How COVID-19 is transforming tanker operations18 August 2020 • 09:00-09:45 BST

Part ofTanker Shipping & Trade Webinar Week18-21 August 2020

Panellist & sponsor documents

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Page 2: Dr. Arthur Diskin, Future CarePage 9: Gerry Buchanan, Liberian Registry (LISCR)Page 21: Mark Cameron, Ardmore ShippingPage 29: Future Care corporate literature

How COVID-19 is Transforming Tanker Operations 18 Aug. 2020

COVID-19: A Medical PerspectiveDr. Arthur Diskin, Global Medical Director, Future Care Inc.

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Number of Cases Globally (as of 13 August 2020)

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• Keeping the virus off the ships that have not experienced illness

• Crew screening prior to boarding

• Proper cleaning and sanitation during and between voyages

• Maintaining social distancing on board and preventing asymptomatic transmission

• Proper use and establishment of culture for handwashing and face mask use

• Management of contractors, vendors and governmental authorities

• Selection of proper testing strategies in a very dynamic environement

• Safe management of cargo and supplies

• Management of sick crewmembers (PUI)

• Management of critically ill COVID crewmembers and emergency disembarkation

• Accessing medical care and/or repatriation for crew with other conditions

Challenges for the Shipowner

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Polymerase Chain Reaction (PCR)• Collection

• Nasopharyngeal Swab• Nasal swab• Sputum

• Requires central lab• False positives and negatives• Turnaround times for results

• Antigen testing• Sputum or swab• Requires reader• Fast turnaround• Less costly per test• Far less sensitive – window of false negative

• Immunoassay• Lateral flow – qualitative; IgG and IgM• Quantitative• False positives and negatives• Turnaround times• Exposure vs Immunity

• What’s next? – Frequent, lower cost, faster turnaround, less sensitive – test contagiousness

• Crew screening and back to work post-infection decision making (Utilize COVID Services)

Covid-19 - Testing

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General hygiene guidance for crew pre-deployment and on board

One person on board with highest level medical certificate

Distribute individuals with medical experience and certificates across the fleet

Universal use of face masks on board until cohort of crew together for 10 days without illness

Social distancing during meals and other non work activities

Increased deployment of hand sanitizers

Gloves while moving cargo

Education on mask and gloves removal (donning and doffing)

Strategic planning for crew disembarkation at every stage of passage (Utilize COVID Services)

Full crew turnover when possible (Utilize COVID Services)

Suggestions for Ship Operators: 1

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Manage guests; contractors; vendors and officials

Clean and sanitize between voyages; crew mess; disembarked staterooms

Identify potential isolation cabins

Increased par level for PPE; medication and supplies; crew prescription medication

Strategic deployment of crew over 60; immunocompromised or with underlying medical

conditions – especially diabetes; Syndrome X

Mandatory flu vaccination

Co-horting of exposed/recovered crew

Utilize previously ill crew for necessary port activities (assumes no re-infection)

Continuous updates on the status of every port visited

Integrity of pre-boarding testing program

MAINTAIN A CLOSE WORKING RELATIONSHIP WITH YOUR TELEMEDICINE PROVIDER

Suggestions for Ship Operators: 2

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Covid-19 Services

Since the start of this pandemic and the disruption it has caused to the Global Maritime Industry, particularly as to crew management, telemedical providers like Future Care Inc. have developed “COVID-19 Services” to assist owners and managers to facilitate crew exchanges, in the USA & globally – including testing, case specific consulting and executive level conferences to discuss ongoing strategies.

Future Care’s COVID Testing since the begining of June:

< 2.25% 0.55%

Tanker Shipping & TradeIndustry Leaders Webinar

Gerry Buchanan

Liberian International Ship and Corporate Registry

• Fleet stats:• Second largest flag 13% of the world fleet and over 180M GRT

• Growth stats• Fastest growing flag in 2019 and to date 2020

• Quality rankings• White Listed in Paris and Tokyo MOU

• Global Network• 29 full service regional offices, with 24/7 service

About the Liberian Registry

Discussion Points

• Crew Change Issues and Seafarers Employment Agreement

• Safety Inspections & Audits

• Five Predictions for 2021

Joining• Quarantine• Visas• Covid testing and time for results• Flights• Transportation• Adds up to a major co-ordination nightmare

Re-patriation• Not quite the reverse but requires as much co-ordination• Authorities need to be supportive• Most of all the ship need to be in the right place at the right time

Crew Change Issues

First and Foremost Seafarers are Human Beings• Essential workers but it does not always seem that way• Global standard

• Travel restrictions result:• Service on board far in excess of agreed contracts• Excessive separation from family• Resulting mental health issues• Increase levels of stress• Feeling of abandonment• Suicide

How does this affect Safety:

• No end in sight• Complacency• Safe operations affected at sea and in port

• WHAT ABOUT THE SEAFARERS ASHORE• Not knowing when the next appointment will be• Living in the hot zones• No income• Bank accounts close to empty• Bills and mortgages etc to be paid• Alternative work

How does this affect Safety:

Certification of the vessel and crew• Increase in requests for extensions.• Increase in dispensations

• Audits and Oversight:• How to conduct Safety Inspections and Audits:

• Postponement, or• Remote inspections and surveys.

• Port State Control• How will PSC look at vessels that have had major disruptions to their normal safe operations and regulatory

compliance?• How will PSC look at expired documents and overdue audits?

• Regulatory Intervention• Extension of endorsements and certification• Extension of dispensations, exemptions, authorization• Extension of dry docking

Safety Inspections & Audits

• Number of Ships with extended surveys (within the allowable 3-month window)• Approximately 100 ships from 1 March- 6 August extended statutory surveys. • Under extraordinary circumstances and force majeure, up to 6 months, subject to progression of the relevant

surveys to maximum extent practicable and conditions for those survey items which require completion in dry-dock

• Number of seafarers working on board in excess of their SEA• as of 3 July 2020, 2575 seafarers were repatriated and about 5200 seafarers were on board in excess of their SEA

• From 1 March – 6 August, about 1350 dispensations issued for seafarers to extend their SEA beyond 11 months.

• In the 5 months prior 1 March 2020, about 25 dispensations were issued for seafarers to extend their SEA beyond 11 months

• This is about 5300% increase

Oversight of The World’s FleetSafety Inspections & Audits

I believe yes – we need to get authorities to have confidence is a proven process:

1. TESTING – prescribed by WHO

• Faster results

2. TAMPER PROOF way of recording results

3. VACCINE – reliable vaccine still some time away

Consider these process slides………

Can we resolve this

Safe Crew Change

CrewCrew

Safe Crew Change

1. We will still be living with Covid-19

2. The industry will demand more from the IMO

3. Regulatory change will come

4. Remote Inspections and Surveys are here to stay

5. Irrespective of Vaccines, testing will still be required and with it a secure Health Pass

Five Predictions for 2021

Tanker Shipping & TradeCOVID-19, Transforming Tanker Operations

2Introduction

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2020 – The year the accommodation block changed from ‘home’ to ‘prison’

2020 – When ‘Safety First’ became as much about mental ‘safety’ as it did physical safety

3Operations – Human Element Reality

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The plans, The changes,The communication effort,The constant appeals for understanding,The sleepless nights.

The frustration – let it out,The families,The known unknowns,Those ashore waiting to get back to work

The treatment by authorities,The lack of respect a.k.a. - recognition

The sense of abandonmentWho can blame seafarers for feeling let down?

4Operations – Human Element Reality

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In a world where we rely deeply on trust, there is no doubt many seafarers do not ‘trust the system’ that let them down.

Not the owners / employers, Not the managers / crewing departmentsNot the unions…but the governance structure that failed to recognise their true importance on a world wide basis and refused to cut through unnecessary tape to answer the pleas to effect action.

What has changed? - How seafaring is seen as a global truly vital career choice- But as a career it is not appreciated for what it does - Trust has undoubtedly depreciated

5Operations – The Perverse Nature of Trade

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- Q1 / Q2 many tanker owners presented record earnings

- We worked around the limits, the show kept going

• Class stepped up – deferring and managing the risk• Flag stepped up, working in tandem• Charterer’s stepped up, helped to manage voyages to

facilitate crew changes• SIRE/CDI worked to assist through practical, workable

alternative structures- Independent entities collaborated – chartering

flights / filling seats

As expected, there were those who tried to gouge and make insane profit through transportation charges.And there were those who ‘tried’ to refuse to comply with restrictions (port authorities, pilots)

6Operations – The Extensions

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Drydock planning moved beyond availability of yard space to challenges around physical attendance

Usual rush of timing to coordinate spares parts moved to outright availability of components due factory closures and logistical limitations

For some, financial commitments to large installations (scrubbers of ballast water) had to be placed on hold or deferred altogether

Better to ask for forgiveness of a failed plan than to explain the absence of a plan altogether

7Operations – The Cloudy Predictions

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The fallout from the Covid-19 impact on the cruise sector could be significant Financing? Employment? Yards?

The CO2 debate will undoubtedly move from limited action to a significant ground swell movement to address the slow pace of change

We may battle to attract young, top talent to seafaring as a career choice and we may lose top end talent and experience to a change of lifestyle choice

8Operations – The Brighter Predictions

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Shipping will remain a vital global service and just maybe, the people at sea will be awarded the career choice respect that they richly deserve and that ‘the authorities’ may learn from this for the

future

This too shall pass and the new normal will bring with it the new opportunities that await those with the open eyes, minds, arms and willing attitude to embrace change

The CO2 debate will undoubtedly move from limited action to a significant ground swell movement to address the slow pace of change