Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November...

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Tanker performance and Annex VI compliance [email protected] Manager Research and Projects St. Petersburg 25 November 2008 Vostoc Capital’s The 2nd Annual Fuel trading and Bunkering Conference

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Tanker performance Safety Incidents Pollution Age Hull Emissions/Annex VI

Transcript of Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November...

Page 1: Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November 2008 Vostoc Capital’s The.

Tanker performance and Annex VI compliance

[email protected] Research and Projects

St. Petersburg 25 November 2008Vostoc Capital’s

The 2nd Annual Fuel trading and Bunkering Conference

Page 2: Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November 2008 Vostoc Capital’s The.

INTERTANKO

• Trade Association for tanker owners• 260 members, 40 countries, 2500 tankers, • 300 Associate Members• ONTERTANK office 25 persons• Representation – IMO, Brussels

Washington• Information advisory service• Meeting place• Oslo – London - Washington - Singapore

Page 3: Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November 2008 Vostoc Capital’s The.

Tanker performance

• Safety• Incidents• Pollution• Age• Hull• Emissions/Annex VI

Page 4: Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November 2008 Vostoc Capital’s The.

Tanker incidents by cause 1978-2006

Number incidents

0

200

400

600

800

1000War

Hull & Machinery

Fire/Expl

Grounded

Coll/Contact

Misc

Source: Based on incident reports from Informa

Page 5: Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November 2008 Vostoc Capital’s The.

Tanker incidents by cause 2006

Source: Based on incident reports from Informa

19%33%

9%24%

13%

Collision

Grounding

Fire/Explosion

Hull &machineryMisc/unknown

Collision

Groundings

Hull & Machinery (total 60,24 engine, 3 hull)

Miscellaneous

F & E

Reported tanker incidents Jan-Nov

2006 - total 236

Page 6: Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November 2008 Vostoc Capital’s The.

Tanker incidents by size 2006Jan-Nov 236

Source: Based on incident reports from Informa

12%

54%

24%

11%

Below 10,000 dwt

30-100,000 dwt

10-30,000 dwt

+100,000 dwt

Page 7: Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November 2008 Vostoc Capital’s The.

Tanker incidents by age 2006Jan-Nov 236

Source: Based on incident reports from Informa

12%

5%

27%

30% 25%

1990s2000s

1980s1970s

Page 8: Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November 2008 Vostoc Capital’s The.

Typical tanker incident

Source: Based on incident reports from Informa

• GITTA KOSAN (Isle of Man)• London, Nov 4 -- Following received from Stavanger

RCC, timed 0000, UTC: Liquid Petroleum Gas Carrier Gitta Kosan (4086 gt, built 1990), in ballast, drifting due to engine problems about 30 miles south of Stavanger. Salvage tug Kaliningradets about five miles from the casualty.

• Gitta Kosan , Class: Bureau Veritas, 4811 Dwt, IMO No: 8817693, P+I Club:Unknown, Contact: TESMA I.O.M. Ltd, Douglas, Isle of Man, phone 44-1624-664095, fax 44-1624-664096, Contact: J. Lauritzen A/S, Copenhagen, Denmark, phone 45--33968000, fax 45--33968001)

Page 9: Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November 2008 Vostoc Capital’s The.

Tanker incidents 2006

• Mainly minor without fatalties, pollution serious damage to property

• 40% port (or port entrance) related• 14/236 pollution (mainly very small incidents)• Solar 1, cargo 2000 ts of “industrial fuel”,

sunk, the Philippines' “worst-ever” oil spill may have been holed by another vessel while illegally off-loading at sea

• HFO 10 time worse than most crude oils

Page 10: Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November 2008 Vostoc Capital’s The.

Tanker accidents and trade

Source: ITOPF/Fearnleys

0

100

200

300

400

500

600 '000 Tonnes Trade in Tonne miles

Trade in Tonne-miles (Fearnleys)

1000 ts spilt Bn tonne-miles trade

Page 11: Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November 2008 Vostoc Capital’s The.

Accidental oil pollution from tankers and tanker trade

Source: ITOPF/Fearnleys/INTERTANKO

1000 bn 1000 bn tonne-milestonne-miles1000 ts1000 ts

0

200

400

600

800

1,000

1,200

1,400

1986-95 1996-050

15,000

30,000

45,000

60,000

75,000

90,000

105,000

ts spilt

tonne-miles

99.99997% of the 99.99997% of the oil transported by oil transported by

tankers arrived tankers arrived safely in 1986-safely in 1986-

2005, when also 2005, when also including including

operational operational pollutionpollution

Source: ITOPF/Fearnleys/INTERTANKO

Page 12: Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November 2008 Vostoc Capital’s The.

Accidental pollution from tankerslargest accidents

Source: ITOPF

0

100

200

300

400

500

60019

6719

70

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

Independenta

Amoco Cadiz Castillo de Bellver

Exxon Valdez

Odyssey

ABT Summer

Erika

Erika

Prestige

Tasman Spirit

Atlantic Empress

Assimi

1000 ts spilt

4 spills>220,000 ts 6 spills100-144,000 ts 11 spills 50-100,000 ts

Page 13: Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November 2008 Vostoc Capital’s The.

Largest tankers pollution accidentsShipname Year Location Oil lost (ts)Atlantic Empress 1979 Off Tobago, West Indies 287,000ABT Summer 1991 700 nautical miles off Angola 260,000Castillo de Bellver 1983 Off Saldanha Bay, South Africa 252,000Amoco Cadiz 1978 Off Brittany, France 223,000Haven 1991 Genoa, Italy 144,000Odyssey 1988 700 nautical miles off Nova Scotia, 132,000Torrey Canyon 1967 Scilly Isles, UK 119,000Sea Star 1972 Gulf of Oman 115,000Irenes Serenade 1980 Navarino Bay, Greece 100,000Urquiola 1976 La Coruna, Spain 100,000Hawaiian Patriot 1977 300 nautical miles off Honolulu 95,000Independenta 1979 Bosphorus, Turkey 95,000Jakob Maersk 1975 Oporto, Portugal 88,000Braer 1993 Shetland Islands, UK 85,000Khark 5 1989 120 nautical miles off Atlantic coast of 80,000Aegean Sea 1992 La Coruna, Spain 74,000Sea Empress 1996 Milford Haven, UK 72,000Katina P 1992 Off Maputo, Mozambique 72,000Prestige* 2002 Off the Spanish coast 63,000

Exxon Valdez 1989 Prince William Sound, Alaska, USA 37,000Evoikos 1997 Singapore Straits 29,000Nakhodka 1997 Oki Island, western Japan's Shimane 17,500(NN) Erika 1999 Brest, France 20,000

Page 14: Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November 2008 Vostoc Capital’s The.

Accidental pollution from tankerslargest accidents and age

Source: Informa/INTERTANKO

0

220

440

660

880

1100

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 05 060.0

3.2

6.4

9.6

12.8

16.0

Incidents

Age

Number incidents Average age

Page 15: Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November 2008 Vostoc Capital’s The.

Accidental pollution from tankerslargest accidents and age

Source: ITOPF/INTERTANKO

Oil pollution – 1000 ts Average age

0

100

200

300

400

500

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 05 060.0

3.2

6.4

9.6

12.8

16.0

Accidental pollution

Age

Page 16: Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November 2008 Vostoc Capital’s The.

Total losses, tankers and bulkers

Source: Clarkson

Number

0

2

4

6

8

10

12

14

16

18

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Tankers 47

Bulkers 155

Page 17: Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November 2008 Vostoc Capital’s The.

Tanker phase out SH tankers above 5,000 dwt - m dwt

Source: INTERTANKO

m dwt

0

10

20

30

40

50

60MARPOL (min phase out - trading of SHuntil 25 years)EU + no SH after 2010

OPA90

Page 18: Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November 2008 Vostoc Capital’s The.

Phase out SH tankers 5-29,999 dwt

Source: INTERTANKO

Number

0

50

100

150

200

250

300

-02 03 04 05 06 07 08 09 10 11 12 13 14 15

MARPOL

EU

OPA90

Phase out year

Page 19: Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November 2008 Vostoc Capital’s The.

Phase out SH tankers 200,000 dwt +

Source: INTERTANKO

Number

0

20

40

60

80

100

120

140

-02 03 04 05 06 07 08 09 10 11 12 13 14 15

MARPOL

EU

OPA90**

Phase out year

** SH tankers can trade to LOOP and dedicated lightering areas until 2015

Page 20: Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November 2008 Vostoc Capital’s The.

Tanker fleet by hull

Source: INTERTANKO

%

622

5159

67 68 71 74 77

9478

4941

33 32 29 26 23

0

20

40

60

80

10019

91

1997

End

02

End

03

End

04

End

05

End

06

End

07

End

10*

DH SH/DB/DS

% dwt share*:

* Assumes phase out according to regulations (rounded upwards, 25 years after 2010.

Page 21: Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November 2008 Vostoc Capital’s The.

MARPOL Annex VI Air emissions from Ships

Page 22: Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November 2008 Vostoc Capital’s The.

MARPOL Annex VI Air emissions from Ships

• Sulphur cap of 4.5%+• Sulphur Emission Control Areas – SECAs - Baltic

19 May 2006 – North Sea November 2007, + • Adriatic, US Gulf, Hong Kong area??? • MEPC 53 (July 2005) – Decided Annex VI be

revised• Intersessional Meeting (November 13-17 2006) –

discussion of key issues and draft proposals• MEPC 56 (July 2007) & MEPC 57 (March 2008) -

consider and approve(?) the revised texts

• Target date for revision Entry in to Force: 2010

Annex VI as from 19 May 2005

Page 23: Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November 2008 Vostoc Capital’s The.

MARPOL Annex VI Air emissions from Ships

• Ensure a solid platform of requirements • Be realistic and feasible • Seek a long term and positive reduction of air

emissions from ships • Contribute to a long term and a predictable

regulatory regime• provide engine manufacturers with the ability to

design new engines that could sensibly meet stricter regulations

Principles for an INTERTANKO position:

100+ refineries to adapt or 50,000 ships?

Page 24: Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November 2008 Vostoc Capital’s The.

MARPOL ANNEX VI - emissions

Higher fuel costs but:•Less fuel consumption•Less emissions•Cleaner emissions•Less sludge•No wastes from scrubbers or cleaning•Reduced engine maintenance•Improved safety

Requirements for reduced emissions1 solution: Cleaner fuels (distillates?):

Page 25: Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November 2008 Vostoc Capital’s The.

Marine bunkers

• 215 m ts marine bunker per year• 10% to 15% are MDO or MGO, rest • 85-90% blends: between 40/60 or 50/50

distillates/resides, i.e.• total increase in demand of distillate fuels will

be not more than some 50% of the total amount of marine fuels used which means:

• some 7% in crease in distillate demand if ships change to 100% MDO*

(or less as consumption willbe reduced)

World Petroleum Product

mbd year 2005 (BP)

m ts/year

Light distillates 25.3 1,090

Middle distillates 29.6 1,436

Fuel oil 10.2 552

Others 17.4 758

Total world 82.6 3,837

Page 26: Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November 2008 Vostoc Capital’s The.

MARPOL ANNEX VI

• Shipping NOT incinerator for refiners• Most important move since ships changed from

coal to oil• 1.5% sulphur content is obtainable• Engine manufacturers; technically workable• Reduce human error and safety problems • Corporate responsibility and a precautionary

approach to challenges

Director Marine Environment division at the IMO comments to INTERTANKO intiativecomments to INTERTANKO intiative:

Erik Ranheim
Speaking at a Det Norske Veritas (DNV) conference in London, Sainlos said Intertanko's idea to end shipping's reputation as the "incinerator for the refinery industry" would prove to be revolutionary.
Erik Ranheim
I regard the proposal as one of the most important in the work on the reduction of air pollution from ships and, if it is adopted, it is possibly the most important move since ships changed from coal to oil
Erik Ranheim
He believes the target date of 2015 for existing ships to use distillate with a 1.5% sulphur content is obtainable. He adds that he has been told by major engine manufacturers that it is technically workable.
Erik Ranheim
He adds that he has been told by major engine manufacturers that it is technically workable.
Erik Ranheim
The move would wipe out the need to carry a variety of fuels to meet the different fuel sulphur-content standards of different regions, Sainlos says. It would also eliminate concerns over human error and safety problems that might occur when fuels are being switched
Erik Ranheim
I consider the revision of Marpol Annex VI as an excellent opportunity to demonstrate to the entire world that the shipping industry takes its corporate responsibility seriously and takes a precautionary approach to our challenges, as expected of us by governments around the globe, as well as by the public," he said.
Page 27: Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November 2008 Vostoc Capital’s The.

Gasoline price at the pump

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

USA J apan Germany UK

Long haul freightratesMarketing

Oil price

Tax

Cost elements making the: gasoline price:

$ per litre

Page 28: Tanker performance and Annex VI compliance Manager Research and Projects St. Petersburg 25 November 2008 Vostoc Capital’s The.

Conclusion

• Safe• Environmentally friendly• Young• Phasing out according to schedule• Demanding clients• INTERTANKO meets challenges, but

Tankers :

Speech available on: http://www.intertanko.com

No time for complacency