INTERCARGO

25th. ANNIVERSARY MEETING

ROUND TABLE

of international shipping associations

Members of the ROUND TABLE

BIMCO

International Chamber of Shipping

(International Shipping Federation)

INTERCARGO

INTERTANKO

The ROUND TABLE of international shipping associations

– voluntary cooperation to:

• Promote common policy positions – representative of wide common membership

• Provide strong and united shipowner “voice” in International Forums

• Ensure more effective use of limited resources

• Avoid surprises / resolve potential conflicts in policies

ROUND TABLEof international shipping associations

- shared principles

• We are committed to working together • We are committed to QUALITY & the elimination

of the substandard• We have no pride of authorship• We promote CONTINUOUS IMPROVEMENT in

this fast paced world

AND• We do not accept that the current way is the

best way

A few examples of Round Table cooperation

• Joint submissions to IMO

• Common positions with respect to EU issues

• Establishment of INTERGROUP as formal stakeholder interface with EU Parliament, Commission, Council and EMSA

• Tripartite meetings of owners, builders and class

• Flag State guidelines (updated)

• Industry Code on Recycling

• The “image” of shipping – working with IMO et al

Issue Agenda is a long one• Maintaining Supremacy of IMO & International Maritime Law

Against the challenges of Local and Regional Legislation

• Challenges to Industry Governance Structures

• Balancing Regulation with Self Regulation

• Promotion of CONTINUOUS IMPROVEMENT

• People issues Piracy

Ship Recycling Environmental Challenges

Competition Rules Security

Liability Regimes Dialogue with partners

Image & Much more

“INFORMATION IS GLOBAL,

BUT

POLITICS ARE LOCAL”

LEGISLATION AND REGULATION IS GOING LOCAL AROUND THE

WORLD

Maintaining Supremacy of IMO & International Maritime Law

Against the challenges of Local and Regional Legislation

INTERNATIONAL

Challenges to UNCLOS

EU Ship Source Pollution Directive

Canada Bill C-15

Ballast Water Legislation

Air Pollution / Fuel Quality regulations

FEDERAL

Challenges to EPA regs on Ballast Water Discharges

Massachusetts Oil Spill Response legislation

Pending legislation in New Jersey Delaware, and Rhode Island on tanker traffic, LNG

shipments, etc.

Challenges to Industry Governance Structures

International Law

But also

Flag

Classification Societies

Port State Control

Balance between Regulation & Self Regulation

REGULATION

Effective Regulation

• Fit for purpose• Properly considered

• Impact assessed• Compatible with

International Law• Implemented uniformly

SELF-REGULATION

Best Practice

• Commitment from all• Industry Guidelines

• Requires Trust

Industry-wide FoundationIndustry / University Partnership

• Vehicle to enhance image and reputation of ALL in the shipping industry• Providing access to information for schools, universities,

politicians, regulators and media• Providing financial and technical support to those who wish to know more

The Maritime Industry Knowledge Centre

The Maritime Industry Foundation has been established as an industry / university partnership supported by both public and private funds

Students, Public, etc.

Facts diffuse rumour and knowledge dispels fear.

Harnessing the information base of The Maritime Industry and providing the tools for its communication will create an environment in which many new

Images will emerge.

The Maritime Industry Foundation will shine a new light on this great Industry.

OWNERS&

QUALITY SHIPPING

TODAY

• ACCIDENTS ARE DOWN

• MARKETS ARE GOOD

• BEST OF TIMES ?

AN IMPORTANT QUESTION?

WHAT RESPONSIBILITIES DO OWNERS HAVE BESIDES MAKING

MONEY?

• THIS IS THE POLITICAL STRUGGLE • IT WILL BE ANSWERED….WITH US OR WITHOUT US

Designers Shipbuilders Equipment Suppliers

Class

Charterers Operator/Manager

Financiers / Guarantors

Owner

All stakeholders in the maritime businesses are linked in the expanded Chain of Responsibility

Cargo Owners BrokersP&I Hull insurers

Ports & Terminals

Coastal StatesWaterways authorities

Flag states

Bunker suppliers Pilots Tug operators Labour providers

Salvers RepairersPaint Suppliers Agents

Spill Response Cash Buyers Ship Breakers Regulators

CONTINUOUS IMPROVEMENT

DO WE NOT ALL SHARE A RESPONSIBILITY TO STRIVE

TO CONTINUOUSLY IMPROVE OUR REAL PERFORMANCE?

IF So !

Looks can be deceiving

And again

COMMON THREADS

• OWNER RESPONSIBLE FOR THE MAINTENANCE OF THE VESSEL

• ALL REGISTERED WITH LEGITIMATE FLAGS

• ALL FULLY CLASSED

• ALL WERE ENTERED IN P&I (IG)

• MOST WERE “ACCEPTED” BY LEADING CHARTERERS

P&I IS ONLY ONE LINK IN CHAIN OF RESPONSIBILITY

• APPROXIMATELY 25 OTHERS• P&I IS A VITAL ONE• LICENSE TO TRADE• EVERY SHIP-OWNER HAS A STAKE IN THE

SUBSTANDARD GROUP SHIP• BUT …. WE ARE NOT JUST LOOKING TO P&I

OPTIONS FOR P&I

• REQUIRE SURVEYS FOR LOWER QUALITY VESSELS

• EXCHANGE INFORMATION ON VESSELS (AND OWNERS?)

• EVALUATE OWNER DISINCENTIVES FOR LOSSES (INCENTIVES FOR QLTY)

• REVIEW GROUP AUDIT PROCESS

Work with “supporters” to overcome any competition law issues

INTERTANKO Annual EventSingapore 30-31 March 2006

POSEIDON CHALLENGE:an invitation to all participants in the Chain of Responsibility to join INTERTANKO members in a sustained commitment to CONTINUOUS IMPROVEMENT. It is founded upon the principle that the shared goals of “zero accidents”, cleaner seas and the elimination of the sub-standard can best be achieved by voluntary, cooperative and self motivated efforts. Further, it recognizes the importance of cooperation and that every link in the Chain of Responsibility is vital and must perform to the same high standard for society’s goals to be achieved.

SUNRISE?SUNSET?

SHIP-OWNERS TO DECIDE

• WILL WE DO WHAT HAVE BEEN DOING-”LEAVE IT TO THE POLITICIANS WITHOUT THE STAKEHOLDERS ”

• OR WILL WE INVEST USD 70 MILLION TO CONSTRUCTIVELY INFLUENCE OUR FUTURE? (USD 80 BILLION PROFITS IN 2004)

• NEXT YEAR WE WILL SPEND USD 10 + BILLION ON NEW SHIPS

• WILL INDUSTRY LEADERS ENGAGE THE BATTLE?

www.intertanko.com www.shippingfacts.com

www.themaritimefoundation.com