CHINA OIL TRANSPORTATION SAFETY FORUM

The Human Element and Oil Shipping Safety

Beijing20 July 2010

Peter M Swift,MD INTERTANKO

The Human Element and Oil Shipping Safety

• Introduction – INTERTANKO• Introduction – Oil Shipping• Oil Shipping – Safety• Human Element• A Happy ship is a Safer ship

– Design– Operation– Seafarer Concerns

INTERTANKO Today

260 + members operating ca. 3,100 ships > 75% of the independent oil tanker fleet and > 85% of

the chemical carrier fleet

300 + associate members: in oil and chemical tanker related businesses

[With strict membership criteria]

15 Committees – 5 Regional PanelsPrincipal Offices – London and Oslo

Representative Offices in US, Asia and BrusselsObserver Status at IMO, IOPC, OECD and UNCTAD

International Association of Independent Tanker Owners

INTERTANKO’s Strategic Objectives

To develop and promote best practices in all sectors of the tanker industry, with owners and operators setting the example.

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.

To profile and promote the tanker industry, communicating its role, strategic importance and social value.

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.

                     

                                    

The world needs oil and oil tanker transportation

World Oil Consumption 3.8 billion ts

Transported by sea 2.4 billion ts

> 60% transported by sea

Oil shipping is safe

Based on ITOPF/FearnleysBased on ITOPF/Fearnleys

1000 ts spilt

0

700

1,400

2,100

2,800

3,500

1970s 1980s 1990s 2000s0

21

42

63

84

105

1000 ts spilt

'000 bntonne-miles

- 63% -3% -83%

1000 bn tonne miles trade

Accidental oil pollution from tankers

Oil shipping is reliable and environmentally responsible

With Goals aligned to those of the IMO

Oil shipping is cost effective

USD per barrel

0

20

40

60

80

100

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Nominal price Arab Light

Real price Arab Light

Nominal freight rate AG-WestReal freight rate AG-West

Deflated by the Consumer Price Index (USD)CPI* index 1982-84=100

Oil price and freight rate – real and nominal

Oil shipping is energy efficient

• This car, weighing one tonne, uses 1 litre of fuel to move 20 kms

• This oil tanker uses 1 litre of fuel to move one tonne of cargo 2,500 kms– more than twice as far as 20 years ago

BUT Oil shipping is not complacent – and is accustomed to being under the spotlight

Watched by:• Regulators• Politicians• Public

Licences to trade rigorously applied by:

• Flag states• Classification Societies• Insurers• Charterers

Monitored by:• Coastal and Port states

Oil Shipping Safety

Key components for safe oil shipping:

• Practical legislation and regulation - implemented on a consistent basis worldwide

• Well designed, constructed and maintained ships

• Owners and management committed to quality and adherence to industry best practices and standards

• Competent crews – properly trained, experienced and motivated

Underpinned by sound freight markets

Tanker Incidents and accidental pollution

Number incidentsNumber incidents

Based on data from LMIU, ITOPF + othersBased on data from LMIU, ITOPF + others

0

210

420

630

840

1050

78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09

0

120

240

360

480

600

Misc/Unknown Fire/ExplHull & MachineryGrounded Coll/ContactOil pollution

Tanker incidents in 2009

Based on data from LMIU + othersBased on data from LMIU + others

Groundings 22%

Fire & explosions, 7%

Hull & Machinery

28% 82 incidents53 engine

related

Misc, 17%

Collision contact 26%

Collision/contact Grounding Fire/Explosion Hull & machinery Misc/unknown

The Human

Element

is a key

component

HUMAN ELEMENT Competent seafarers: Critical success factors

Effective programmes to:

• Recruit

• Train and build experience

• Retain

Seafarer recruitment

Global shortage of seafarers has encouraged programmes* to:

• Attract young people to the industry• Heighten awareness of the maritime world• Provide easy access to information about the

shipping industry, career opportunities, training and education facilities

• Highlight seafaring as a “maritime career” with follow-on life time prospects ashore

* Many programmes have an EU focus, but the IMO has also initiated a global “Go To Sea” campaign

Providing information on maritime industries Maritime Industry Knowledge Centre

Objectives:

To improve the image of shipping

To heighten awareness of international shipping

To attract young people both to the seafaring professions and to careers onshore

www.maritimeindustryfoundation.com

Seafarer training

• Ideally training establishments should provide appropriate courses, have competent staff and modern facilities, and be externally audited

• In the tanker world the industry has established an additional scheme – Tanker Office Training Standards – addressing, assessing and recording the necessary skills and experience

• “At sea” training should be incentivised with the provision and utilisation of cadet berths

Seafarer retention

Programmes should:

• make life at sea as close as possible to life at home- with access to the social media, recreation facilities, etc.

• pay more attention to the standards of crew accommodation

• do more to address the working environment and practices

• eliminate the concerns of seafarers – including the negative factors, such as the threats from Piracy and unwarranted criminalisation after a genuine accident

“A happy ship makes for a safer ship” Improving the design (1)

Areas for improved cooperation between Owners, Builders and Designers:

• Accommodation and habitability standardsOwners too readily accept the “norms” of shipbuilders

• Personal communications for crews Providing crews with access to (cost-effective) internet and private communication

• Better shipboard training facilitiesTo facilitate development and career enhancement

? Cadet berths and training spaces could be exempted from Tonnage Measurement ?

“A happy ship makes for a safer ship” Improving the design (2)

Areas for improved cooperation between Owners, Builders and Designers:

• Equipment & systems sometimes NOT Fit For Purpose

Such as:Waste management systems*; Oily water

separators / oil discharge measurement equipment ; Incinerators; Lifeboats; Loading calculators; Cranes and more(* while not forgetting the need to ensure adequate

shoreside reception facilities)• Operating Manuals sometimes NOT Fit For

PurposeLanguage issues; Installation rather than instruction

manuals; Incomplete in content; Inconsistent in functional scope; But also sometimes simply not available

“A happy ship makes for a safer ship” Improving operational practices (1)

• Too many inspections ! - Adding unnecessarily to fatigue and stress

Ships and seafarers would benefit from :- better targeting of inspections- greater uniformity and harmonisation

• Better information on properties and characteristics of cargoes and bunker fuels Availability of Material Safety Data Sheets (MSDS) to be improved

Areas for improvement:

“A happy ship makes for a safer ship” Improving operational practices (2)

• The Tsunami of PaperworkMay be eased by employing ship’s clerk ?

• Excessive pressure on Masters and crews from Charterers, Terminal Operators and OwnersBenefits from better dialogue with other stakeholders

• Regulation without recognition of the impact on seafarers More consideration to be given to the ramifications of new regulations and legislation at IMO and elsewhere – e.g. ballast water, multi-fuels, emission abatement technologies, etc. The seafarer has to make it work - or risk being criminalised if it doesn’t !

Areas for improvement:

“A happy ship makes for a safer ship” Addressing seafarers’ concerns

The unwarranted criminalisation of seafarers too often:

- is based on “Find the guilty” culture rather than “Find the cause”

- involves failure to adhere to IMO/ILO Fair Treatment Guidelines in the event of a Maritime Accident

- discourages comprehensive accident investigations, information sharing and near-miss reporting and is therefore detrimental to safety

“A happy ship makes for a safer ship” Addressing seafarers’ concerns

Actions by industry on criminalisation include:

• actively lobbying governments to adopt and implement the IMO/ILO Guidelines

• challenging legislation that is not consistent with international treaty obligations (such as MARPOL, UNCLOS) and/or introduces criminalisation for accidents and simple negligence – e.g. the EU Ship Source Pollution Directive

• speaking out in cases of unjustified detentions and criminal proceedings, such as Prestige, Hebei Spirit, Full City and more

“A happy ship makes for a safer ship” Addressing seafarers’ concerns

The Fair Treatment concerns of seafarers go beyond unwarranted criminalisation

Crews are regularly treated as second class citizens Examples include:• Shore leave denied• Crew changes prohibited• Access to medical treatment restricted• Excessive charges for terminal transits

“A happy ship makes for a safer ship” Addressing seafarers’ concerns

• Malacca Straits / South China sea• Nigeria / Gulf of Guinea• South America• Somalia – Gulf of Aden / W Indian Ocean

Practical Measures to Avoid, Deter or

Delay Piracy

Attacks

“Our paramount concern is the safety of our seafarers”• Governments providing much appreciated

support• Owners providing extensive guidance• Ships adopting best practices

But problems and concerns remainWill future designs provide better protection ?

Protection against Piracy and Armed Robbery

谢谢大家Thank you

For more information, please visit:www.intertanko.com

www.maritimefoundation.comwww.shippingfacts.com

www.poseidonchallenge.com

London, Oslo. Washington, Singapore and Brussels