INTERCARGO

International Association of Dry Cargo Shipowners Presentation to the Public Forum, Anchorage March 29th, 2005

INTERCARGO

• 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.

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

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Vision

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

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Abiding Principles

• Quality and Safety • Transparency • Engagement Worldwide • Environmental Awareness

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Shipping – 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

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Purpose of shipping Main drybulk – Seaborne Trade 1,800 Phosphate 1,600 Bauxite and Alumina 1,400 1,200 Grain Coal Iron ore 1,000 800 600 400 200 0 Source: Fearnleys

INTERCARGO

Purpose of Shipping - Major dry bulk export cargoes 360

+7.6%

350 340 330

+5.5% +2.1%

320 310 300 290 280 4q 00 1q 01 2q 01 3q 01 4q 01 1q 02 2q 02 3q 02 4q 02 1q 03 2q 03 3q 03 4q 03 Source: SSY

INTERCARGO

Drybulk fleet development Number of ships 6,000 5,500 5,000 4,500 4,000 3,500 3,000 Source: Fearnleys

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Drybulk fleet development Million dwt 350 300 250 200 150 100 50 Source: Fearnleys

2% 3% 4% 4% 0%

Oil pollution into the sea

Maritime sources 2% Ex: INTERTANKO 18% 67% Shipping general

Accidents tankers+barges Tank washing/VOC Exploration and Production Coastal Refineries War related accidents Leisure Craft Natural seeps/others

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Bulk Carrier Casualty Trends to Goal Zero 0.6

0.5

0.4

21 20.5

20 19.5

19 1990 1999 Average age of ship losses 1991 2000 1992 2001 1993 2002

Ten year period

1994 2003 1995 2004 0.7

0.3

1990 1999 1991 2000 DWT Losses 1992 1993 2001 2002

Ten year period

1994 2003 1995 2004 16 14 12 10 Annual average ship loss 8 1990-1999 1991-2000 1992-2001 1993-2002 1994-2003 1995-2004

Ten year period

80 70 60 50 40 30 Annual average loss of lives 1990 1999 1991 2000 1992 2001 1993 2002

Ten year period

1994 2003 1995 2004

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• • • • • •

The regulatory structure of shipping

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

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Safer Shipping – Chain of Responsibility

• Stakeholders: ongoing continuous improvements • More effective regulation • A balance of interests • Self regulation • Global process with local input

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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

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“Specific measures”

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

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Tracking Systems • 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.

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Emergency Towing Vessels • 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)

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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

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Routing and Navigation • IMO routing measures • Particular Sensitive Sea Areas • National measures must be risk based • Charterers role

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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

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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

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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 INTERNATIONAL ASSOCIATION OF DRY CARGO SHIPOWNERS

Thank you for your attention

INTERCARGO

INTERCARGO