INTERCARGOInternational Association of Dry Cargo Shipowners

Bulk Carrier Benchmarking

Mr Rob Lomas

13 October 2006

INTERCARGO

• Dry Bulk Association

• Member of the Round Table

• Associate Member - Intermanger

• Represents about 800 bulkers and increased membership (130 full and associate)

• Common challenges – quality, safety, responses to regulation

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Benchmarking ethos

Should we publish ?

• How do stakeholders perceive us?• Stronger demands for

transparency• Adequacy of existing information

sources – data presentation issues; margin of error

• Portraying our members as higher quality

• Targeting becoming more important

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• Port State Control analysis of one sector

• Extensive statistical analysis – c 6000 bulkers

• Analysis of flag, class, owner

• “Deficiencies per inspection” correlates with ad-hoc quality definitions

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PSC BENCHMARKING DOCUMENT

A : Statistical information (10,000 dwt +)B : PSC Data (Paris / Tokyo / US CG)C : Benchmarking DataD : Further information / recommendations

Intercargo Executive Committee meeting on 9 October 2006 – concerns with corruption and uniformity of inspection

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THE FINDINGS

Statistics

• Fewer dry bulk vessels than thought on “at least one inspection in Paris/Tokyo MoU / US CG areas in 3 years” basis

• 6000 vessels; 1200 companies; growth in “Intermanager” controlled bulkers

INTERCARGO

FINDINGS –

PSC Detentions - main

• Fire fighting : 1st : 598• ISM / Certificates : 2nd : 539• Lifeboats : 3rd : 425• 10 other categories – note, serious

structural - 149

• Many detentions immediately pre-post vessel sale

FINDINGS

Owners – casualties

• Context – declining casualties :-

2005 – 6 losses / 1 structural / 0.974 per 100 ships

2004 – 5 / 1 / 1.154

2003 – 4 / 0 / 1.389

…. 1996 – 14 losses

INTERCARGOOwners Benchmarking Matrix• Deficiencies per inspection (median : 2.44;

average owner scored 3.57; Intercargo entered vessel – 2.11)

N90-100 (worst) 7.2 to 41 80-89 5.25-7.69B-70-79 4.03-5.2360-69 3.14-450-59 2.45-3.12B+40-49 1.94-2.4430-39 1.51-1.9320-29 1.13-1.510-19 0.62-1.121-9 (best) 0-0.61

• Large “Intermanager”-style third party shipmanagers perform well on quality

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Benchmarking Class

• 2.93 deficiencies per inspection with IACS entered ships; 8.71 for non IACS

• Intercargo only approves IACS

Benchmarking Flag

• Can only recognise historical performance (2003-2005)

• Credit for improvements – especially Cyprus

• Flags outperforming market share included – Panama (+2.22%); Hong Kong (4.82%); Liberia (0.77%); Bahamas (2.25%)

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Benchmarking – age

• Vessels in 22-30 year old range comprise 29% of the fleet but had 53% of the detentions

• There are good, older ships but PSC inspectors target older vessels.

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• Benchmarking – Human Element

• It is not only the BAD owners which have collisions and groundings but also the GOOD

• Collisions 2005 : “A” and B+ managers had 61% of the collisions but comprised 39% of total.

• Groundings 2005 : ditto 54% / 39 %• Inference that training requires further attention

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CONCLUSION … FURTHER ACTION

• ISM failings to be corrected

• Owners should divert attention to detail – certification, minor fire / lifeboat issues

• Stakeholder involvement essential

• Human Element – the challenge for the good owners

• Target corruption

INTERCARGO

INTERNATIONAL ASSOCIATION OF DRY CARGO SHIPOWNERS

Thank you for your attention

www.intercargo.org

info@intercargo.org

www.shippingfacts.org