Peter M. Swift

- representing representing responsible oil and responsible oil and chemical tanker owners chemical tanker owners worldwideworldwide

- promoting Safer Ships, promoting Safer Ships, Cleaners Seas and Free Cleaners Seas and Free CompetitionCompetition

-strict membership strict membership criteria based on quality criteria based on quality and performanceand performance

The The International Association of Independent Tanker OwnersInternational Association of Independent Tanker Owners

INTERTANKO INTERTANKO todaytoday• 245 (+/-)245 (+/-) Members Members• 2,2,050050 tankers tankers• 155155 million dwt million dwt • Average age: 13.5 yearsAverage age: 13.5 years• 280(+/-) 280(+/-) Associate MembersAssociate Members• 25 Staff /25 Staff / 8 Consultants8 Consultants

Oslo London Singapore Washington

Tankers in Troubled Waters

Again !

Prestige

Prestige

Prestige

                                                  

                                      

Prestige

The world expects us to have 0 accidents

It takes one accident to change the industry

TODAYTODAY

Annual incidence of accidental tanker spills 1990-2001

Source: ITOPF

Annual quantity of oil lost from tanker accidents 1990-2001 (‘000 tonnes)

Source: ITOPF

Tonnes spilt Tonnes spilt per billion tonne-mile transportedper billion tonne-mile transported

0

10

20

30

40

50

90 91 92 93 94 95 96 97 98 99 00 01

Prestige : Not the last word !

Background and incident

Issues for tanker industry: Accident investigation Places of Refuge Detention of master Unilateral measures – heavy oil

restrictions, accelerated phase-out Other reactions

Tanker fleet double-hull development

Source: INTERTANKO

622

51

75 81

9478

49

25 19

0

20

40

60

80

100

1991 1997 End 02 End 07 End 10

SH share (%)

DH share (%)

Single-hull tanker phase-out comparision IMO 13G – EU proposal

Ship Recycling

                     

                                    

AS AN INDUSTRY WE MAY NOT BE LOVED BUT WE ARE NEEDED

• World Oil World Oil Consumption Consumption 3,590 mil ts3,590 mil ts

• Transported by sea Transported by sea 2, 0152, 015 mil tsmil ts

• 5757% transported by sea.% transported by sea.

Freight rates and oil price per barrel

0

10

20

30

40

50

60

70

80

70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00

Nominal Arabian Light

Deflated Arabian Light

Nominal freight rates

Deflated freight rates

Source: INTERTANKO, IEA

Tanker Industry: Reality

OWNER CHARTERER CLASS

IMAGE PROBLEM !

The Rogues of the Tanker Industry

SHIPBROKER

BUT EVEN WORSE IMAGE !

But - the Pirate is still a hero to many

Tanker Issues

Shipping standards

The good, the bad and … all legitimate

Tanker Issues

Shipping standards

Environmental concerns

Some of the more sensitive areas

Tanker Issues

Shipping standards

Environmental concerns Security issues

Limburg - Yemen, 2002

Critical Oil Movements Security Concerns

Straits of Hormuz 15.5 mbd (14 mbd crude)

Malacca Straits 10 -12 mbd

Red Sea 3.3 mbd

Sumed pipeline 2.2 mbd

Bosporous/Turkish Straits 1.6 up to 2.3 mbd

Druzba / ”Friendship” pipeline 1.2 mbd

Ceyhan pipeline 1.1 mbd

Suez canal 0.9 mbd

Panama canal and pipeline 0.5 mbd

Tanker Issues

Shipping standardsEnvironmental concernsSecurity issues

Liability and criminalisation

Challenges to international law and governance

Tanker Issue

Supply - Demand Balance

and The Market

Tankers in Troubled Waters ?

Tanker industryTanker industry : : Responsibility ChainResponsibility Chain

SHIPOWNER

SHIPYARDS

INSURERS

PILOTS

CARGO OWNER

CHARTERER

PORTAUTHORITIES &

TERMINALS

CLASSSOCIETIES

FLAG STATES

Working together we can make a difference

TakkThank you

www.intertanko.com