Insurance & Legal Committee

Chairman
Kenneth Marshall
Secretary: John Fawcett-Ellis

Members:
Ken Marshall (Chairman), Neda Maritime Agency Co Ltd
Martine Cor (Vice-Chairman), Broström Tankers SA
Terfe Adolfsen, BW Gas ASA*
Andreas Andreou, Columbia Shipmanagement Ltd
Giorgio Biassoni, Premuda
John Dunn, Hellespont Steamship Corporation
Bengt Hermelin, Samco (Services) Ltd
Kiran Khosla, International Chamber of Shipping (Observer)
Mikio Nakashima, NYK
Badariah Othman, MISC Berhad
Nicholas Psarros, Ceres Hellenic Shipping Enterprises
Spyros Polemis, Seacrest Shipping Co Ltd*
Chunfeng Song, China Ocean Shipping (Group) Company
Ingela Tengelin, Stena Bulk AB
Geoff Woodford, N.J. Goulandris Ltd
* Retired from the Committee after 8 years service

Main aims:

• The aim of the Committee is to further the common interests of the independent tanker industry with regard to all relevant insurance and liability issues.
• The Committee shall, in addition to acting as a resource group for other INTERTANKO bodies as well as for the INTERTANKO Secretariat, whenever possible act as a link between INTERTANKO and the insurance industry and its organisations.

It has been an active year for INTERTANKO’s Insurance & Legal Committee. The Committee’s membership was enhanced during the year with new representatives from INTERTANKO members in the Far East, thus ensuring a broad geographical spread of members. The Committee’s Vice-Chairman Terje Adolfsen stood down from the Committee at the June meeting, when he was thanked for his valuable contribution to the work of the Committee.

The Committee in accordance with its remit maintains contact with the various major marine insurance markets. In January a meeting was held with representatives from the Scandinavian Hull and P&I insurers, in the relaxed and stimulating surroundings of Norway’s Harahorn. This afforded the opportunity to have a broad and valuable exchange ideas and views on insurance industry issues.

The Committee subsequently met in London in June and October. One of the key issues for the Association, which the Committee has been following closely, has been the legal proceedings concerning the EU Ship Source Pollution Directive. INTERTANKO is leading an industry coalition to challenge the validity of this Directive which seeks to criminalise accidental pollution. On 30 June 2006 the High Court of Justice in London gave its ruling and granted the applicants a comprehensive reference to the European Court of Justice (ECJ) in Luxembourg. The industry coalition has filed its submissions to the ECJ and must now wait for a hearing date to be set.

The Committee is also active in advising INTERTANKO’s Executive Committee on matters of policy pertaining to insurance issues. One such issue has been the increased liability under the 2003 Protocol to the Athens Convention. The Committee also keeps a watchful eye on issues which have the potential to increase liabilities for tanker operators.

As regards the International Oil Pollution Compensation (IOPC) Fund, the focus is now on the new Working Group that has been set up to consider, inter alia, the role of insurers in promoting quality shipping within the ambit of the current IOPC regime. The initial meeting of this intersessional Working Group has taken place and at present it is still establishing its focus of activity. INTERTANKO is actively participating in its deliberations and encouraging states to consider what measures they can take to promote quality shipping.

Earlier in the year the Committee had actively engaged in consultations and discussions, seeking an amendment to the Joint War Committee’s (JWC) list of areas of perceived enhanced risk. The Committee was pleased to note that in July the list was revised with the majority of the Straits of Malacca and Singapore being de-listed.

Other items discussed have related to P&I including matters concerning re-insurance, extent of cover and policy issues. INTERTANKO is seeking to ensure that a strong dialogue is maintained with the International Group of P&I Clubs to ensure that adequate account is taken of the views of independent tanker operators.

INTERTANKO Offshore Tanker Committee (IOTC)

Chairman
Capt John Einar Dalsvaag

Members:
Capt John Einar Dalsvaag (Chairman), Knutsen OAS Shipping AS
Carl Adam Bech, R.S. Platou Shipbrokers AS
Atle Bergshaven, Bergshav Management AS
Dr. Giorgio Biassoni, Premuda, Italy
Torfinn Buarøy, Bergesen dy ASA
Halvor Ellingsen, Uglands Rederi AS
Bas Gerrits, Bluewater Group of Companies
John Harding/John Sowter, Northern Marine Management Ltd
Stuart Holtby, SBM Production Contractors Inc
Eimod Hope, A/S J. Ludwig Mowinckels Rederi
Paulo Roberto Jansen Ferreira, Petrobras Transporte SA
John W. Lovell, Alliance Marine Services LP
Henrik Møller, Petrojarl ASA
Claus Mørch, Anders Wilhelmsen & Co AS
Fred Richardson, Teekay Maritime Services AS, Norway

Main aims:

• Represent the interests of owners of shuttle tankers, FPSOs and FSUs
• Provide regulatory updates
• Be a forum for the exchange of safety information
• Develop training programmes and address common safety issues

Under the chairmanship of Capt John Einar Dalsvaag, INTERTANKO’s Offshore Tanker Committee has continued to discuss issues important for operators of shuttle tankers and storage tankers in the offshore sector, and also to agree on followup action.

The Committee has considered the possibility of developing unified and consistent standard procedures for hot work on stationary sea units like Floating Production, Storage and Offshore Loading facilities (FPSOs/FSUs). Since the International Safety Guide for Oil Tankers and Terminals (ISGOTT) procedures have been primarily drafted as standard procedures for steel repairs and steel renewals in dry docks for commercial tankers, the Committee considers that alternative procedures need to be developed for offshore units that cannot easily call at a dry-dock for simple repairs. Such a guide for hot work onboard FPSOs should be based on a risk assessment concept - both of the procedures undertaken in preparation for this activity and also of the precautions taken during the hot work.

The Committee also agreed to have a permanent issue on its agenda, called "Incident reporting". The members of the INTERTANKO Offshore Tanker Committee share information and experience on various incidents and corrective actions taken. They will consider whether it would be appropriate to share such material with members and with the industry as a whole. The Committee has sent a strong appeal to INTERTANKO’s

Vetting Committee for sustained action to address the issue of the oil majors’ new Officer Matrix, particularly the matrix used by one European oil major. Although recognising that this system creates a lot of problems for all tankers, the Committee noted particular negative consequences for Shuttle Tankers, for which the group for selection of seafarers is narrower since shuttle tanker officers need additional qualifications and training programmes (e.g. dynamic positioning) as compared with other tankers.

INTERTANKO Safety, Techincal and Environmental Committee (ISTEC)

Chairman
Dean Tseretopoulos
Secretaries: Dragos Rauta, Howard Snaith, Tim Wilkins and Fredrik Larsson

Members:
C.D. Tseretopoulos, (Chairman) Thenamaris Ships Management Inc
Capt Nigel J. Adams, V. Ships (UK) Ltd
Capt Marco Ahrens, Interorient Navigation Co Ltd
Anil Ahuja, (IMC Pan Asia Alliance Pte Ltd) Aurora Tankers
Nils Kristian Berge, Laurin Maritime (America) Ltd
Stamatis Bourboulis, Euronav Ship Management (Hellas) Ltd
Michael Bruce, World Tankers Management Pte Ltd
Thanos Crassaris, Springfield Shipping Co Panama SA
Stavros Daniolos, Minerva Marine Inc
Jens Eybächer, Scorship Tankers GmbH & Co KG
Capt Haruhisa Fujino, NYK Bulkship (Eur) Ltd
Mogens S. Fynbo, A/S Dampskibsselskabet Torm
Dr. Timothy Gunner, Consultant
Oleg Kalinin, Unicom M’ment Serv. (Cyp) Ltd
Dimitrios Kosmas, European Navigation Inc
Takis Koutris, Roxana Shipping SA
Per Laböm, Concordia Maritime AG
Douglas Lang, Anglo-Eastern Ship Management (UK) Ltd
Lars Lundegaard, Dampskibsselskabet "NORDEN" A/S
William Millar, Stolt-Nielsen Transportation Group BV
Dr.Ing. Stephan Polomsky, Transocean Shipmanagement GmbH
Capt Prabhat Sharma, V. Ships Switzerland S.A
Fabio Tagliavia, d’Amico Societá di Navigazione SpA
Konstantinos Vavourakis, Magnus Carriers Corp
Henrik von Platen, Saudi Maritime Holding Co
Derek Walford, Teekay Shipping (Canada) Ltd

Main aims:

• Promote safety at sea and the protection of the environment through communication and sharing experience.
• Foster co-operation with the IMO, IACS, OCIMF, ICS and other recognised bodies involved with tanker safety and the protection of the environment.
• Represent INTERTANKO at IMO and other industry fora so as to ensure proper representation on appropriate committees and working groups developing safety and environmental legislation and regulation.
• Advise on aspects of safety, environmental protection operation of tankers and training in order to promote efficient and professional ship operation.

Dean Tseretopoulos, of Thenamaris Ships Managment Inc, was reelected as Chairman of the INTERTANKO Safety, Technical and Environmental Committee (ISTEC) for another two year period. The Committee continues to discuss the key technical issues relevant to safety and the environment.

ISTEC monitored and made a significant contribution to developing the IACS Common Structural Rules (CSRs) for tankers and for bulk carriers which were adopted by the IACS Council on 14 December 2005 for implementation on 1st April 2006. ISTEC would have liked some elements of the rules to have been to a better standard, as recommended by INTERTANKO during the rule development process. However, overall, the positive features of the CSRs outweigh those elements yet to be improved, and the majority decision of the Committee was to reiterate support for the new rules, which INTERTANKO welcomes and endorses. The Committee was pleased to see that the CSRs have included the new performance standards for coating application in ballast tanks.

The Committee considered the new IACS Unified Requirement on Hull Survey for New Constructions (URZ23) adopted after consultation with the industry. ISTEC concluded that URZ23 should be more detailed in describing the activities and obligations of class during ship construction, in specifying minimum/adequate number of surveyors for each ship survey, and in stipulating that the owner must attend the kick-off meeting of the survey planning. INTERTANKO has suggested that URZ23 includes a clause, whereby class and yard agree and indicate to the owner the number of surveyors assigned to each newbuilding; and adds the provision that, in case of series construction, the history of changes from original spec and drawings should be available at the kick-off meeting for each vessel in the series.

The current Winter/Summer Traffic Zones and Load Line Rules off the Cape of Good Hope (CoGH), mean that vessels westbound in the Traffic Separation Scheme remain inside the Summer Load Line Zone (SLLZ), but eastbound vessels in the same Traffic Separation Scheme pass briefly through the Winter Load Line Zone (WLLZ). This means that eastbound vessels have to reduce cargo intake so as not to be overloaded in the WLLZ. ISTEC suggested that it would be sensible for the WLLZ to be moved further south, allowing both traffic lanes of the CoGH Traffic Separation Scheme to lie in the SLLZ. INTERTANKO undertook to study the reasons for the current position, and to evaluate ISTEC’s suggestion.

INTERTANKO has continued its participation in the European Maritime Safety Agency (EMSA) Panel on Double Hull Tankers together with BIMCO, IACS, IMO, OCIMF, CESA (the Community of European Shipyards’ Associations) and the European Commission (DG TREN), and has been following up on the EMSA/Industry Panel’s final report, released in May 2005, which contained eight recommendations for further action. ISTEC has been much involved in the follow-up for an amendment to SOLAS to require that all double hull tankers have fixed gas sampling systems for detection of hydrocarbon vapours in spaces adjacent to cargo oil tanks. ISTEC took the lead and developed a first draft for amendmentsto SOLAS and, joined by IACS, presented a final draft which was submitted to the IMO/Maritime Safety Committee in December 2006. Other developments from the EMSA/Industry Study recommendations have included active participation in an IACS/Industry Joint Working Group to set a coating performance standards for cargo oil tanks.

Oily water separators (OWS) remain a vexed issue for the shipping industry. Since 1st February 2006, the Paris and Tokyo Port State Control (PSC) MoUs and members of the Vina del Mar PSC Agreement have launched concentrated inspection campaigns focusing on OWS, and have already reported on a significant number of violations. New cases were also recently reported by the U.S. Department of Justice. ISTEC supervised the revision of INTERTANKO’s proactive and successful "A Guide for Correct Entries in the Oil Record Book".

As a matter of priority, ISTEC, in conjunction with INTERCARGO’s technical committee (CASTEC), have agreed to develop a "Guide on Engine Room Waste Treatment Associated Systems (ERWTAS)". The Guide will suggest recommendations for a) improving the design of installations to facilitate better treatment of bilge water and ship-generated sludge; b) revision of some current MARPOL provisions, to adopt more practical size and design for incinerators, sludge tanks and bilge holding tanks; c) a few more specific entries in the Oil Record Book as a consequence of these changes; d) procedural approaches and compliance, including the need for formal training in using these installations. INTERTANKO will approach OCIMF and the oil majors to discuss further operational details specific to tankers, such as possible allowance to transfer sludge to slop tanks.

Following a request from INTERTANKO’s Executive Committee, ISTEC developed an internal Strategy Paper for the revision process of MARPOL Annex VI. The Strategy Paper noted that the alternative proposals for further reduction of air pollution from ships consider onboard technologies and restrictions on which type of fuel may be used in open sea, closed areas and ports, but do not consider a simpler and more straightforward solution such as mandating the use of distillate fuels only. Therefore ISTEC developed a Strategy Paper which met the principles set by the Executive Committee to (a) ensure a solid platform of requirements, (b) be realistic and feasible, (c) seek a long-term and positive reduction of air emissions from ships, and (d) contribute to a long-term and a predictable regulatory regime. The Strategy Paper suggested that ships could be mandated to use distillate fuels only with a sulphur content of 1.0% (tier 1) and 0.5% (tier 2) respectively, with the latter applicable to new engines and when fuel supply will be considered realistic. The Strategy Paper suggested eliminating SECAs by extending SECAs as a global requirement. Last but not at least, the Strategy Paper suggested that, in regulating air pollution from ships, the IMO should regulate not only the emissions, but also the fuel, and mandate a well-defined specification for fuel acceptable from a safety and quality point of view.

INTERTANKO and the Tanker Structure Cooperative Forum (TSCF) have jointly agreed to produce a guide on maintenance standards - an owner’s manual. The purpose of this manual is to draw on previously published guidance, and combine it with the latest experience of the Forum’s and INTERTANKO’s membership, to produce a book that can be used by any owner or manager of any tanker afloat as a guide to effective maintenance of the structure. The Guide recommends standards for the various elements of maintenance, such as paint condition, steel thickness and the acceptability (or not) of fractures. In adopting the standards laid down in this manual, an owner should be confident that he meets the requirements of class, charterers, of the IMO and of the ISM Code.

ISTEC continued its work on appropriate Guidelines for Service and Maintenance of Life Saving Equipment. The secretariat, on behalf of ISTEC, visited lifeboat manufacturers in Europe to discuss issues related to saving lives at sea, and concerns related to the IMO Guidelines for service and maintenance of lifeboats, launching appliances and on-load release gear (MSC.1/Circ.1206) approved at MSC 81 in May 2006. Our major concern was that several manufacturers did not seem to have the appropriate service organisation in place to cope with more demanding authorised inspections. At MSC 82 in November 2006, the Guidelines were not adopted, because the MSC had the same concerns as INTERTANKO, and decided that the Guidelines need to be further reviewed before becoming mandatory.

The committee maintains its Pilotage Working Group and its focus on core-related issues, cooperation and dialogue with the pilotage associations continues to grow.

INTERTANKO continues its focus on security developments at the IMO in cooperation with Round Table partners and assists the membership through direct contacts and lobbying efforts when required. Issues related to access control, crew change, shore-leave and other issues still call for occasional INTERTANKO action. INTERTANKO is furthermore engaged in such work to include security aspects in the Standards of Training and Watchkeeping Convention and Code as recently addressed at the IMO.

IT Committee

Chairman
Eyvind Klewe
Secretaries: Minerva R. Alfonso

Members:
Eyvind Klewe (Chairman), Broström Tankers AS
Stephen Chapman, Intermanager
Farzin Karma, Paralos Maritime Corporation SA
Rob Lomas, INTERCARGO
Patrick Slesinger, Wallem Shipmanagement Ltd
Tristan Washington, Stolt-Nielsen Inc

(Associate Members’ part-participation for advice/expertise):
Bob Kessler, ABS Nautical Systems (Issue: Referential Library of Ship Equipment)
Robert Rayner, IDESS (Issue: IT Training for ship / shore staff)
Peter Fah, MESPAS (Issue: Referential Library of Ship Equipment)

Main aims:

• To provide an open forum for its members in order to develop better awareness of a) IT opportunities / solutions b) IT needs of the tanker industry.
• To contribute to improve efficiency and enhance safety standards by applying information technology within the independently owned tanker sector in particular and the shipping industry in general.

2006 has been a busy year for the re-established IT Committee. The Committee had 4 meetings during the year under the Chairmanship of Eyvind Klewe, who took over from Richard Hext, former CIO of V.Ships.

One of the Committee’s most important tasks has been to launch a pilot project for a reference library of ships’ equipment. It agreed at its September meeting to develop a repository where INTERTANKO members can download/upload ship equipment manuals and share information. The reference library will be categorised, with possible areas of focus on the following equipment categories: Marine Pollution Prevention, Life-Saving Appliances, Fire Protection, Navigation Equipment and Radio Communication.

The lack of ship equipment manuals, as well as the difficulty of obtaining these from manufacturers, has been a long-standing issue in the IT Committee. It was first raised by INTERTANKO Managing Director Peter Swift in September at the Tripartite meeting in Seoul between shipowners, shipyards and classification societies, and a fair degree of interest was shown by all parties, although practical and intellectual property rights were recognised as issues needing to be resolved.

The aim is to initiate a pilot project by the end of March 2007 on INTERTANKO’s website, with the objective of developing a central data library with fields that will link to suppliers’ details, spare part books, catalogues and planned maintenance settings on any particular product and/or its components. For the purpose of the pilot project, the Committee agreed initially to focus on the category of marine pollution prevention equipment.

In much the same way as the repository of manuals for ship equipment, the Committee also agreed that it will be useful for IT Departments of INTERTANKO members to have a repository of standards and codes which can be used, among other things, for developing databases - for example universal currency codes, country codes.

With reference to members’ replies to the IT Questionnaire which was sent-out in 2005, the following were noted as areas in training which were most relevant to INTERTANKO members:
a) IT training for crew
b) Computer-based training (CBT)
c) on-board distance learning software.

At the request of the Committee, Robert Rayner from IDESS, an independent organisation providing training services to the maritime and offshore industries, gave a comprehensive presentation at the September meeting.

The Committee agreed that the potential activities and the issues of this Committee are applicable to other associations, and that it would be of mutual benefit if associations like INTERCARGO and Intermanager participated in the Committee.

The Committee reviewed and amended its terms of reference which will be submitted to the Council for approval at its meeting in Houston in March 2007.

Vetting Committee

Chairman
Capt Bob Bishop
Secretary: Capt. Howard Snaith

Members:
Capt Bob Bishop (Chairman), V.Ships Limited
Alan Johnson, (Vice-Chairman) Tsakos Shipping & Trading SA
Capt Michael Wilson, (Vice-Chairman) Laurin Maritime (America)
Peter Abildgaard, A/S Dampskibsselskabet Torm
Capt Ashley Cooper, Scorpio Ship Management SAM
Capt Antonis Filippidis, Roxana Shipping SA
Steve Hardy, Interorient Navigation Company Ltd
Capt Andy Hill, MOL Tankship Management Ltd
Capt John Hill, HEIDMAR Inc
Capt Amit Jain, Unix Line Pte Ltd
Capt James Jeeris, Petroships Pte Ltd
Ken Marshall, Neda Maritime Agency Co Ltd
Capt Svein Ommundsen Frontline Ltd
Capt Dinesh Pradhan, Teekay Shipping (Singapore) Pte Ltd
Capt Raja Rajalingham, Malaysia Int'l Shipping Corp
Capt Graeme Ross, Hanseatic Shipping Company Ltd
Patrick Russi, Stolt Parcel Tankers Inc
David Sharp, Unicom Management Services (Cyprus) Ltd
Capt Cosmas Thiraios, Kyklades Maritime Corp Inc

Main aims:

• The Committee’s main aim is to foster INTERTANKO members’ interests in relation to inspections and screenings undertaken and performed by port state control, the United States Coast Guard, oil and chemical charterers, P&I Clubs, hull underwriters, and terminals etc. with the long term goal to reduce the proliferation of multiple inspections.

  To this end the Committee:

• Promotes recognition for the statutory work performed by the classification societies with an emphasis on the IMO enhanced program for the survey of oil tankers, e.g. The Enhanced Survey Program (ESP), and the Condition Assessment Program (CAS)
• Promotes recognition for owners’ maintenance programmes and self assessment schemes
• Maintains an open dialogue with OCIMF/CDI and the oil and chemical companies to encourage input of INTERTANKO’s ideas
• Participates in relevant industry work pertaining to TMSA
• Produces relevant TMSA benchmarking systems for the benefit of INTERTANKO members
• Encourages co-operation and harmonisation between ship vetting systems
• Encourages the harmonisation of PSC Targeting systems and the sharing of PSC detention information to assist with enhanced targeting
• Encourages the harmonisation of PSC training standards
• Promotes and encourages methods to maintain the integrity of PSC
• Encourages the use of CDI or SIRE by charterers, port state control and others to reduce the number and scope of inspections
• Promotes and encourages the use of INTERTANKO’s Terminal Vetting Database
• Shares the information collated from INTERTANKO’s vetting inspection and PSC inspection feedback forms with interested parties who can use the information to continually improve
• Ensures that work of this group assists in achieving the long-term goals of INTERTANKO

Key issues within the Vetting Committee are now handled by a number of working groups.

Terminal Vetting Database (TVD)
TVD aims to provide a means for ship operators to pre-access terminals their vessels are scheduled to call at so that they can be aware of expected conditions at that terminal; and to use that information in a positive fashion to correct the problems and contribute to a safer environment.

The information gleaned can be used as a starting point for dialogue between shipowner/operator and terminal about any observed terminal deficiencies. It also gives feedback to terminals to allow them to undertake self improvement.

Officer Matrix Working Group and Tanker Officer Training Scheme (TOTS)
The general standing of officer competence across the tanker industry in its entirety does not universally meet with charterers’ expectations.

As a result tanker owners are increasingly finding themselves subject to "time in rank" requirements which are competing and contradictory, making compliance difficult.

The aim of the Officer Matrix Working Group is to have a coordinated response from INTERTANKO to develop a commonality of standard and facilitate achieving compliance.

INTERTANKO is seeking to establish a training standard which, when complied with, will ensure tanker officers’ competence for both oil and chemical tankers, and will be accepted as the norm of a competent tanker crew.

SIRE Inspector Working Group
Getting access to SIRE inspectors has become a problem for tanker operators due to their shortage. The Working Group will work with OCIMF/SIRE to collect information on inspector locations, and establish ways we can maximise utilisation of inspectors in order to enable members to facilitate inspections efficiently.

Vetting Publication Working Group
INTERTANKO will continue to collect information from the oil majors and produce, with the co-operation of the individual oil majors, a publication to allow tanker operators to better understand the oil majors’ requirements and prepare themselves for inspections.

Detention Statistics/Ships’ Age Working Group
Age is frequently a detention criterion. Acceptance of the current age limits today will create a decrease in age limits, leading to a trend of reduced investment in long-term quality vessels. Maintenance is more important than age.

The Working Group is also coordinating and collating detention information in a manner which can be readily understood in order to allow our members to use this information as advice or as a comparative tool to improve their performance and the safety and environmental protection of their vessels.

Vetting Clause Working Group
Vetting clauses abound which are unreasonable and arbitrary and contrary to industry practice.

The Working Group has collected all vetting clauses in circulation today and published them with an advisory commentary so that people can know and understand the benefits and pitfalls of each of the clauses. It will go on to develop a model INTERTANKO vetting clause, which can be practically used to the reasonable satisfaction of both parties in a charterparty negotiation.

During 2006 INTERTANKO produced its Vetting Clause book in cooperation with the Documentary Committee.

TMSA working group
Terms of Reference for this group are as follows:

• Issue guidelines and assistance pertaining to TMSA for the benefit of INTERTANKO members
• Help and assist INTERTANKO members with establishing what the TMSA requirements are for each oil company
• Establish how TMSA is applied by each oil company with regard to spot, COA and time charters
• Maintain an open dialogue with OCIMF and the oil companies to encourage input of INTERTANKO’s ideas
• Participate in relevant industry work pertaining to TMSA
• Promote inclusion of INTERTANKO comments in future revisions of TMSA
• Production of relevant benchmarking systems for the benefit of INTERTANKO members
• Production of relevant analytical data
• Ensure that work of this group assists in achieving the long-term goals of INTERTANKO

The committee has produced its TMSA benchmarking database and this is available on our website.

Port state control
Port state control (PSC) plays a role in ensuring standards of safety and environmental protection are maintained.

INTERTANKO supports and encourages PSC in this function to identify sub-standard vessels and maintain an ongoing, open dialogue with the world’s PSC MoUs and coastguard organisations.

INTERTANKO has also developed a Standard Inspection Feedback form to supply confidential information that can be used in a statistical format to assist our ongoing discussions with PSC, oil majors and vetting establishments such as CDI and SIRE.

INTERTANKO encourages PSC to utilise not only targeting systems but common targeting systems as effective tools to identify sub-standard vessels. The USCG and the Paris MoU already have such targeting systems in place which are encouraged by INTERTANKO. We also believe that better targeting of the substandard vessel will in itself create a reward for the good owner - fewer inspections for them.

INTERTANKO is striving for harmonised targeting systems to be expanded to other MoUs, with a greater sharing of inspection records between MoUs, and full use of analysis of PSC performance and records. INTERTANKO continues to work to ensure that the integrity of PSC is maintained and encourages our members to advise us in instances where this is not the case. INTERTANKO would like to see the charterer named in addition to the owner when a vessel is detained.

INTERTANKO is seeking to have an independent detention Review Board created within each MoU to review detentions in the event an owner feels a detention is unjustified. We have seen a lot of success in this area with the Paris MoU instigating its independent detention review process, followed by the Tokyo MoU and recently the Mediterranean MoU. The Committee is working on the subject of vessel questionnaires and is cooperating with Q88 (www.q88.com) in supplying a service to INTERTANKO members. The revision of Questionnaire 88 (version 2) is now currently available and widely in use.

Vetting seminars continue to be hosted globally. Recent events in Houston, London and India have proved successful, with future events to be held in Houston, Athens, Hong Kong and the Philippines. Members are regularly updated via our Vetting Contact Bulletin system regarding changes in procedures, contacts and requirements related to vetting and PSC, the production of circulars regarding Officer Matrix & Newbuilding requirements, and various definitions and guidance documents aimed at providing the most up-to-date information to our members.

Worldscale Committee

Chairman
Bengt Hermelin
Secretary: Kristian Fuglesang

Members:
Bengt Hermelin (Chairman), Saudi Maritime Holding Co
Capt Bruno Ausiello, Fertika Trading and Transport Srl
Tim Horne, Teekay Shipping (UK) Ltd
Mark Linham, Eletson Maritime Limited, London
Kevin MacKay, AET
Hiroaki Okada, Mitsui OSK Bulk Shipping (Europe) Ltd
Christian Østrup, Laurin Maritime

Main aims:

• To ensure that any schedule of nominal freight rates should be as useful for comparison purposes as is practicable
• To keep under review the Schedule of Nominal Freight Rates published by the Worldscale Association or any other standard of reference intended to be used for the comparison of rates and market levels
• To co-operate and develop a constructive dialogue with such interested parties in the tanker industry as may be useful to further the Committee’s aim
• To generate ideas and make recommendations, where appropriate, both in terms of policy and in specific cases
• To assist members in their understanding of the Worldscale system

An important part of INTERTANKO’s work on Worldscale issues is to provide members with interpretation and advice on the Worldscale system and to represent INTERTANKO’s members through close contact with the Worldscale Associations in London and New York, both on fundamental principles and practical details.

INTERTANKO’s Worldscale Committee has urged the New York Worldscale Association to reflect the costs associated with the International Ship and Port Facility Security Code (ISPS Code) for voyages involving ports where the Worldscale Associations have been notified of the charges. From 2006, this has been done for all ports except for those in the U.S. The New York Association have so far resisted these suggestions, stating that there “are many varied costs assessed by the various USA terminals, port authorities under the heading of “Security Costs” which may or may not actually be for security. Normal commercial USA ports are not clearly specifying security costs. Some costs are being paid by the terminal, some by the port, some directly by the owner and some directly by the charterer.” INTERTANKO will continue in its efforts to remove this anomaly.

INTERTANKO’s Worldscale Committee has been in dialogue with the Worldscale Associations regarding the implications of new requirements to use special fuel (e.g. low sulphur fuel) in certain areas, as a result of the introduction of SOx Emission Control Areas (SECAS). The Worldscale Associations accept that our concerns are valid, but they find that they do not yet have sufficient information about prices, availability etc, to make sufficiently correct amendments to the Schedule at this stage. The dialogue continues.

The electronic version of the Worldscale schedule continues to be enlarged, there are about 425,000 voyages included in the system, whereas the printed edition has only about 73,000 voyages. INTERTANKO and the Worldscale Associations have enjoyed an open relationship over many years. The dialogue is positive and constructive, even if we do not always manage to reach complete agreement.