Members fully advised on best choices for compliance with ECA

requirements (and on how to assess and select scrubbers) • Revised EU Sulphur Directive aligned with MARPOL Annex VI



Ballast Water Management• Members able to achieve compliance with current and future

discharge standards (both regionally and internationally)



Global Maritime Security Threats

• Members suitably informed to protect vessels & crew from maritime security threats

• Key stakeholders develop policies & positions benefiting whole industry

• Members suitably informed of sanctions that affect their trading patterns and decisions


Tanker Safety & Performance• Members proactively positioned for top performance with

regard to safety & performance

Sustainability• Members have access to tools, models and information to

enable them to continue operating

Human Element• Members have access to tools, models and information to

enable them to continue operating




Greenhouse Gas Emission Reduction

Desired Outcome: Members’ new tankers meet/ exceed required EEDI values and CO2emission reduction targets

Tactics:• Advise and support members in complying and exceeding EEDI (S)• Create central database of EEDI values managed by INTERTANKO (PT)• Analyse collected data to assess level of compliance (BP, S, PT)• Report on results to members & other stakeholders e.g. to assist in

IMO’s review of EEDI compliance (BP,I,PT)• Liaise with Designers, Manufacturers, Charterers, other stakeholders to

drive developments for safe, cost effective, environmentally sound tankers (S)



Desired Outcome: Development of solid industry practices & a monitoring system for GHG emission reductions from tankers in operation, in cooperation with other stakeholders (e.g. OCIMF), allowing Members’ tanker fleets to achieve and demonstrate increases in efficiency

Tactics:• Create environmental performance database (S)• Analyse collected data for periodical assessment of members’ emissions

and efficiency improvements (BP,PT,S)• Report on results to members, regulators and other stakeholders in

order to demonstrate industry sector performance (BP,I,PT,S)• Communicate Industry’s environmental credentials and increases in

efficiency alongside its role in serving world trade (PT)



Desired Outcome: IF MBM legislation were to be implemented, support/ promote most practical & transparent alternative at IMO, not at regional level

Tactics:• Continue to monitor/ influence IMO, US & EU legislators and contribute

to rule development by providing information on the likely fleet-wide impacts of various MBMs (I, PT)

• Participate in the UNFCCC process alongside IMO where appropriate and beneficial (I,PT)


Air Emissions Reduction

Desired Outcome: [Global switch to use cleaner fuels] Should this policy decision continue to be pursued ?Tactic:Use opportunities, conferences, publications, articles to present advantages

of use of clean fuels as major factor in reducing air + GHG emissions (I)

Desired Outcome: Revised EU Sulphur Directive aligned with MARPOL Annex VI

Tactics:• Continue work with EU DG Environment and members of EU Parliament

and Council as well as other stakeholders to guide decision making (I)


Desired Outcome: Members fully advised to make right choices for compliance with ECA requirements (and on how to assess and select scrubbers)

Tactics:• Issue guidance to Members for compliance with ECA requirements (BP,S)• Issue list of critical issues members should investigate when assessing/selecting

scrubbers (incl. justifications and clarification of issues) (BP,S)• Gather feedback from Members on their decision making regarding ECA

compliance and experience with measures taken (BP)• Update INTERTANKO guidelines on Bunkering, Fuel Switching etc. (BP)• Ensure guidance and critical issue lists are continuously improved as experience

is gained either through additional information from manufacturers or feedback from members (BP,S)

• Monitor and liaise with refining industry with regard to changing refining processes and fuel availability issues and push to see global sulphur cap of 0.5% enforced in 2020. (I)

• Assess to the extent possible availability of adequate marine fuels (S)

Air Emissions Reduction


Ballast Water Treatment

Desired Outcome: Members able to achieve compliance with current and future ballast water discharge standards on a regional and international basis and remain compliant in future.

Tactics: Installation and Operation of BWTS• Provide Members with information on physical installation & operation of

ballast water treatment systems through knowledge sharing in relevant Committee meetings and through the Weekly News and Environmental Bulletins (BP,S)

• Based on the experience gained by members, develop and promote best practices on the installation and operation of BWTS through updates of the INTERTANKO Ballast Water Treatment Systems Guide (BP)

• Monitor and report on the progress of INTERTANKO’s members in meeting current ballast water discharge standards in order to positively and proactively influence any future amendments and changes to regional and international ballast water legislation (I,PT)


Tactics: Regulatory Focus (compliance and enforcement)• Engage with regional and national authorities with a view to promoting the

implementation of the International Ballast Water Convention as a single, international regulatory regime (I)

• Develop a comprehensive document outlining the various technical, practical and compliance challenges of installing and operating BWTS on tankers in order to positively and proactively influence the regulatory authorities responsible for developing the type approval and PSC enforcement processes for BWTS (I,PT)

• Promote a robust and practical type approval process adequate to ensure the compliance of the vessel once the system is installed on board (I,S)

• Positively and proactively influence the PSC compliance and enforcement process drawing particular attention to the need for uniformity and harmonization with the type approval process (I)

Ballast Water Treatment



Desired Outcome: Members suitably informed to enable them to protect their vessels and crew from maritime security threats.

Tactics:• Proactively engage in the debate on best practice, collate member

feedback and look for innovation which may lead to more secure vessels (BP,S)

• Provide clear advice on the most recent trends and best practice to members on request (S)

• Continue to develop and promote best practices and BMP guidelines as requirements evolve in cooperation with key partners, striving for a common voice (BP,I,S)

• Maintain the timely advice issued through the INTERTANKO Security Bulletins which are collated from key sources, but primarily UKMTO and ensure that lessons learnt from incidents are clearly shared with the membership (BP,S)



Desired Outcome: Key stakeholders positively and proactively influenced so that policies and positions are developed for the benefit of the whole Industry to ensure freedom of navigation.

Tactics:• Continue to participate in and contribute to the international

efforts to eradicate piracy. This includes work with the five UN WG’s for PCS, IMO, Industry partners, UKMTO, MSCHoA, NATO, EC, FCO/DfT (I,PT)

• Use feedback and firsthand experience from members at suitable speaking events to strengthen the Industry voice and ensure it is heard (I,PT)



Desired Outcome: Members suitably informed of international, regional and national sanctions that affect their trading patterns, to enable them to make informed decisions on lawful trade.

Tactics:• Monitor international, regional and national sanctions and

provide regular guidance to Members via Weekly News, targeted bulletins, and in response to individual questions (S)

• Work with key partners including the International Group of P&I Clubs and other shipping industry associations to ensure sanctions legislation is clear, workable and properly targeted (I)


Tanker Safety & PerformanceDesired Outcomes: INTERTANKO members proactively positioned as top

performers in terms of tanker safety and performance: zero fatalities, zero pollution, zero detentions

Tactics:• Develop guidance and best management practices with members and

other industry bodies on issues which are key to tanker safety & performance (BP,I)

• Provide information to members so that they have a clear understanding of the requirements set by IMO, regulators/ administrations, OCIMF, oil majors, charterers and class societies amongst others (S)

• Work with ship inspection organisations, oil companies and port state authorities to ensure that the global ship inspection and vetting regime is unified and streamlined resulting in fewer inspections per ship per year (BP,I,PT)


Tanker Safety & Performance

Tactics (contd):• Provide leadership on the development of guidance and best

management practices for key industry practices/ policies within industry bodies, national regulatory bodies and the IMO, to influence the development of regulations (BP,I,PT)

• Review tanker safety and performance databases and ensure that what is being measured is optimum and presented in the most useable format. Propose updates as necessary and promote a framework of continuous improvement (PT,S)

• Actively collate and promulgate the latest initiatives regarding tanker safety and performance to members within an open and positive feedback process (BP,S)


Sustainability

Desired Outcome: (Development and provision of tools, models and information to assist Members to continue operating) to be reviewed

Tactics:• Provide members with the most up-to-date tanker market information

on a regular basis (S)• Develop the optimal speed model (S)• Investigate alternative methods to handle additional bunker costs(I)• Expand Worldscale Committee mandate and task committee to engage

in discussions with brokers (S)


Human Element

Desired Outcome: No unfair treatment or criminalisation of seafarersTactics:• Develop Terms of Reference for Criminalisation Working Group and co-ordinate

Working Group to study criminalisation and effect on safety/recruitment• Enable best practice to be followed in reporting and investigation of incidents,

thereby enable lessons to be learned. • Raise awareness of criminalisation of seafarers and detrimental local laws and

judgments for all instances of criminalisation• Engage with governments / IMO to promote UNCLOS and MARPOL and to bring

national laws into line

Desired Outcome: Well trained, competent crewsTactics:


Key Focus Areas

Safety/Technical Seafarers Environment Marine Operations

Regulatory / Legal Information

Top priorities for 2012

Damage stability Inert gas

Shipyard standards Class standards

Fuel quality Mercury in crude

Criminalization Crew competence

Shore access Fair treatment of

Seafarers

GHG emissions Ballast water

Reception facilities Air emissions

Piracy Vetting

Port State Control Chemical

operations

Sanctions Limits of liability

insurance Oil spill

compensation

Tanker market Panel meetings

IO web page

Other work plan issuesTanker design

Structural Integrity Machinery/equipment

Fuel switching Safe tank entry Gas detection

Biofuels Cargo properties

Crew visas Seafarer ID docsAccommodation

sp. Cadet berthing

Ship recycling Anti-Fouling

Waste management

Noise pollution Response mgmt. Hull biofouling

Ship striking mammals

Loadlines off SA Lifesaving app

PilotagePort & TerminalsNavigation issues

Offshore operations

Ship/Ship transfer ISPS Code

Security OfficersShip sec alert sys

Accident investigations

Conflict in lawUNCLOS

LegislationCharter parties

FDIPDemurrageIntellectual

propertyWorldscale

Anti-corruption

Weekly NewsAnnual review/

reportPublications

PresentationsTanker statisticsIncident analysis

WorkshopsSeminarsBulletins

Global political/ economic

environment

Documents

INTERTANKO International Association of Independent Tanker Owners