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Committee round-up
Associate Members Committee (AMC)
Chairman Main aims:
Members: The Associate Members Committee (AMC) held its first January meeting in 2005 in order to progress working issues and to plan input and contributions to INTERTANKO’s 2005 Tanker Event in Athens. This takes the AMC’s meetings to three times in the year. The AMC is pleased to note the progress achieved by its noticeable involvement in the Athens event, with speakers as well as a chairman. Issues addressed by AMC members included claims caused by the human factor, propulsion issues for LNG ships and development of standardised LNG charter contracts. The Committee has been particularly pleased to see the vacant committee seats for an oil company representative and a shipbuilder representative both being filled, thus widening the scope of future AMC discussions. The lack of compensation to tanker operators for port security fees remained in focus. INTERTANKO and the industry had taken the position that security items should be funded through the traditional port cost structure or through grants, hoping that a uniform and transparent structure would facilitate the reflection of such cost items in the Worldscale rate system. It is therefore very good news that the Worldscale flat rates for 2006 will reflect security costs worldwide and thereby provide compensation to tanker operators for such cost. The exception will be the U.S. ports where the structure of such fees remains confused. Containing representatives of a number of links in the Chain of Responsibility, the AMC members have given considerable thought to how their broad experience can be utilised and thereby contribute to enhanced quality and improved service to the industry. The Committee highlights the importance and awareness of industry training. It is felt that the complexity of the tanker industry, and the ever-growing need to create for clients value in the widest possible sense, calls for continued focus on expertise. The growing need for competency in the field of LNG transport is particularly important. The AMC currently represents nine different business sectors: agency, shipbroking, class, P&I insurance, marine response, oil company, shipbuilding, ports, flag. It feels that the professional training of staff, and the awareness of the benefits that this can bring, needs to be continuously highlighted as a key component in the value chain. The quality screening of all associate membership applications remains one the AMC’s key tasks, along with its subsequent recommendation to Council’s formal approval process.
Bunker Sub-committee
Chairman Main aims:
Members: The activity of the Bunker Sub-committee continued to be dominated by two main issues. First, MARPOL Annex VI enforcement on air pollution represents a big challenge to ships. Few countries have actually ratified and thus enforced the new Convention which means that although ships must comply, there are very few ports where bunker deliveries are monitored accordingly. Second, the monitoring of reports on quality and adequacy of bunkers delivered shows some alarming reports on non-compliant bunkers delivered to ships, but at the same time some excellent news on development of efficient monitoring of bunker deliveries, particularly in Singapore and Gibraltar. INTERTANKO, via the Bunker Sub-committee, submitted a paper to the IMO’s Marine Environment Protection Committee’s 53rd session, with suggested amendments to the IMO Guidelines for port state control officers. Some of INTERTANKO’s suggestions were adopted and consequently ships will have a better defence and will not be made responsible for deficient bunker deliveries or incomplete documentation. The Bunker Sub-committee supervised the development of an INTERTANKO model indexing the air emissions from ships. The indexing spreadsheet is an expanded model of the IMO guide for GHG indexing of ships which is limited to CO2 emissions. The aim is that, by using data known to both the owner’s operations department and a vessel’s command, operational indications will be provided to assist decision-makers to have more effective transportation and environmental awareness. The Bunker Sub-committee has continued to monitor and comment on the EU Parliament’s amendments to the EU Sulphur Directive seeking clarification and guidance. The adopted amendments took into account the industry’s (including INTERTANKO) strong recommendations and advice as well as the provisions of MARPOL Annex VI. Ships will be allowed to use marine diesel oil with maximum 1.5% sulphur content which replaces the provision for use of either residual fuels (not covered by the original provisions) or 0.2% sulphur distillates. At INTERTANKO’s request, the new provision for use of 0.1% sulphur fuels when ships are at berth has been postponed until 1 January 2010. The Bunker Sub-committee thanks the outgoing Chairman, Hamish Cubitt, for his excellent eight-year chairmanship, and for his leadership in establishing and encouraging this committee to become an important body in the field of ship bunkers and bunkering operations. He reinforced the Sub-committee’s credibility and broadened participation to the current symbiotic mix of INTERTANKO operators, fuel testing laboratories and bunker suppliers. The Sub-committee will nominate its new Chairman at its first meeting in 2006.
Chemical Tanker Committee
Chairman Main aims:
Members: 2005 has seen the work of the CTC and CTSCA continue to increase, and with INTERTANKO now representing over 80% of the world’s parcel tanker and chemical tanker fleet, the committee’s effectiveness is broadening and deepening. 2005 has been a very intensive right across the chemical and chemical-related sector. The main current issues and work programme items are:
Chemical Tanker Sub-Committee (Americas) (CTSCA)
Chairman
Main aims:
Members: The effectiveness of the Chemical Tanker Committee continued to be enhanced by the work of the Chemical Tanker Sub-committee (Americas) (CTSCA), which ensures even more effective representation for INTERTANKO's chemical tanker operator members who are regularly trading to the Americas and particularly to the United States. The members of INTERTANKO’s two chemical tanker committees are considered by many to be the definitive source of information on chemical tanker regulations in the U.S.and worldwide. The Sub-committee held its 5th CTSCA Meeting and hosted the second annual chemical tanker seminar in June 2005 in Houston in conjunction with the Independent Liquid Terminal Association 2005 Conference and Trade show. This seminar focused on maritime security, high interest vessel boardings, MARPOL Annex II, implementation of automated manifests and electronic bills of lading. The 6th CTSCA meeting was held on 3 October 2005 in Houston, Texas. The agenda included:
CTSCA is also working on the implementation of MARPOL Annex II in 2007. At its October 2005 Meeting, the US Coast Guard Chemical Transportation Advisory Committee (CTAC) voted to approve the formation of a work group under the auspices of the Chemical Transportation Advisory Committee (CTAC) Outreach Committee. The primary objectives of the MARPOL Annex II Work Group will be to develop a framework for the Navigation and Vessel Inspection Circular (NVIC) that will be used to implement MARPOL Annex II. INTERTANKO’s Chemicals Manager has been asked by the CTAC to chair this effort. I NTERTANKO continues to participate in CTAC - the Association's Chemical Manager is currently serving as an appointed member of the Committee. Other U.S. involvement includes active participation in the Houston Galveston Navigation Safety Advisory Committee (HOGANSAC), the purpose of which is to provide consultation to the Commandant of the USCG on the subject of the transit of vessels and products to and from the ports of Galveston, Houston and Texas City.
Communications and Public Relations Committee (CPR)
Chairman Main aims:
Members: 2005 was a busy year for the Communications and PR Committee, beginning in February with a presentation on the internal marketing of INTERTANKO. The year also saw progress on activity to improve the image of the industry, and saw the establishment of the Maritime Industry Foundation. The Committee reiterated the need to ensure a clear distinction between managing public relations for INTERTANKO, evolving its forward strategy, and developing the industry image - the latter being a much wider and more multi-dimensional issue. Two workshops on internal marketing of INTERTANKO highlighted that this a key issue for the Committee, after the image of the industry. This work included examining how INTERTANKO reacts to, and is perceived by, its members; what its strengths and weaknesses are; how it should market itself internally. During 2005, a Working Group was set up to examine the development of a series of ‘local awareness’ pilot projects which are designed to build a dialogue between the industry and those who have specific interests in a coastal region. Such interests would involve, for example, the fishing community, local regulators, port officials, seafarer colleges, tourism, as well as the local community itself. The Working Group is considering ways to involve also the general public - primarily teachers, parents, students and school children. This would have the added benefit of allowing the dissemination of learning packages and information on careers at sea. The Association worked closely with its Round Table (BIMCO, ICS, INTERCARGO, INTERTANKO) partners during 2005, and to mark World Maritime Day a special leaflet was produced which highlighted the fact that 90% of world trade is carried by sea, and that, in order to operate efficiently, the shipping industry depends on a global maritime regulatory framework. The Round Table website www.shippingfacts.com has been continuously updated during the year with new facts and figures and a ‘face lift’ is planned for 2006. The Poseidon Challenge initiative was addressed by the Committee together with the programme for the Singapore Tanker Event in March 2006. The Maritime Industry Foundation was established in January 2005 and granted charitable status by the UK Charity Commissioners in July 2005. The philosophy of the Foundation is that knowledge and information help to create more accurate images and a better decision-making environment. The core objective of the Foundation is to educate and inform a broad global audience about all the commercial activities that combine to form the Maritime Industry, and its fundamental importance in maintaining human existence.
Documentary Committee
Chairman Main aims:
Members: The Association’s Documentary Committee has met three times this year. The January meeting saw the chairmanship being handed over to Arve T. Ustgård by outgoing Chairman John R. Lean. The occasion was marked by a dinner held in honour of John Lean and INTERTANKO expresses its thanks for the dedication and leadership that he has provided to the Committee. During the year the Committee has published a number of model clauses to assist the association’s membership: Bunker Emissions Clause for Time Charters; MARPOL Annex VI Clause for Bunker Supply Contracts; Danish Straits Clause for Time Charters; Danish Straits Clause for Voyage Charters. These clauses join INTERTANKO’s stable of model clauses that are published on the Legal & Documentary page of the Association’s website. The clauses seek to strike a balance between parties’ rights and liabilities. The Committee is currently working on a number of other model clauses which will be published in due course. The Committee serves as a useful forum to discuss current chartering issues, such as electronic bills of lading and recent case law (English and U.S.), as well as interacting with the Association’s other committees (e.g. the joint working group with the Vetting Committee on vetting clauses). The Association’s catalogue of chartering publications has been enhanced by the addition of a commentary on the new Shell voyage charterparty form, Shellvoy 6. This form is more of a codification of a number of amendments to its predecessor Shellvoy 5. INTERTANKO’s commentary concentrates on the new elements (and should therefore be read in conjunction with its publication A Guide to Tanker Charters). A Chartering Seminar/Forum was held in conjunction with the Association’s Tanker Event in Athens in April. This was kindly hosted by theTsakos Group. In 2006 a seminar will be held in Singapore, venue for the Association’s 2006 Tanker Event.
European Reference Group (ERG)
Chairman Main aims:
Members: INTERTANKO's European Reference Group (ERG) has continued its work of informing relevant Members of the European Parliament, European Ministers, and representatives of the European Commission and of Member States, about INTERTANKO’s work, and about the views of the Association and its members on the maritime issues currently preoccupying the European Union. This work is being effected in key European cities as well as in Brussels. ERG Members are well-suited for this task as they each represent a substantial national/local interest and are able to present the issues in the relevant native language, as well as in a context which combines national and regional perceptions with the broader outlook of the international shipping industry. INTERTANKO and the members of this Group have been invited to participate actively in a number of discussions involving Members of the European Parliament (MEPs), the European Commission and representatives of EU member states. The issues that the Group has dealt with include:
Environmental Committee
Chairman Main aims:
Members: At its first meeting of 2005 in Athens*, the Environmental Committee prioritised its consideration of ship recycling as the key issue for 2005, with an agreement for a proactive approach to the development of a mandatory regime by the International Maritime Organization (IMO). Having recommended a mandate in support for a legally binding instrument, and seeing this objective come to fruition during the IMO’s Marine Environment Protection Committee (MEPC) in July, the Committee continues to target a full adoption of the voluntary guidelines together with a system of providing feedback and input to the IMO during its development of the mandatory regime. When the Committee met for its second meeting in Dubai* at the end of the year, the new Chairman, Dimitris Stamoudis of Minerva Marine Inc., reinforced the Committee’s proactive direction on ship recycling by focusing attention on the elements that could be worked upon by INTERTANKO’s members in parallel to the IMO’s development of the mandatory scheme. Recognising that there would still be a period of time until the IMO completed and adopted a mandatory regime, the Committee is keen to continue promoting activity which will improve the current environmental and worker health and safety problems associated with the recycling of ships. The Committee is determined to adopt a forward-thinking, proactive approach in its consideration of INTERTANKO’s environmental issues. This year also saw the Committee begin consideration of the implementation of corporate and social responsibility (CSR) within the tanker sector and CSR’s tie-in with environmental sustainability in shipping. Looking forward to 2006, the Committee agreed to continue its objective of increasing environmental awareness in shipping by organising a second Environmental Awareness Course in early spring 2006, which will be hosted by Heriot-Watt University in Edinburgh. As national, regional and international attention continues to focus on both industry and society’s impact on the environment, the Committee continues to monitor and act upon a wide range of issues ranging from the relatively localised issue of ship-strikes on whales to the more widespread and wellknown topic of invasive species in ships’ ballast water. *INTERTANKO would like to thank Seaworld Management and Trading Inc., Greece and Vela International Marine Ltd., Dubai for hosting the Environmental Committee’s meetings in 2005.
Insurance & Legal Committee
Chairman Main aims:
Members: The Committee has had another busy year which commenced with a meeting in Paris in January which afforded the opportunity to meet with representatives from the French marine hull and liability markets. The Committee subsequently met in London in June and October. The key issue with which the Committee was extremely active was discussions concerning possible revisions to the international oil spill liability and compensation regime and the meetings of the International Oil Pollution Compensation Fund (IOPC Fund). The debate on revision took place at the March meeting of the IOPC Fund Third Inter-sessional Working Group and then again at the IOPC Fund Assembly in October. This issue has run prominently at all IOPC Fund Meetings since early in the decade. After protracted debate the Assembly decided against revision and to retain the current regime of the 1992 Civil Liability Convention (CLC) and Fund Convention. This important decision ensures that the victims of oil spills continue to have a compensation regime which is practically universal. Shipowners retain the principle of strict but limited liability. The minimum level of liability for small tankers, which was increased by a binding agreement known as STOPIA, is being extended to all members of the 1992 Fund. The Assembly also agreed that a mechanism should be developed to ensure that there is an overall sharing (50:50) in the cost of all claims between shipowners and oil receivers. Furthermore, the Working Group which had been considering these issues was closed down. Agreement was reached that a new Working Group should be set up to examine the role of insurance and liability issues in promoting quality shipping. The issue of war risks also featured prominently in the Committee’s work this year. The catalyst was the announcement in June by the Joint War Committee (JWC) of the London market that a new system for war risk cover was being introduced together with a revised list of war risk areas. Of particular concern was the failure of the JWC to consult with industry in advance, and also to include the Strait of Malacca on the list of war risk areas. Representatives from INTERTANKO and the International Chamber of Shipping (ICS) met with representatives from the JWC in July and December. In August Intertanko and the ICS hosted a briefing meeting at which the JWC, and its risk advisors Aegis Defence Services Ltd, met with representatives from industry, the littoral states and others. At its October meeting the Committee invited representatives from senior managers of members of the International Group P&I Clubs as guests. There was a wide ranging discussion covering issues such as group reinsurance, club retentions and claims analysis, including the impact of the hurricanes Katrina and Rita. International law and criminalisation of seafarers and others for accidental pollution is an issue of great concern to the Committee. The Committee has discussed the impact of the EU Ship Source Pollution Directive which was published in July as well as the Canadian legislation introduced in Bill C-15.
INTERTANKO Offshore Tanker Committee (IOTC)
Chairman Main aims:
Members: The INTERTANKO Offshore Tanker Committee (IOTC) has continued its activity under the chairmanship of John Einar Dalsvaag of Knutsen OAS Shipping A/S. IMO regulatory developments for FPSOs and FSUs have been at the forefront of the Committee’s agenda. INTERTANKO has been actively involved in the finalisation of the IMO’s moves on FPSOs and FSUs, with Committee members working on the guidelines for the application of MARPOL regulations for FPSO and FSU units - including the new Form C of the IOPP certificate and provisions for oily-water overboard discharges. Among the priority matters were the forthcoming regulations covering the North Sea (Norwegian Sector) for containment of volatile organic compounds (VOC) from offshore activities. The Norwegian Government would require a reduction by 74% of VOC emissions which means new and innovative technologies being tested. Members’ companies are involved in such tests and feedback and experience are shared through the IOTC. The Committee has been conscious of the need to develop relationships with other bodies and has particularly been making moves to establish a closer activity with the UKOOA’s (United Kingdom Offshore Operators Association) FPSO Committee. In addition, IOTC plans to establish a system whereby members can compare their experiences, with the aim of possible coordinated corrective action, and of development of new best practice procedures and guidelines.
INTERTANKO Safety, Techincal and Environmental Committee (ISTEC)
Chairman Main aims:
Members: The major issue of the year for the INTERTANKO Safety, Technical and Environmental Committee (ISTEC) has continued to be the development of the IACS Common Rules for Tankers, the so-called Joint Tanker Project (JTP). ISTEC analysed the 2nd and 3rd versions of the proposed newbuilding rules and submitted comments as appropriate. ISTEC members have used additional resources in assessing how these new regulations would improve the designs of their recently built double-hull tankers and, as in the previous year, ISTEC met with the JTP team to discuss these differences and the efficiency of the new regulations. On ISTEC’s recommendation, INTERTANKO’s Council gave a final endorsement for the adoption of these rules, but simultaneously requested IACS to develop procedures for ensuring a correct and uniform application of these regulations. ISTEC (and thus INTERTANKO) expressed disappointment that the new common structural rules seem not to include the best industry practice for coating application on ballast tanks. ISTEC perceives that even though the new common structural rules are an improvement to the current rules, tanker owners would still need to make use of the "owner’s extra" clause to achieve some of the critical structural area margins they feel necessary. ISTEC still expresses the view that IACS removes from its rules an acceptable "negative tolerance" on steel plates delivered to shipyards for use in ship building. INTERTANKO’s Council expressed great appreciation for the efforts of the entire ISTEC and particularly to its Chairman, who has dedicated a lot of time and energy to this complex assessment. Another activity that required extensive resources was linked to the IMO developments for a mandatory regulation on performance standards and related guidelines for coating application. INTERTANKO participated actively in an IMO correspondence group and provided extensive input to this work through an efficient use of its members’ expertise on this domain. INTERTANKO has submitted a separate paper to the IMO analysing, for the benefit of coatings performance activity, the current standards on six major Far East shipyards. The work will probably be concluded by the IMO in 2006 at the next meetings of the Design and Equipment Sub-Committee and the Maritime Safety Committee. The Committee’s work on goal-based standards for newbuildings (GBS) has been considerable. The IMO will play a larger role in determining the standards to which new ships are built, and the flag administrations will become more accountable for the standards of the ships they register. Two distinctive approaches to this rule development are: a deterministic approach (simple prescriptive rules) versus a more sophisticated risk-based methodology. The latter would, however, be difficult to develop because all SOLAS and MARPOL regulations are of a prescriptive nature. The work will continue in 2006 and most probably in 2007. After issuing a successful Guide for Correct Entries in the Oil Record Book, ISTEC agreed to continue to address the operational and equipment-related issues that might aid management of ship oil-water separators in the engine room. ISTEC set up a working group to deal with this issue. The activity started at the end of 2005 and is planned to be concluded in 2006. ISTEC has agreed that INTERTANKO should initiate the drafting of a tanker owner’s maintenance manual for use as a guidance and reference document. It should be a practical application standard addressing and defining who, how, where and when issues. ISTEC will work on this project jointly with the Tanker Structure Cooperative Forum (TSCF). The activity started in 2005 and will be finalised in 2006. ISTEC was again monitoring the agenda of the fifth Tripartite meeting between ship operators, classification societies and ship builders in Beijing, China. The success of these meetings can be measured in the number of agreements and follow-up actions which the three parties will pursue. In May 2005, the European Maritime Safety Agency (EMSA) published its 42-page report concerning safety aspects of double hull tankers. INTERTANKO/ISTEC was part of the group of experts that assisted EMSA. Other participants were OCIMF, IACS, ICS, BIMCO, and the Community of European Shipyards’ Associations (CESA). ISTEC has also agreed to take the lead role and provide a first draft proposal for a new SOLAS regulation for fixed systems to detect hydrocarbon gases. ISTEC’s agenda includes new definition of heavy grades of oil, maritime security, pilotage, lifeboat accidents, free-fall lifeboats, etc. ISTEC also gave assistance to the Vetting Committee with regard to the OCIMF guide on Tanker Management Self Assessment (TMSA).
Vetting Committee
The year has seen further reductions in the number of multiple tanker inspections, helped by INTERTANKO’s ongoing efforts to encourage port state control (psc) to utilise existing arrangements for accessing SIRE and CDI data in order to help achieve a better targeting of sub-standard ships. 2005 has also seen an increase in the use of TMSA. The Committee supports this initiative that both defines and promotes quality within the shipping industry. It believes that the TMSA system reflects a level of recognition of the high quality standards that currently exist within the tanker sector, and indicates an encouraging level of trust towards the quality tanker owner. Work is also in hand to produce a benchmarking system based on TMSA that can be utilised by INTERTANKO members. The Terminal Vetting Database continues to enjoy huge success and has seen the development of a partnership arrangement between INTERTANKO and BP, not only for sharing terminal reports but also for responding with positive action to enhance safety standards. The vetting inspection feedback form system is still progressing, with reports comparing the 2003 and 2004 results available on INTERTANKO’s web site - and shared with CDI & SIRE for use at their inspector seminars. Our partnership agreement on vessel questionnnaires with Q88.com goes from strength to strength. Links are now in place between EQUASIS and the Q88.com web site and we are discussing with prominent port state control authorities the possibility of direct access. Key issues for the Vetting Committee are now handled by a number of working groups.
Vetting seminars have been held this year in Mumbai, Miami, Athens and Singapore with great success in terms of content and attendance.
Worldscale Committee
Chairman Main aims:
Members: A major development of the Worldscale system in 2005 was basing the Schedule on the new and revised BP Shipping Marine Distance Tables. The new distance tables take into account IMO conventions, littoral state legislation and published official recommendations for environmentally sensitive routeing. This has been warmly welcomed by INTERTANKO and its Worldscale Committee, which has been recommending such a policy for a long time. Other key issues discussed by the committee include costs associated with the ISPS Code which may vary according to the security level (these costs are now included where known, except for the US); ports (including STS areas etc.) where no firm port charges are available; assumptions used for transits of the Turkish Straits; future requirements to use special (e.g low sulphur) fuels in certain areas; and ports/transhipment areas where Worldscale does not reflect any charges. The electronic version of the Worldscale schedule continues to be enlarged, with nearly 500,000 voyages now included in the system, compared to just 73,000 in the printed edition. INTERTANKO and the Worldscale Association have enjoyed a very easy and open relationship over many years. The dialogue is constructive, even if we do not always manage to achieve complete agreement.
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