INTERCARGOInternational Association of Dry Cargo Shipowners

Presentation to the Public Forum, Anchorage

March 29th, 2005

• INTERCARGO, the International Association of Dry Cargo Shipowners

• Direct entry organisation

• Specialising in Bulk Carrier issues

• Established in 1980

• Promotion of Safety, Quality, Efficiency and a Level Playing Field

INTERCARGO

Membership

• 110 Full and Associate Members

• 900 +/- bulk carriers over 10,000 dwt

• Inclusive of Operators as full members

• Membership criteria: PSC record, P&I Club, IACS, ISM, I/C Excomm.

INTERCARGO

The ROUND TABLE of international shipping associations

BIMCO, ICS, INTERCARGO & INTERTANKO

• Chamber of Shipping of America (Washington)

• Vision for the shipping industry

“ A responsible, sustainable and respected industry able to influence its own destiny.”

• Represents about 95% of World Shipping

• Develop a Strategy for the Industry and a conduit for engagement

Vision

• Safe, efficient and environmentally friendly dry cargo maritime transport industry where its member’s ships service world trade

• Operating competitively, safely and profitably

INTERCARGO

Abiding Principles

INTERCARGO

• Quality and Safety

• Transparency

• Engagement Worldwide

• Environmental Awareness

INTERCARGOShipping – national, regional and

international

• The international shipping industry - about 90% of world trade

  • Lynchpin of the global economy

• Ships are technically sophisticated, high value assets

• Nearly everything we touch and much of what we eat is carried by sea

INTERCARGO

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

est

2004

est

2005

est

Mil

lio

n t

on

ne

s

Phosphate

Bauxite and Alumina

Grain

Coal

Iron ore

Source: Fearnleys

Purpose of shippingMain drybulk – Seaborne Trade

Purpose of Shipping - Major dry bulk export cargoes

280

290

300

310

320

330

340

350

360

4q00 1q01 2q01 3q01 4q01 1q02 2q02 3q02 4q02 1q03 2q03 3q03 4q03

INTERCARGO

Source: SSY

+7.6%

+5.5%

+2.1%

INTERCARGODrybulk fleet development

Number of ships

3,000

3,500

4,000

4,500

5,000

5,500

6,000

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Nu

mb

er o

f sh

ips

Source: Fearnleys

INTERCARGODrybulk fleet development

Million dwt

50

100

150

200

250

300

350

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Mill

ion

dw

t

Source: Fearnleys

Oil pollution into the seaMaritime sources

4%

67%

4%

2%

3%

2%0%

18%

Shipping general

Accidents tankers+barges

Tank washing/VOC

Exploration andProductionCoastal Refineries

War related accidents

Leisure Craft

Natural seeps/others

Ex: INTERTANKO

19

19.5

20

20.5

21

1990-1999

1991-2000

1992-2001

1993-2002

1994-2003

1995-2004

Ten year period

Average age of ship losses

0.3

0.4

0.5

0.6

0.7

1990-1999

1991-2000

1992-2001

1993-2002

1994-2003

1995-2004

Ten year period

Annual average Dwt losses (m.tonnes)

INTERCARGO

8

10

12

14

16

1990-1999 1991-2000 1992-2001 1993-2002 1994-2003 1995-2004

Ten year period

Annual average ship losses

30

40

50

60

70

80

1990-1999

1991-2000

1992-2001

1993-2002

1994-2003

1995-2004

Ten year period

Annual average lost lives

Bulk Carrier Casualty Trends to Goal Zero

Average age of ship losses

DWT Losses

Annual average ship loss

Annual average loss of lives

The regulatory structure of shipping

• IMO

• National Administrations• Classification Societies • Flag States • Port States • Self-regulation

INTERCARGO

Safer Shipping – Chain of Responsibility

• Stakeholders: ongoing continuous improvements

• More effective regulation • A balance of interests • Self regulation • Global process with local input

INTERCARGO

INTERCARGO

The Human Element

• Seafarers are a vital Stakeholder

• Authorisation under STCW – Standards on Training, Certification and Watchkeeping (IMO)

• Seafarers must not be forgotten nor criminalised

• The men and women at sea make an enormous contibution to our lives

“Specific measures”

• Tracking Systems• Emergency Towing Vessels• Oil Spill Response Preparedness• Vessel Routing • Transparent Accident Investigation

INTERCARGO

• Automatic Identification Systems (AIS):

Industry supports concept; but concerns remain about access to the information, security, terrorism, etc.

• IMO global solution: focus on local area systems.

• Long Range Identification and Tracking (LRIT); US proposing 2000 miles information.

INTERCARGO

Tracking Systems

• European response – ETVs located and paid for by Governments

• IMO DE48 (the 48th session of the Sub-Committee on Ship Design and Equipment, Feb 2005) - proposed draft amendments to SOLAS regulation II-1/3-4 on emergency towing arrangements on ships other than tankers

• IMO DE48 correspondence group tasked to assess deck equipment to be used in emergency towing, and to submit a report to DE 49 (early 2006)

INTERCARGO

Emergency Towing Vessels

US Spill Response

• OPA 90: a great success for tankers• Non-tank vessels required to have

an oil spill response plan by Aug. 2005

• Area contingency plans• Ship management training

INTERCARGO

Routing and Navigation

• IMO routing measures• Particular Sensitive Sea Areas • National measures must be risk

based• Charterers role

INTERCARGO

Risk Assessment of Great Circle Route

• Assessment of incidents

• Work with US Coast Guard

• Work with State and National bodies

• Industry dialogue

• Define local and national policy

INTERCARGO

INTERCARGO

Transparent Accident Investigations

• Local interests and Industry need quick investigations – rarely happens

• Obstacles include: - The legal process/politics - Protection & Indemnity Clubs (Insurance) - Flag of the Ship • A just environment conducive to cooperation

Conclusion

• The industry maintains zero tolerance towards accidents.

• Progress has been made but more needs to be done.

• All Stakeholders must work together in a fair process to achieve safety and environmental protection.

• INTERCARGO is committed to this process.

INTERCARGO

INTERCARGO

INTERNATIONAL ASSOCIATION OF DRY CARGO SHIPOWNERS

Thank you for your attention

INTERCARGO

INTERCARGO