Leading the way; making a difference INTERTANKO Annual General
Meeting Lagonissi 20 th May 2015 International Association of
Independent anker Owners
Slide 2
Leading the way; making a difference
INTERTANKOsPaymentPerformanceSystem Bill Box Senior Manager
Communications & External Relations INTERTANKO AGM Lagonissi 20
May 2015
Slide 3
Leading the way; making a difference Payment Performance
System
Slide 4
INTERTANKO tanker sustainability Practical
commercial/operational assistance to Members with arguments that
work in all markets, bad and good: Unbalanced, eroded c/p terms and
inconsistent, subjective vetting practices Delays in freight and
demurrage settlement *hit owners cashflow *increase owners working
capital reqt
Slide 5
Leading the way; making a difference Sustainability Project
ty
Slide 6
Leading the way; making a difference Sustainability Project
Contractual obligations NOT met Freight payable on completion of
discharge Pilot study: Typical 6-8 days Demurrage payable on
receipt owners invoice Pilot study: Typical over 110 days
Slide 7
Leading the way; making a difference Sustainability Project
Ultimate Aim: to change ingrained bad habits
Slide 8
Leading the way; making a difference
Slide 9
Payment Performance System (PPS) What does this mean for you?
10 ship fleet Each fixing once a month 5% cost of funds Average F
& D amounts per pilot study Typical payment delays per pilot
study > $450,000 F&D payment delays cost > $450,000 a
year
Slide 10
Leading the way; making a difference PPS: Output and
Deliverables What you get What you get Top 20 best payment
performers Average delays in freight payments Average delays
submitting, negotiating, paying demurrage claims Comparison between
charterers Comparison between different tanker types Cost of late
payments
Slide 11
Leading the way; making a difference PPS Data needs What you
give What you give Basic info: Vessel + charterer Voyage dates
Freight/Demurrage $$ F & D invoices sent & settled
dates
Slide 12
Leading the way; making a difference S o w h a t ?! This data
enables INTERTANKO to raise its head above the parapet on behalf of
its Members and challenge charterers with their poor
performance
Slide 13
Leading the way; making a difference Payment Performance
System
Slide 14
Payments Performance System
Slide 15
Leading the way; making a difference Payments Performance
System
Slide 16
Leading the way; making a difference Payments Performance
System
Slide 17
Leading the way; making a difference Payments Performance
System
Slide 18
Leading the way; making a difference PPS needs your
participation 32 Members have agreed to participate or are
preparing data or have actually submitted and entered data Over
2,600 datapoints in so far We will assist your post-fixture staff
PPS participants may note on f & d invoices
Slide 19
Leading the way; making a difference Rescue of Migrants at Sea
Dr Phil Belcher Marine Director INTERTANKO AGM Lagonissi 20 May
2015
Slide 20
Leading the way; making a difference Rescue of migrants- Scale
of the problem 2014: 882 ships diverted 254 rescue operations
42,000 rescued INTERTANKO members- c500 per week 2015: UN estimate
a doubling of numbers
Slide 21
Leading the way; making a difference Tankers- The safety
concern Embarkation problems Ratio of crew to migrants Security
Carrying sources of ignition No comprehension of safety Belief they
are now safe
Slide 22
Leading the way; making a difference Main issues Medical care
Food and water Sanitation Rest area Security Rapid
disembarkation
Slide 23
Leading the way; making a difference Advice
Slide 24
Leading the way; making a difference Piracy Dr Phil Belcher
Marine Director INTERTANKO AGM Lagonissi 20 May 2015
Slide 25
Leading the way; making a difference Attacks in 2010
Slide 26
Leading the way; making a difference Attacks in 2014
Slide 27
Leading the way; making a difference Gulf of Aden and Indian
Ocean No attacks (3 years since last) Few suspicious approaches But
intent and means remain Only opportunity removed Naval force
reduction post 2016
Slide 28
Leading the way; making a difference HRA Name proposed to be
changed to: Piracy Risk Area Push to change in Red Sea Some
flexibility in negotiations Any changes with RT
Slide 29
Leading the way; making a difference GoG 2014
Slide 30
Leading the way; making a difference Threat to tankers
Critically exposed sector Extreme vulnerability Lack of faith in
security Unable to self-protect Continue to work with region and
others Continue to recommend MTISC-GoG
Slide 31
Leading the way; making a difference
Slide 32
SE Asia Attacks on small clean product tankers Joint naval
patrols in operation Working with various agencies and coastal
States Will develop RT advice on anti-piracy
Slide 33
Leading the way; making a difference Next steps- World Wide
Piracy Rewriting of BMP Global BMP Common areas Regional annexes
Must reflect reality
Slide 34
Leading the way; making a difference Cyber Security Both overt
attacks and operational failures New area of regulation RT
developing guidance Plan for this to be base doc in IMO
Slide 35
Leading the way; making a difference Vetting Ajay Gour Senior
Manager Vetting & Chemicals INTERTANKO AGM Lagonissi 20 May
2015
Slide 36
Leading the way; making a difference Overview of VC
Slide 37
Leading the way; making a difference Inspections & Audits
Numbers & Costs Inspector Stds VIQ - Guidance Inspector
Availability TMSA Revision Vetting Policies Transparency Officer
Matrix Terminal Inspections Maiden Voyages Incident Reports Vetting
Issues
Slide 38
Leading the way; making a difference Close cooperation with:
OCIMF SIRE Focus Group CDI PSC MoUs Other stakeholders
Slide 39
Leading the way; making a difference INTERTANKO Initiatives:
Benchmarking Platforms Ship Inspection Feedback Forms Seminars
& Training Publications
Slide 40
Leading the way; making a difference Reducing Greenhouse Gas
Emissions from Ships Dragos Rauta Technical Director INTERTANKO AGM
Lagonissi 20 May 2015
Slide 41
Leading the way; making a difference EFFICIENCY OF SHIPS IN
OPERATIONS The Concept: Three phase-in legislation Phase I data
monitoring, reporting and verification; Phase II trial period for
verification of enforceability of the set target Phase III
enforcement The Proposals: IMO by: USA, Japan, Germany and EC/EMSA
EU Monitoring, Report and Verification (MRV) regulation All ships
> 5,000 GRT calling to EU ports, reporting CO 2 emissions when
ships travel: between EU ports, an incoming and outgoing voyage
between an non-EU and an EU port Monitor ships average energy
efficiency at least with the following criteria: Total annual CO 2
emissions / total annual distance travelled Total annual CO2
emissions / total annual transport work
Slide 42
Leading the way; making a difference EU PROPOSED REGULATION on
MRV Dates for implementation EU MRV: 1 st July 2015 enter into
force 31 st August 2017 companies should submit to verifiers
Monitoring Plan 1 st January 2018 starts first annual reporting
period 2019 and after by 30 th April each year, companies shall
submit a verified emissions report to the EU Commission and to the
Flag State by 30 th June each year, the EU Commission will make the
emissions reported by ships publicly available... Awaiting for the
IMO development.....
Slide 43
Leading the way; making a difference No policy decision taken
yet voluntary, mandatory... ? Developed text for possible amendment
to MARPOL Annex VI Agreed: Application all ships > 5,000 GRT
Report: Total annual fuel consumption, by fuel type To be decided:
Transport Work and/or Proxies such as distance travelled, service
hours, cargo weight/volume Verification of data submitted possible
guidelines If mandatory Certification and role of PSC possible
guidelines Confidentiality GHG EMISSION REDUCTIONS - IMO
Slide 44
Leading the way; making a difference ~ 180 mt CO 2 ~ 0.5% of
global CO 2 IMPACT ANALYSIS OF THE MANDATED IMPROVEMENTS
Slide 45
Leading the way; making a difference Terminal Conditions of Use
Dragos Rauta Technical Director INTERTANKO AGM Lagonissi 20 May
2015
Slide 46
Leading the way; making a difference TERMINALS CONDITION OF USE
(CoU) DOCUMENTS... neither XXX (i.e. Terminal), its co-venturers,
their parent companies, subsidiaries, or affiliates, nor its or
their servants, agents or contractors in whatever capacity they may
be acting shall be in any way whatsovere responsible or liable for
any contribution with respect to any loss, personal injury,
including death, damage or delay, from whatsoever cause, including
the negligence of XXX or its servants, co-venturers, agents
contractors arising whegther directly or indirectly in consequence
of any assistance, advice or instructions whatsoever given or
tendered in respect of any Vessel.... In all circumstances the
Master of any Vessel shall remain solely responsible on behlaf of
his or her Owner(s)...
Slide 47
Leading the way; making a difference TerminalTerminal
OperatorCountry - PortTerminal COU Ref NrTerminal BookletLaw &
Jurisdiction CLOV AngolaTOTAL EXPL. ANGOLAAngolaN/ACLOV QA 002
REV03 Rev. 06/14 MONTANA VENTUREPTTEPAustraliaYes -
MV-OP-D32-808318N/A FPSO CIDADE DE ANCHIETASBM do Brasil Ltda -
PETROBRASBrazilAppendix 11 - Issued: 02/10/20 12N/AEnglish law -
London Arbitr. FPSO CIDADE DE PARATYSBM do Brasil Ltda -
PETROBRASBrazilAppendix 11N/AEnglish law, - London Arbitr. FPSO
CAPIXABA SBM Golfinho operacoes Maritimas Ltds, SBM Espirito Do Mar
Inc. - PETROBRAS BrazilAppendix 12 ISSUE NO 2 Issued: 1/6/12N/A
English law, London Arbitration BruneiBRUNEI SHELLNation of Brunei
Conditions of berthing and unberthing services N/A Sonara - Limbe
CameroonYes / NO REF NRN/A NTL offshoreIMTT-NTL Ltd.Canada -
Whiffen HeadRef: 1120.29 - June 2013 - ev TR0020N/A OCENSA
TLU2ECOPETROL S.A./OSENSAColombia - CovenasJuly 2010 - 8th
EditionN/A JUBILEETULLOW OILGhanaRev.4-31/5/12 TGL-OPS-MAN-10-0002
Rev.4-31/05/12 English Law High Court of London VOTL
VadinarESSARIndiaYes - REV.:02- JAN-12 - VOTL/SPM/003N/A Butinge
SPMAB MAZEIKIN NAFTALithuania - ButingeAppendix 2 - REVISION GN/A
Agbami offshoreCHEVRONNigeriaYes / NO REF NRN/A Usan offshoreEsso
Exploration and Production Nigeria LimitedNigeriaAppendix E/D NO
REF NRN/A Qua Iboe offshoreMOBIL PRODUCTING IGERIANigeriaN/ARef: N.
0791 (02-02) Bonga offshoreSHELLNigeriaN/ARef: OPRM-2003-0105 Ver
EBOC NigeriaYes - EBK/TH/001 REV.03N/A OKWORISINOPEC/ADDAX
PETR.NigeriaRevision 05-2009N/A UkpokitiSHEBAH EXPLORATION &
PRODUCTION Co. LtdNigeria - Trinity Spirit30/04/2005 Rev 1N/A
Oceanido Galp LecaGALP ENERGIA, PETROGALPortugal - LeixoesPMarch
2014 - Rev 06N/A South Riding Point SSRPSTATOIL (Bahamas)Bahamas -
South Riding PointYes / NO REF NRN/A AMT - YANBUSAUDI ARAMCOSaudi
ArabiaYes / NO REF NR RAS TANURASAUDI ARAMCOSaudi ArabiaYes/ NO REF
NRN/A CBM CASTELONBPSpainN/ARev. No 6 March 2013
Slide 48
Leading the way; making a difference Ballast Water Management
Tim Wilkins Senior Manager Environment. Regional Manager Asia
Pacific INTERTANKO AGM Lagonissi 20 May 2015
Slide 49
Leading the way; making a difference 1. 1.IMO 1. 1.Where we are
today 2. 2.MEPC 68 Report 2. 2.US 3. 3.Ballast Water Technology
approvals Ballast Water Management Outline
Slide 50
Leading the way; making a difference Ballast Water Management
Convention Adopted in 2004 Entry into force requires ratification
by 30 countries, 35% worlds grt Currently, 44 countries, 32.86% grt
Bahamas, China, Greece, Malta, Panama, Singapore or UK, each alone
could bring the convention into force Argentina and Italy in the
process 34.2% Ballast Water Management 1.1 IMO: Where we are
today
Slide 51
Leading the way; making a difference Ballast Water Management
1.1 IMO: Where we are today Ballast Water Management Convention
MEPC 64 INTERTANKO et al. submission: THREE key challenges: 1.
1.Logical implementation schedule for the Convention 2. 2.Balanced
procedures for port State control 3. 3.Guidelines for approval of
ballast water management systems (G8)
Slide 52
Leading the way; making a difference Ballast Water Management
1.Logical Implementation schedule Assembly Resolution A.1088 (28)
adopted, Dec 2013 recommends governments: 1. 1.implement the
Convention based on the entry into force date of the Convention 2.
2.considers ALL vessels constructed before entry into force as
existing vessels 3. 3.existing vessels to install a BWMS at the
first renewal survey (IOPP Certificate under Annex I of MARPOL)
after entry into force of the Convention 1.1 IMO: Where we are
today
Slide 53
Leading the way; making a difference Ballast Water Management
2.Balanced Port State Control Procedures Trial Period (initially
for 3 years) following entry into force During this period, port
states will refrain from detaining a ship or initiating criminals
sanctions in the event a BWMS does not meet the discharge standard
(USA reserved position) Sampling only after clear grounds and any
indicative sample should not form the basis for a decision on
compliance 4 Stage approach: 1. 1.Initial inspection 2. 2.More
detailed inspection 3. 3.Indicative sampling 4. 4.Detailed sampling
1.1 IMO: Where we are today
Slide 54
Leading the way; making a difference Ballast Water Management
3. Guidelines for approval of ballast water management systems (G8)
Better quantity and quality of information with increased
transparency (Resolution MEPC.228(65), BWM.2/Circ.43, BWM.2/Circ.33
and BWM.2/Circ.28) MEPC Resolution (adopted MEPC 67): Commence a
review and revision of the type approval guidelines (G8) taking
into account all the industry concerns Also take into account the
US approval procedures and standards Protection for early-movers :
those owners whove installed BWMS approved to current G8 Reminder
of the PSC trial period Details of Grandfathering discussed at MEPC
68 1.1 IMO: Where we are today
Slide 55
Leading the way; making a difference Ballast Water Management
MEPC 68, May 2015 1. Completed revised G8 Guidelines? Ongoing but
not likely to be completed until end-2016 2. Indication of extent
of Grandfathering - protection of early movers? shipowners that
have installed BWMS approved to the current type approval
guidelines should not be required to replace these systems once the
new guidelines are introduced if current BWMS are installed,
maintained and operated correctly then they should not be required
to be replaced for the life of the ship or the BWMS, whichever
comes first, due to occasional lack of efficacy early movers should
not be penalized (sanctioned, warned, detained or excluded) solely
due to the occasional lack of efficacy of the BWMS 1.2 IMO: MEPC
68
Slide 56
Leading the way; making a difference US Coast Guard Final
regulations issued March 2012 (effective 21 June 12) Main
requirements include: BWE prior to discharge in US waters BWM Plan:
reporting and record keeping (fouling management as well) BWM
discharge standard (same as IMO), review in 4 yrs Compliance
schedule (similar to IMO), (no intent to align schedule with IMO)
Acceptance of Alternative BWMS for 5 years BWMS not required if no
discharge in US waters (12 nautical miles) Ships may request an
extension to compliance date for installation of USCG TA BWMS 2. US
Ballast Water Management
Slide 57
Leading the way; making a difference US Coast Guard -
Implementation Schedule Decision Tree 2. US Ballast Water
Management
Slide 58
Leading the way; making a difference US Ballast Water Decision
Tree
Slide 59
Leading the way; making a difference US Coast Guard -
Implementation Schedule Decision Tree Model Extension Request (MER)
Letter Still in use and still relevant! 2. US Ballast Water
Management
Slide 60
Leading the way; making a difference US Coast Guard - Extension
Requests January 1, 2016 extension date given to ships whose
drydocking was scheduled for 2014 January 1, 2017 extension date
given to ships whose drydocking was scheduled for 2015 Extensions
for ships with drydockings in 2016 being considered Availability of
USCG approved BWMS will be a factor in determining the length of
time for future extensions INTERTANKO has developed Model Extension
Request (MER) letter for members wishing to request extension 2. US
Ballast Water Management
Slide 61
Leading the way; making a difference US Coast Guard BWMS
Approvals CG has advised that 17 BWMS manufacturers have submitted
Letter of Intent to pursue USCG approval (54 AMS accepted by USCG)
For proprietary reasons, USCG cannot tell who those BWMS
manufacturers are INTERTANKO has contacted BWMS manufacturers to
determine which of them have submitted Letter of Intent (results on
INTERTANKO web site) Only after the testing is completed and the
results have been evaluated, will a BWMS manufacturer then submit
an application to the USCG for approval of their BWMS 2. US Ballast
Water Management
Slide 62
Leading the way; making a difference 4 independent laboratories
authorised Testing is fully independent and on market-ready BWMS
Ballast Water Management 3.Ballast Water Technology - approvals
USCG Accepted Laboratory Sub LaboratoryCountry NSF International
MERC, GSI, Retlif, American Bureau of Shipping; Curtis Strauss LLC
(BWMS) USA DNV GL AS DHI-Denmark, Golden Bear Facility, Applica,
DELTA-Denmark (BWMS) Norway Korean Register of Shipping (KR)
KOMERI, KTL, SGS Giheung LabRep. of Korea Control Union
Certifications BV IMARES, NIOZ, GoConsult, Dr. Matej David Consult,
TNO Netherlands
Slide 63
Leading the way; making a difference Ballast Water Management
3.Ballast Water Technology US approvals? 1. 1.NK 03 2.
2.Coldharbour Marine 3. 3.Erma First BWTS 4. 4.RWO Cleanballast 5.
5.Hyde Guardian (UV) 6. 6.Techcross Electrocleen 7. 7.Samsung
Purimar 8. 8.Trojan Marinex (UV) 9. 9.Evoqua SeaCure BWTS 10.
10.NEI Venturi Oxygen Stripping 11. 11.Optimarine OBS EX (UV) 12.
12.Oceansaver Mk II 13. 13.Wartsila Aquarius EC 14. 14.Severn Trent
Balpure 15. 15.DESMI Ray Clean (UV) 16. 16.Alfa Laval Pureballast
(UV) 17. 17.??
Slide 64
Leading the way; making a difference Ballast Water Management
3.Ballast Water Technology - approvals The dilemma: Currently no
BWMS is USCG type approved Ship operator must decide to: 1.
1.install AMS (and hope it gets USCG approval) OR 2. 2.request an
extension and wait until there is a CG approved BWMS BUT what if
Convention enters into force before we have a CG approved
BWMS?
Slide 65
Leading the way; making a difference Thank you INTERTANKO AGM
Lagonissi 20 May 2015