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INTERTANKO’sWorldscale Committee

Presentation to INTERTANKO’sCouncil 6 May 2010

Tim Horne – ChairmanKristian R. Fuglesang - Secretary

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 Worldscale  INTERTANKO Council 6 May 2010

• Purpose of Worldscale:

 – Provide shipowner with same net return per day

irrespective of the voyage actually performed

• Very useful tool for voyage chartering

• Shorthand method for comparing marketlevels

• Increases transparency• Facilitates competition

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 Worldscale  INTERTANKO Council 6 May 2010

• Worldscale problems – a major reason whyINTERTANKO was established in 1970

• INTERTANKO’s Worldscale Committee:

 – One of INTERTANKO’s oldest Committees

 – From confrontation to constructive cooperation

 – Integrity

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 Worldscale  INTERTANKO Council 6 May 2010

Aims:

• To ensure that WS is as useful forcomparison purposes as is practicable

• To keep WS system under review

• To have a constructive dialogue with WSAssociations in London and New York

• To generate ideas and makerecommendations – both re. policy anddetails

• To assist members in understanding WS

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 Worldscale  INTERTANKO Council 6 May 2010

Current issues

• Low sulphur fuel

 – Emission control areas

• Demurrage – loss of comparability

 – Max. 0.1% sulphur content at berth + anchorage• Derivatives trade (Forward Freight

Agreements)• Interpretation and advice to members

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 Worldscale  INTERTANKO Council 6 May 2010

Some previous issues (ctd.)

• Greater clarity for Turkish straits passage

• Norwegian NOx tax

• Security charges in ports – ISPS costs

• Bunker adjustment clause

• £, €, ¥ - exchange rates quoted

 – enabling currency adjustment clauses

• Environmentally sensitive routeing

 – Achieved in 2005, but promoted since 1991

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 Worldscale  INTERTANKO Council 6 May 2010

Activities:

• Meetings when required

 – at least once a year (next: 20th May)

• Operating through correspondence

• Annual working lunch with London WSAssociation (next: 20th May)

• Close direct contacts between Secretariats• Provide Members with advice

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 Worldscale  INTERTANKO Council 6 May 2010

Activities continued:•Lectures to students

•Publication

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 Worldscale  INTERTANKO Council 6 May 2010

Committee Members:

• Tim Horne, Teekay Shipping (UK) Ltd (Chairman)

• Mark Linham, Eletson Maritime Limited, London

• Hayato Mochizuki, Mitsui OSK Bulk Shipping (Europe) Ltd

• Justin Murphy, AET

• Iain Shaw, St. James’s Chartering Ltd

• Christian Østrup, Laurin Maritime

• Kristian R. Fuglesang (Secretary)

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 Worldscale  INTERTANKO Council 6 May 2010

Thank you for your attention

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 Worldscale  INTERTANKO Council 6 May 2010

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 Worldscale  INTERTANKO Council 6 May 2010

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 Worldscale  INTERTANKO Council 6 May 2010

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 Worldscale  INTERTANKO Council 6 May 2010

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 Worldscale  INTERTANKO Council 6 May 2010

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 Worldscale  INTERTANKO Council 6 May 2010

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 Worldscale  INTERTANKO Council 6 May 2010

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 Worldscale  INTERTANKO Council 6 May 2010

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 Worldscale  INTERTANKO Council 6 May 2010