11 2001 was a mixed year for tanker operators. On the downside, freight markets showed themselves at their volatile worst. Having started the year at near-record highs, they slipped back dramatically as economies slowed worldwide and the demand for oil fell.

Peter M Swift, Managing Director of INTERTANKO

On the upside, efforts by tanker owners to be heard and understood continued to bear fruit, as the oil and maritime industries acknowledged the initiatives by owners and operators to improve performance levels and the successes they have achieved so far. Tanker owners must build on this recognition. The challenge they face is threefold. They must develop appropriate partnerships with other parties in the oil shipping chain of responsibility. They must ensure that good owners are justly rewarded. And they must increase their efforts to target substandard elements in our industry.

As for INTERTANKO, 2001 was one of its busiest years so far. We undertook more activities and were present in more arenas than ever before. We set new schemes in motion while continuing to undertake a heavy programme of representation and information provision. The challenges facing the Association are to ensure that we maintain our focus, order our priorities and deploy our resources effectively. To help us achieve this we have already initiated changes within INTERTANKO, and more are planned. To make sure that the organisation continues to serve its members as well as possible, we shall be seeking feed-back from our membership to help mould INTERTANKO into an effective and respected voice in the maritime and oil industries.

The state of the industry
While we should never be complacent, there can be no doubt that within the shipping industry as a whole tanker operators are among the very best in terms of safety and social awareness. Their performance in port state control inspections bears testimony to this, as does the fact that where the tanker sector leads others regularly follow. However, as INTERTANKO's Chairman has pointed out, we still have work to do improving our image outside of shipping.

To show that tanker operators form only one part in the overall oil transport industry, INTERTANKO has identified the chain of responsibility in oil shipping. Tanker owners have acknowledged their accountability and primary role in ensuring the quality of their ships and their management, as well as the competence of their crews. They have also recognised their dependence on others, and it is important that all parties within the chain perform properly if oil is to be transported safely, cleanly and efficiently.

Although it is important that we all seek to root out the substandard elements in the chain of responsibility, we must avoid meas ures that penalise those with exemplary performance records. It is therefore encouraging to hear more calls in the industry for incentives for responsible operators and rewards for good performance. This is especially important when markets are weak and there is extra pressure to lower costs. In such markets, it is imperative that there are sufficient incentives and rewards to prevent standards from slipping. We should encourage everyone in the chain of responsibility to work together to ensure the continued excellence of the tanker industry's record.

In spite of the degree of uncertainty that hangs over the oil markets, there are reasons to be optimistic as the demand for oil recovers and the tanker phase-out requirements take hold. However, this outlook will deteriorate if owners are tempted to over-order new tonnage should shipyards drop their prices as the global surplus in shipbuilding capacity becomes more marked.

Looking back - 2001
Throughout 2001, INTERTANKO continued to engage successfully with those who have a vested interest in our industry. Our dialogues with regulators, legislators, charterers, oil companies and classification societies, as well as with other interests such as port state officials, flag states, pilots and environmentalists, were generally positive. Our relationship with each of these groups is built on the respect that our Association enjoys. The respect afforded INTERTANKO is recognition of the professionalism, competence and conscientiousness of our membership.

It is therefore satisfying to record that the majority of the proposals generated in Europe after the Erika accident, and which have dominated much of our efforts in Brussels, have found acceptable and timely solutions through the appropriate international mechanisms in line with INTERTANKO recommendations. It is also encouraging that outstanding issues are likewise being addressed through the relevant international legislative organisations.

The efforts of our secretariat, committees and panels in these and many other endeavours have helped INTERTANKO engage constructively with legislators and regulators. You will find more about their work over the last 12 months elsewhere in the Annual Review, though I would like to stress some particular successes here.

We have liaised with charterers, port state control officials and others in an effort to lift the burden of an excessive number of inspections. We are actively contributing to the discussion about more rational vetting practices and policies. We have also worked with classification societies on procedures, policies and standards. We have pioneered solutions to environmental problems ranging from engine and cargo vapour emissions to the recycling of ships and workable timetables for the phase-out of tin-free anti-fouling paints. We are continuing to address the challenge of ballast water management, working with others on the DNA tagging of oil fuels, as well as pushing for adequate waste reception facilities in ports around the world.

Our work has resulted directly in revisions to bunkering codes, the extension of master-pilot exchanges, the development of an inspection survey plan for condition assessment schemes, a review of lifeboat accidents, and further steps in the harmonisation of CDI and SIRE procedures.

The safety and health of the tanker crews remains a priority. Further expertise on the physical properties of oil cargoes and their hazards has been developed to assist crews to operate these cargoes in a better and safer manner. However, industry cooperation with this activity is necessary and INTERTANKO has requested IMO to consider a new regulation that would contain a standard format for material safety data sheets for oil cargoes loaded onboard ships.

Other notable achievements include our successful action when the state of California started implementing unlawful, unannounced tanker oil spill drills, our effective response when the head of the US Environmental Protection Agency wrongfully criticised the tanker industry, and the successful recovery on behalf of our members of over USD 9 million in unpaid freight and demurrage fees.

Our new publications are summarised elsewhere in this Review. These include 'A Century of Tankers', which has been a major undertaking and would not have been possible without the very extensive and much appreciated contribution of many of our members, friends and staff. We have also published the highly acclaimed 'A Guide to Tanker Charters', which is recognised as probably the most authoritative work in this field. Besides publications on port information, disbursements and much more, we have co-produced 'An Industry Code of Practice on Recycling', which is also available via our website. Also on the website are many other valuable documents, including for example VOCON - a shipboard procedure to control VOC emissions during the voyage. All examples of an active but rewarding year.

Looking forward - 2002 and beyond
In the aftermath of the Erika accident, much of the tanker industry's focus has been on Europe and the EU. While the EU has established an influential voice in the tanker industry, it is important that INTERTANKO maintains a balanced, global perspective and continues to represent tanker owners' interests everywhere.

The tragic events of last September have inevitably introduced new concerns about the security of all maritime operations. Though these fears are well understood, it is important that the tanker industry ensures that any new measures are focussed properly, are practical in their application and do not unduly impinge on free trade and the commercial integrity of our business.

During 2002, we will continue with many of the programmes set in motion over the past year. We aim to finalise an awareness guide for newbuildings and in conjunction with IBIA a good practice guide for bunkering. We will continue the work to ensure acceptable revisions to Annexes I and II of the chemical code, the international oil pollution liability and compensation conventions, and the EU Directive 99/32 on bunker fuels, and encourage early ratification of Marpol Annex VI. We will monitor emerging legislation such as the EU Directive on Restoration of Environmental Damage and various Bills in the USA related to maritime security, and generally seek to secure international rather than national or regional solutions to tanker issues. We will maintain attention to safety in general and will particularly focus on ports and terminals, including further development of our terminal vetting programme.

Throughout we will work as effectively as possible with our industry partners, not least with the oil companies. And, as always, we will continue to promote and defend the interests of our members and provide world-class advice and assistance.

Looking globally - a more effective organisation
With our membership active in many parts of the world and frequently venturing into new areas of business, it is essential that our organisation adapts accordingly if it is to service the needs and meet the expectations of its membership. We have therefore made some structural changes within INTERTANKO. We have relocated part of the secretariat and its activities to London, in order to interact more effectively with other international shipping organisations and the IMO. We have reopened our office in Washington, DC. We have recently established a Latin American Panel. And we have sought to strengthen our regional activities with additional local workshops and seminars.

We have also recognised the need to manage the flow of information to our members. To aid us in this, we have revamped our website (www.intertanko.com) and we are introducing a more structured management of our advisory and information services to INTERTANKO members.

INTERTANKO derives much of its strength from its committees and panels. The contribution made to these by many dedicated individuals and companies is greatly appreciated. We must ensure that our panels and committees remain as effective as possible, are not euro-centric and involve our worldwide membership to the maximum practical extent.

We should not forget that other associations representing shipowning and operating interests are also involved in many of the national and international issues that we ourselves address. Through a process of increased contact and communication, we are endeavouring to build alliances with the principal international associations in order to minimise the duplication of our efforts and to make effective and efficient use of our combined resources. At the same time we fully recognise the importance of maintaining a strong, clear and individual voice that speaks on behalf of independent owners and operators in the oil and chemical trades.

A personal view
This, my first year with INTERTANKO, has been an exciting and challenging period.

I am pleased to report that we have maintained a strong membership base and that we have stepped up our efforts to attract others to the organisation. We have once again operated within budget and to maximum effect thanks to the dedicated and competent team within INTERTANKO and a set of excellent external consultants.

My introduction into INTERTANKO was eased greatly by the guidance and unfailing support provided by Westye Høegh, to whom not just myself but also the Association owes a great debt of gratitude for his outstanding tenure as chairman.

I would also like to express my appreciation to INTERTANKO's members and staff, who have welcomed me so openly and have given of their valuable time to assist me as I settled in. I would particularly like to single out Svein Ringbakken, who did a sterling job as acting Managing Director and who showed fortitude and patience during the transitional phase.

In Lars Carlsson we have an excellent new Chairman. I share with him the vision of strengthening the Association and ensuring that tanker owners and operators receive the rewards and recognition they justly deserve.

Peter M Swift
February 2002