INTERTANKO - The International Association of Independent Tanker Owners
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About INTERTANKO
 
1. Annual Review
1.1 Chairman's Review
"A rewarding vision"
1.2 Managing Director's Review
"Looking positive"
1.3 The State of the Industry
"Performing well"
1.4 Regional Round-Up
"Global presence"
1.5 INTERTANKO in Europe
"Europe: the vision of becoming a major player"
1.6 Committee Round Up
"The Association's heart and soul"
1.7 www.intertanko.com
 
2. Annual Report
2.1 Financial Report 2001
2.2 Honorary members and governing bodies
2.3 Committees and Regional Panels
2.4 Members by country
2.5 Associate members by country
2.6 The INTERTANKO Secretariat
2.7 New Publications
2.8 Tanker Facts 2002
2.9 Articles of Association
 
3. Advertisements
Committee Round Up - The Association's heart and soul

Now more than ever, each aspect of a tanker voyage is being scrutinised by regulators. INTERTANKO exists to make sure that tanker shipping can argue its case authoritatively in each instance. To do this effectively, it relies on a number of committees and working groups to help it gather, analyse and distribute information. Each committee addresses a vital issue in tanker shipping, and last year and this, their work has allowed INTERTANKO to represent and advise its members during every step of a tanker's voyage.

Tanker voyages often involve brokers in the initial stages and INTERTANKO provides a forum for these activities. This is one of the tasks of INTERTANKO's Associate Members Committee, which oversees the liaison of the organisation's 290 associate members, 51 of whom are brokers. Nine business sectors are directly represented through the Committee members.

Not all tanker voyages are long ones. With the increasing profile of short sea shipping, particularly in Europe where significant policy and financial incentives are under consideration, more tankers are being employed on shorter routes. In the last year, INTERTANKO's Short Sea Tanker Group decided to expand its membership base from North Sea and Baltic operators to include Mediterranean shipping interests, and it has monitored EU short sea shipping initiatives.

Having found a cargo for a ship on a certain route, the broker must check that the tanker meets the cargo interest's requirements. Ship vetting has grown in importance, leading some years ago to the creation of INTERTANKO's Ship Vetting Inspection Committee, which in the last 12 months has redeveloped the standard inspection feed-back form and addressed the issue of excessive multiple inspections. As part of this effort, a second INTERTANKO Vetting Reference Forum was held in Singapore and Athens and a letter sent to the IMO high-lighting that tankers typically undergo up to 31 statutory and commercial inspections annually.

If the ship meets the cargo interest's restrictions, the broker can fix the ship using the Worldscale mechanism to determine a rate. INTERTANKO's Worldscale Committee exists to help members understand the Worldscale system and to provide the Worldscale Associations in London and New York with feedback from members to help them fine tune the system. In early 2001, the committee published a very well-received publication 'Worldscale A Chartering Tool' and kept members up-to-date on the electronic version of the system.

A price agreed for the hire of the ships, the details of the voyage will be set down in a charterparty. INTERTANKO's Documentary Committee plays a key role in reviewing new charter terms and forms for tanker shipping, passing its findings and recommendations to the membership through INTERTANKO's Weekly NEWS. In the past year, the committee published A Guide to Tanker Charters to much acclaim.

The paperwork sorted out, the tanker can start the loading of the cargo. Prior to loading, ballast water may need to be treated to avoid the introduction of harmful, non-indigenous organisms to the waters surrounding the loading port. The Environmental Sub-committee, a branch of the INTERTANKO Safety, Technical and Environmental Committee (ISTEC), drives the organisation's efforts in this and other areas and it has been working on an Environmental Challenge scheme that would identify green concerns and stimulate solutions. The Committee has also been addressing the possible DNA tagging of bunker (and cargo) oil as a deterrent to illegal discharges at sea.

One group of tanker operators with strong environmental concerns are chemical tanker owners, who are represented by INTERTANKO's Chemical Tanker Owners Advisory Group (CTOAG). Over the last year, CTOAG has continued its work in connection with the revision of MARPOL's Annex II, which covers pollution from chemical tankers. In view of the proposed Annex II changes, CTOAG is working to establish the stripping capability of its members' chemical tankers. It has compiled a questionnaire and will be co-ordinating this project with the Chemical Carriers Association and the Norwegian Shipowners Association. CTOAG experts represent INTERTANKO on all the CDI Committees and cooperate with US Chemical Tankers Advisory Committee (CTAC) on other safety measures.

It is not just the ballast water and cargoes carried by tankers that can pollute. The fuel that drives them has given increasing reason for concern over the last year, especially in Europe. ISTEC's Bunker Sub-committee has spent the past year promoting cleaner and better fuel for ships as well as producing procedures for limiting emissions from cargo tanks.

Events in 2001 placed added emphasis on port and ship security. The threat of terrorist acts against ships in port has been a matter of IMO discussion and INTERTANKO's Associate Members' Committee will be studying the findings of the IMO's Maritime Safety Committee's Intersessional Working Group on Maritime Security, and encouraging consistent worldwide solutions to the issues raised by the IMO.

INTERTANKO's Insurance Committee has also been addressing issues raised by last year's terrorist attacks, especially the exclusion of large areas of the world from ordinary war risk insurance cover and the introduction of higher premium levels across the board. INTERTANKO and the International Chamber of Shipping met in London with underwriters to express these concerns, and INTERTANKO has continued its dialogue with insurers since.

The Documentary Committee has been busy in this regard as well, keeping members informed about war risk chartering provisions and their legal and commercial consequences. INTERTANKO has also raised the issue of increased insurance costs with chartering interests.

Insurance provisions in tanker shipping cover a wide variety of incidents that can occur during a tanker voyage - none more costly than the consequences of a spill. Over the past year, the Insurance Committee has helped INTERTANKO monitor and participate in discussions at IMO and EU level about changes to the existing two-tier compensation scheme for victims of a spill, resulting in INTERTANKO backing for the introduction of a worldwide third tier of compensation to be funded by cargo interests rather than regional schemes such as the EU's proposed Compensation Oil Pollution Europe (COPE) initiative. INTERTANKO has endorsed the proposed voluntary increase of the limits of liability for small ships under the 1992 CLC for ships in those states which adopt the supplementary tier to offset any perceived imbalance between contributions to compensation from ships and cargo due to the establishment of a cargo financed supplementary fund. INTERTANKO has also strongly supported the P&I clubs decision to reserve the right to withdraw the voluntary scheme if any essential element of the 1992 CLC affecting shipowners' liabilities is amended.

If something does go wrong during the voyage of a tanker, it is comforting to note that tanker operators know their responsibilities and have compensation arrangements in place to help spill victims. Tanker operators must also address their responsibilities to their crew. A first step is making sure that the ships they man are the best the industry can provide. To help achieve this ISTEC has been working to produce a guide outlining relevant aspects of tanker construction and specification - a key concern during 2001. ISTEC also established a working group to consider the issue of excessive lifeboat testing, which can endanger crew rather than protect them. ISTEC's working group on Surveys/CAS has been developing a standard format for CAS Survey Planning. Another ISTEC working group is examining the subject of coatings for ballast and cargo tanks.

In the event of an incident involving a tanker during its voyage, the operators must manage their commercial responsibilities. INTERTANKO's Communications and PR (CPR) Committee has recommended that a number of media workshops around the world be organised over the next 12 months, aimed at helping members draw up effective media and incident management procedures.

Many insurance and compensation issues that could crop up during a tanker voyage can be avoided if crew and shore staff are suitably trained. INTERTANKO has actively helped staff working for members and associate members gain valuable insights into tanker shipping through its Associate Members' Committee. The AMC has collated training needs and is working to encourage cross-business training initiatives.

In the vast majority of tanker voyages, the ship will arrive at its destination without incident. It will need to give notification of arrival and the Ship Vetting Inspection Committee has supported the US Coast Guard calls for the name of the charterer to be added to the required information. ISTEC's Pilotage Working Group has been working on the drafting of a code of practice during pilotage to help govern the master-pilot exchange.

Once on its berth, a tanker may be inspected by port state control officials. Over the past 12 months, the Ship Vetting Inspection Committee has highlighted the need for a formal appeals procedure within the Paris Memorandum of Understanding area in the event of detention that is deemed not to have been justified - an initiative that has met with a favourable response from the authorities in the UK and elsewhere. The vetting committee has also been maintaining a database of officer and crew experiences at terminals worldwide in a bid to highlight and address repeated problems.

Having transported a cargo safely from its port of origin to its destination with the aide of a competent crew manning a vetted tanker in accordance with the stipulations of the charterparty, the tanker operator has a right to expect prompt settlement of freight, demurrage and other outstanding charterer payments. However, demurrage remains a thorny issue. The acquisition of documentation and the submission of claims within a specific time window are added demands on staffing resources, as are disagreements over claims. Moreover, disbursement delays affect cash flow and slowdown the payment of brokers' commissions. INTERTANKO's AMC and Documentary Committee continue to address this issue and explore opportunities to improve the current process of demurrage claims handling.

On occasion, tanker operators may need to show some steel to recover the money that is owed to them. During 2001, INTERTANKO's Freight and Demurrage Information Pool helped recover USD 9 million in outstanding freight and demurrage payments for members. It has been a successful service for many years and deals with instances where charterers have failed to respond to claims, failed to pay an agreed claim or failed to honour an arbitration award. The pool also monitors the payment performance of a wide range of charterers and cargo interests. Last year, an online database was added to INTERTANKO's website.

Tanker voyages tend to generate oily shipboard waste, which a tanker may want to offload before it sets off on its next voyage. Port reception facilities are not always available, though. Over 2001, the Environmental Sub-committee continued to help INTERTANKO formulate and voice its recommendations for port reception facilities around the world.

Not every voyage ends at a discharge port. A tanker needs regular maintenance, particularly of its outer shell, and may be directed to a drydock. Anti-fouling hull paints have been a key topic at environmental forums and the Environmental Sub-committee has co-ordinated INTERTANKO's efforts to support the introduction of effective tin-free coatings.

At the end of their economic life tankers need to be disposed of conscientiously. The Environmental Sub-committee has helped INTERTANKO promote ship recycling practices that reduce the burden on the environment and decrease the health risks to humans.

Tanker operators are often modest about the effort and professionalism involved in safely transporting a cargo of oil to its destination. Part of the brief of INTERTANKO's Communications and PR Committee is to get the message across to a wider audience. In addition to publishing A Century of Tankers, a well-received history of tanker shipping, the CPR Committee developed initiatives to promote tanker shipping through educational bodies, the Internet and INTERTANKO's website.

INTERTANKO's website will be a key means of disseminating information to members. At the same time it will allow members to follow the progress and work of the organisation's various committees, activities, presence at the IMO and other regulatory bodies allowing them to see for themselves that INTERTANKO is with them every step of the way.


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