Lars CarlssonAthens, 25 October 2001

Shipowners role in

the Safety Chain

Shipowners role : TOTAL

RESPONSIBILITYfor his ships !

Introduction to INTERTANKO

Better than Ever

Still Challenges to be met

Responsibility Chain

Quality Quest

International Association of Independent Tanker OwnersInternational Association of Independent Tanker Owners

INTERTANKO INTERTANKO todaytoday

• 225252 Members Members• 2,2,063063 tankers tankers• 116464 million dwt million dwt • 4455 countries countries• 288 288 Associate MembersAssociate Members

Oslo London Singapore Washington

• Tanker shipping is safer and of higher quality than ever

• Average age of the fleet is low

• Double skin tankers are replacing the single hulls

• ISM and voluntary schemes have improved the skills and the standards of seafarers as well as routines and procedures between ship & shore

                     

                                                                         

Better than ever

Better than ever

• Continuous Continuous improvementimprovement

• Owners strive toOwners strive tomeet & exceedmeet & exceedthe demands of the demands of legislators & legislators & chartererscharterers

• INTERTANKO & INTERTANKO & OCIMF in DialogueOCIMF in Dialogue

• INTERTANKO / INTERTANKO / OCIMF work with OCIMF work with Class Class

Machinery and system failure 32%

Collison / Contact /Grounding

27%

Fire / Explosion21%

Hull / Equipment Failure

17%

Other 3%

Still challenges to be metTanker Casualties

Tanker owners and INTERTANKO are tracking the causes of these accidents. We search co-operation from other organisations and authorities to find efficient solutions for minimising the number of accidents through prevention schemes rather than new legislation

Still challenges to be met

The Erika Challenge

-The Owners

- The Class Society

- The flag state

- Charterers selecting the defect ship

“ What we do not achieve today as to safety and quality in transportation, will be forced upon us tomorrow by people less competent and less motivated to make a good job out of it than us ….”

VISION for tankers

A globallyrespected and profitable industry

based on long term, safe transportation solutionsin close co-operation with other links

in the safety chain.

How ?

• If you think quality is expensive - try an accident

• If you think maintenance is expensive - try steel renewal

• If you think proper ballast coating costs a million dollars more - try a recoating at 12 million

The world expects us to have 0 accidents.

99.97% safe transportation means that out of 1.000 tanker liftings 3 will have some problems

That will not be accepted! It takes one accident to change the industry

Let’s start where it pays best

• We should concentrate on the ships trading in the most environmentally sensitive areas

• The Jessica was an old and badly managed ship which spilled oil in the Galapagos. This should never happen again

Attention to spill prevention in an American river has got to be stricter than in the open ocean because the consequences are so serious

we must try harder to reduce the exposure where it really pays

Bosphorus

Singapore Straits

Tokyo Bay

Environmentally sensitive areas – A few examples

DelawereRiver

Sensitive areas - definition

• Vulnerable ecology• Confined waters• Intense traffic

Sensitive areas – proactive measures

• Traffic control• Manoeuvrability criteria• Redundancy criteria

Environment sensitive areas

Support expected from important organisations:

• INTERTANKO• Oil Companies International Maritime Forum• International Tanker Owners Pollution Federation• International Group of P&I Clubs• International Chamber of Shipping• AND – we need support FROM YOU

Safe Tanker earnings formula

Cargo earnings +Safety earnings +

++Economic life ++

Ship price +

Responsibility ChainShipyards and Class Societies

• Newbuilding standards are often based on lowest permissible standards.

• Future breakdowns, cracks and failures are planned in the shipyards´ design departments and approved by Class.

  • INTERTANKO and

OCIMF together have demanded a dialogue aiming at better standard tankers

Responsibility ChainCharterers

If the charterers were to select the better ships

instead of stating that all approved ships are equally good,

they would create a quality competition

Responsibility ChainInvestors

• If the investors push shipping companies to reduce their daily running costs to raise the share price, we will see less qualified crews, postponed repairs and other reductions which may contribute to the next Erika type accident

• A vicious circle where exhausted crews struggling with failing equipment are more likely to make a mistake than crews working with planned and continuous maintenance schemes. And ….

Responsibility ChainInvestors

• The warm, cosy feeling The warm, cosy feeling of dollar saved…of dollar saved…

• … … may turn into anmay turn into anErika type nightmareErika type nightmarecosting billionscosting billions

Responsibility ChainOwners

• The owners’ role in the chain ... cannot be isolated The behaviour of each link in the chain of responsibility is affected by requirements and actions in the other links  

• If we want an even safer tanker industry - if we want to strike out the risk for new Erika type accidents – we must work together

Let us challenge the shippingworld to join us in a quality

competition !

ShipyardsClass Societies

ShipownersCharterers

Service IndustryPeople

Quality Quest : Invitation

Evolution DriversEvolution Drivers

Class Societies

Charterers

Yards

Investors

We are good but … we can still improve

• And above all - let us co-operate to make shipping an accident free business. Zero tolerance for oil spills and loss of lives in the tankers.

• Let us strive to make ITOPF and Ian White redundant!

togetherwith you !

The tanker owners are here to do our share and an even better job