MD s Update. Asian Panel Meeting. Conrad Hotel Hong Kong April International Association of Independent Tanker Owners

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1 Asian Panel Meeting MD s Update Conrad Hotel Hong Kong April 2015 International Association of Independent Tanker Owners

2 INTERTANKO in a nutshell International Association of Independent Tanker Owners Non-governmental org est in Oslo Strict membership criteria 487 Members in 42 countries Champion - Advisor - Forum 283 Observer Status at IMO, IOPC, UNFCCC, OECD, UNCTAD Oslo - London - Washington Singapore - Brussels

3 2015 Membership 1, Number of Tankers No tankers No members Number of members 0 50 and above Below 5 0 Leading the way; making a difference

4 2015 Membership Members % Membersp % DWT % Fleet Greece 54 27% 25% 20% Italy 17 8% 2% 4% Germany 12 6% 3% 5% Norway 12 6% 9% 7% Japan 10 5% 10% 9% Singapore 10 5% 4% 5% Hong Kong 8 4% 6% 5% UK 8 4% 3% 4% Sweden 7 3% 1% 2% Denmark 6 3% 2% 5% Turkey 6 3% 1% 1% Canada 5 2% 6% 4% India 5 2% 1% 1% Others 42 21% 26% 29% Leading the way; making a difference

5 Member Engagement & Value Proposition

6 Champion Forum - Advisor

7 Facilitation, Information & Best Practice

8 Activities Round Table Associations Renewed topics for coordination and cooperation: Fair Treatment (& Criminalisation) Places of Refuge Piracy Marpol Annex VI GHG BWM Reception Facilities Corruption (incl. PSC)

9 Members Expertise & Realities e.g. Environmental Regulation Life cycle: Building/ Decommissioning/ Recycling Accidental oil pollution VOCs Volatile Organic Compounds NOx, SOx, PM CO2/GHG emissions Noise Biofouling Toxic Antifouling Cetacean strikes Ballast water Garbage Sewage Slops

10 Advisor

11 Financials Actual Year End Budget I N C O M E Membership Fees 5,200,236 5,311,123 5,302,313 Associate Membership Fees 762, , ,768 Publications 574, , ,000 Total Operating Income 6,768,203 7,149,650 7,196,521 E X P E N S E S Salaries & Benefits 2,983,044 2,902,523 3,124,376 Social Security / Pensions 797, , ,183 Public Relations & Marketing Plan 921 8, ,000 Projects / Research 45,905 46, ,730.. Total Operating Expenses -6,206,943-6,238,152-7,025,101 OPERATING RESULT 561, , ,420

12 Main Focus Areas Safety Seafarers Environment Operations Commercial Sustainability Tanker design/ construction - Enforcement of CSR - Classification standards Machinery/ equipment - Lifesaving appliances - Classification standards Fuel - Quality - Sampling - Switching operations - LNG, Biofuels - Alternate fuels Cargo - Properties - Safe tank entry - Gas detection - Inert gas - Biofuels Fair treatment - Criminalization - Shore access/visas - Medical treatment Crew competence - Training requ mnts (ECDIS, BWM) - Tanker Officer Training Standards (TOTS) - Officer matrix Seafarer welfare - Accomm n. space - Cadet berths - Fatigue/rest hours Emissions to water - Ballast water - Reception facilities & waste minimization - Hull fouling man t Emissions to air - SOX, NOX, VOC MARPOL Annex VI - Greenhouse gas emissions - Energy efficiency - Monitoring, Reporting & Verification (MRV) Ship Recycling EPA VGP - Recordkeeping - Monitoring Vetting & Risk Assessment Ports - Port state control - Ports & Terminals - Offshore Ops Maritime Security - Piracy - Sanctions Safe navigation - ECDIS - Pilotage - enavigation Chemical tanker ops Gas tanker ops Refugees Payment performance Charter party terms & Documentation Worldscale Insurance - Compensation - Liability limits - Reinsurance Anti-corruption

13 Deliverables: Vetting Sept 13 - Sept 14 SIRE Total Non-IO Intertanko Vessels inspected 5,327 3,008 2,319 44% Petroleum Inspections 12,411 6,353 6,058 49% Average Inspections/Vessel Observations 52,518 29,976 22,542 43% Average Obs/Inspection Q 9.26 If the vessel is equipped for mooring at single point moorings, does it meet the recommendations as applicable, contained in Mooring Equipment Guidelines (3rd Edition)? 2 Q Is an operational Infra Red camera fitted in the bow for ice observation? 3 Q 6.31 Can the vessel check or sample segregated ballast prior to deballasting? 4 Q 2.1 Are all the statutory certificates listed below, where applicable, valid and have the annual and intermediate surveys been carried out within the required range dates? 5 Q 2.7 Is the vessel free of conditions of class or significant recommendations, memoranda or notations?

14 Deliverables: high level dialogue Keynote: The Changing Face of International Shipping Michael Tusiani, Chairman, Poten & Partners Tanker Industry Big Picture - Analysing the latest trends with experts in trade flows, markets and finance Tanker Chartering - Discussing tanker chartering practices Teekay Shipping, Tsakos Energy Navigation, Tankers International, Total Trading & Shipping, MJLF & Associates, etc. Risk Assessment and Vessel Acceptability - What stakeholders look for when vetting and how they go about it Koch, RightShip Pty, Thomas Miller/ UK P&I Club, Sapient Global Markets, Society of Maritime Arbitrators & INTERTANKO Vetting committee Moving the Story On - Future Trends and Possible Solutions for a Sustainable Tanker Industry ICAP, The TradeNet/ IHS MINT, Norton Rose, OFAC/ US Treasury Department

15 20 May Council Meeting (am) Annual General Meeting (pm) 45 Anniversary Dinner 21 May High Level Industry Dialogue Tanker Event Exhibition BBQ Dinner 22 May Interactive Workshops - Marine Risk - BW Man t & Air Emissions - Commercial Forecasting

16 Sustainability Project Deliverables: Payment Performance Database Focus: late payment of freight and demurrage Supports findings on charterer payment performance and demonstrates late payment trends Supports time series comparison of improvements Allows Members to benchmark overall and specific performance System value increases as number of data points increases success depends on Members contributing their payments data

17 Payment Performance System Live and online now! Leading the way; making a difference

18 What you get PPS: Output and Deliverables Best payment performers Average delays in freight payments Average delays in negotiating demurrage claims Average delays in payment of agreed demurrage claims Average delays in submitting demurrage claims Leading the way; making a difference

19 Payments Performance System Leading the way; making a difference

20 PPS: Output and Deliverables.. and Comparison of your own data with others Comparison between charterers (in full compliance with anti trust/competition rules) Comparison between different tanker types Cost of late payments Comparison of payment performance over time Leading the way; making a difference

21 Payments Performance System Leading the way; making a difference

22 Payments Performance System Leading the way; making a difference

23 Payments Performance System Leading the way; making a difference

24 PPS - next steps Your agreement to participate (terms & conditions) Your engagement at ops level Testing data transfer Going live Your regular data input Members using PPS may note on f & d invoices their participation in INTERTANKO s PPS

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