Leading the way; making a difference INTERTANKO Annual General Meeting Lagonissi 20 th May 2015...

Leading the way; making a difference INTERTANKO Annual General Meeting Lagonissi 20 th May 2015 International Association of Independent anker Owners

Leading the way; making a difference INTERTANKOsPaymentPerformanceSystem Bill Box Senior Manager Communications & External Relations INTERTANKO AGM Lagonissi 20 May 2015

Leading the way; making a difference Payment Performance System

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

Leading the way; making a difference Sustainability Project ty

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

Leading the way; making a difference Sustainability Project Ultimate Aim: to change ingrained bad habits

Leading the way; making a difference

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

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

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

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

Leading the way; making a difference Payment Performance System

Payments Performance System

Leading the way; making a difference Payments Performance System

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

Leading the way; making a difference Rescue of Migrants at Sea Dr Phil Belcher Marine Director INTERTANKO AGM Lagonissi 20 May 2015

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

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

Leading the way; making a difference Main issues Medical care Food and water Sanitation Rest area Security Rapid disembarkation

Leading the way; making a difference Advice

Leading the way; making a difference Piracy Dr Phil Belcher Marine Director INTERTANKO AGM Lagonissi 20 May 2015

Leading the way; making a difference Attacks in 2010

Leading the way; making a difference Attacks in 2014

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

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

Leading the way; making a difference GoG 2014

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

Leading the way; making a difference

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

Leading the way; making a difference Next steps- World Wide Piracy Rewriting of BMP Global BMP Common areas Regional annexes Must reflect reality

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

Leading the way; making a difference Vetting Ajay Gour Senior Manager Vetting & Chemicals INTERTANKO AGM Lagonissi 20 May 2015

Leading the way; making a difference Overview of VC

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

Leading the way; making a difference Close cooperation with: OCIMF SIRE Focus Group CDI PSC MoUs Other stakeholders

Leading the way; making a difference INTERTANKO Initiatives: Benchmarking Platforms Ship Inspection Feedback Forms Seminars & Training Publications

Leading the way; making a difference Reducing Greenhouse Gas Emissions from Ships Dragos Rauta Technical Director INTERTANKO AGM Lagonissi 20 May 2015

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

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.....

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

Leading the way; making a difference ~ 180 mt CO 2 ~ 0.5% of global CO 2 IMPACT ANALYSIS OF THE MANDATED IMPROVEMENTS

Leading the way; making a difference Terminal Conditions of Use Dragos Rauta Technical Director INTERTANKO AGM Lagonissi 20 May 2015

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)...

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

Leading the way; making a difference Ballast Water Management Tim Wilkins Senior Manager Environment. Regional Manager Asia Pacific INTERTANKO AGM Lagonissi 20 May 2015

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

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

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)

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

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

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

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

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

Leading the way; making a difference US Coast Guard - Implementation Schedule Decision Tree 2. US Ballast Water Management

Leading the way; making a difference US Ballast Water Decision Tree

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

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

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

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

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.??

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?

Leading the way; making a difference Thank you INTERTANKO AGM Lagonissi 20 May 2015

Leading the way; making a difference INTERTANKO Annual General Meeting Lagonissi 20 th May 2015...

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