Associate Members Committee (AMC)

Chairman Brad L. Berman Secretary: Gunnar Knudsen Members: Brad L. Berman (Chairman), Liberian Ship Registry Dirk Lindenau, Lindenau GmbH Schiffswerft & Maschinenfabrik Karl Lumbers, UK P&I Club Wilhelm Magelssen, Det norske Veritas Basil G. Mavroleon, Charles R. Weber Co Inc Peter W. Mollema, Port of Rotterdam Charles W. Parks, Tesoro Maritime Company Leigh A. Phillips, Biehl & Co Inc Iain M. Shaw, St. James’s Chartering David Usher, Marine Response Alliance Main aims: To provide a forum for the Associate Members to enable them to contribute and benefit fully from their membership of INTERTANKO, to get their issues and concerns debated, and to interact with the membership. To assist the Council /Executive Committee by contributing relevant issues/topics and organising appropriate events.

The Associate Members Committee (AMC) held an Open Hour during the Houston Tanker Event in March 2007. The aim was to encourage enhanced contact between AMC and the associate members, by AMC presenting itself and the scope of its recent activities and inviting ad hoc input. Although the gathering produced only a handful of delegates, the AMC and those associate members who attended nevertheless rated the meeting a success. The presence of INTERTANKO’s Managing Director at the Open Hour also allowed ad hoc discussions outside the AMC’s normal agenda.

The AMC will endeavour to arrange, subject to time availability, additional Open Hour sessions at future Tanker Events.

The AMC reiterates its desire to stimulate the utilisation of the expertise represented in AMC and the associate membership at large. It has already offered its services as contributors to Istanbul Tanker Event sessions and enjoys a close cooperation with the organisers.

The AMC has invited a closer cooperation with other INTERTANKO committees. It has offered to provide input to other committee agendas, as found relevant, and/or occasionally to sit in on other committees as observers in order to identify new areas of possible cooperation and enhanced service or benefits to INTERTANKO members.

An environmental debate conducted at an inter-sessional AMC meeting in June for the purpose of defining AMC’s place in environmental matters will in all likelihood be continued at the Instanbul AMC meeting. The AMC will invite a representative from this field, or from the Environmental Committee, to attend the AMC meeting for this purpose.

AMC continues its quality screening of all applications for associate membership and gives its recommendations and comments as part of the formal Council approval process.

Bunker Sub-committee

Chairman Takis Koutris Secretary: Dragos Rauta Members: Takis Koutris (Chairman), Roxana Shipping SA Ian Adams, The International Bunker Industry Assoc Ltd (IBIA) Michael Agerholm, A/S Dampskibsselskabet Torm Gus Barriga, Novoship (UK) Ltd Richard Bracken/Mr. Mike Salthouse, North of England P&I Assoc Ltd Stavros Daniolos, Minerva Marine Inc Bernard Esmiol (2007), Eric de Geyer (2008), Brostrom Tankers SAS Wanda Fabriek, Lloyd’s Register of Shipping Timothy Gunner, Consultant Geoff Jones/Maurice O’Donoghue, Lintec Testing Services Ltd Trevor Leney, Andros Maritime Agencies Ltd Angus Ogilvie, Cockett Marine Oil Co (representing IBIA) Patrik Pettersson, Stena Oil AB Klaus Stamp, Dampskibsselskabet ‘Norden’ AS Olav Tveit, Det Norske Veritas Tim Wilson, Lloyd’s Register of Shipping (FOBAS) Andy Wright, ABS Europe Ltd Main aims: Encourage better understanding of bunker related issues for the membership. Give guidance to enable the promotion of the interests of Members with regard to bunker issues including air pollution and VOC emissions from tankers. Keep members advised on a regular basis through the Weekly News.

Key issues:
The Bunker Sub-committee met inMarch 2007 jointly with its main Committee, INTERTANKO Safety, Technical and Environmental Committee (ISTEC), when some common issues were discussed (see under ISTEC). Its second meeting followed in August.

Key discussions and conclusions included air pollution from ships including emissions trading; bunker quality (incl non-compliance with Annex VI); bunker sampling and Annex VI Guidelines; Engine Room Waste Treatment Associated System (ERWTAS) – Best Practice Guide; IMO revision of regulations and guidelines for onboard waste; reduction of GHG emissions from ships; SECA trading experience; sulphur specs for fuel oils; revision and implementation ofMARPOL Annex VI.

Reduction of GHG Emissions from ships
INTERTANKO will suggest a list of possible measures/actions tanker owners could consider to achieve a reduction in GHG emissions.

Bunker quality
The Sub-committee discussed reported incidents with fuels (shown to be within ISO 8217 standard spec) which created serious problems for engines. The Sub-committee will explore more initiatives to prevent bunker quality problems, rather than considering approaches related to commercial disputes. Also discussed were bunkering experiences not in compliance withMARPOL Annex VI, with reports from ships, feedback from Port State Control and the stance of Flag Administrations.

Experiences with trading in SECAs
The Sub-committee shared experiences with regard to a) fuel changeover operations; b) incidents due to incompatibility between fuels used outside/inside SECAs; c) incidents due to misfits between Low Sulphur Fuel Oil (LSFO) and the Base Number (BN) of cylinder oil; d) reports from ships with regard to compliance, and shipowner problems when tests results of bunkers delivered show sulphur above 1.5% for SECA fuels. INTERTANKO’s Model Clause for bunker supply contracts may be reviewed to cover the recognition of commercial test results taken under the same conditions as the MARPOL sample.

New SECA – North Sea & English Channel
The Sub-committee discussed the inter-relation of the IMOMARPOL Annex VI designation of the North Sea (including the English Channel) as a Sulphur Emissions Control Area (SECA) effective 22 November 2007, and the EU Sulphur Directive 2005/33/EC calling for the North Sea and the English Channel to become SECAs (max SO2 content 1.5%) on 11 August 2007.

IMO Working Group on Revision of Design and Standards of Shipboard Waste Management Handling Equipment
(MEPC. Circ. 511)
INTERTANKO was one of the initiators of the IMO activity for the revision of all relevant regulations and guidelines issued by the IMO on onboard waste treatment. These revisions further impact on the development of an industry Guide for Best Practices on Engine Room Waste Treatment Associated Systems (ERWTAS).

The U.S. proposed to the IMO’s Marine Environment Protection Committee 56th session (MEPC 56) the mandatory phase-out of oily water separators and oil discharge monitoring systems complying with resolutions MEPC.60(33) and A.586(14) respectively, which had been superseded by resolutionsMEPC.107(49) andMEPC.108(49) – with a five-year phase-out period for equipment changes. MEPC 56 was supportive, but the five-year timeframe was judged too short and it referred the discussion to the DE Sub-committee (Design and Equipment.

Chemical Tanker Committee (CTC)

Chairman Svend Foyn-Bruun Secretary: Capt Howard Snaith Members: Svend Foyn-Bruun (Chairman), Odfjell Seachem Bertil Andersson, Laurin Martime AB Capt Ozgur Asik, Dunya Denizcilik Ve Ticaret AS Bruno Caillard, Brostrom Tankers SAS Alasadair Campbell, MOL Tankship Management (Europe) Ltd Luciano Casella, Finbeta SpA Capt Anuj Chopra, Anglo Eastern Ship Management Capt Steve Hardy, Interorient Marine Services Torbel Hertel, Eitzen Chemical A/S Amit Jain, Unix Line PTE Capt Moriya Michihisa, Iino Singapore Ltd Bill Millar, Stolt Nielsen Transportation Group BV Harald Nesse, Jo Tankers AS. Capt John Pocklington, Norbulk UK Ltd Steffan Tunge, B&H Equimar Singapore Ltd Capt George Vasilakis, OSG Ship Management Ltd Roel Vermeulen, Broere Shipping BV Main aims: To further the interests of independent chemical tanker owners with regard to the continuous enhancement of relevant safety issues, pollution prevention, and regulatory matters To act as a resource group for INTERTANKO and wherever possible act as a link with the chemical industry and its organisations with the aim of ensuring that chemical tanker owners interests are reflected in the chemical industry’s day to day activities Actively develop and continue its dialogue with the International Maritime Organisation (IMO), International Chamber of Shipping (ICS), Federation of Oils Seeds and Fats Association (FOSFA), European Petrochemical Association (EPA), European Chemical Industry Council,(CEFIC), and other chemical/shipping associations with a view to developing mutual cooperation where it is found useful and beneficial to INTERTANKO members to do so, to enhance safety, prevent pollution and improve regulatory issues.

INTERTANKO represents over 80% of the worlds parcel tanker and chemical tanker fleet and the CTC’s effectiveness continues to broaden and deepen. INTERTANKO continues to hold positions on the CDI Executive Board, CDI Accreditation Committee, CDI Audit Committee, and CDI Technical Committee. It is a co-opted member of the FOSFA Oils & Fats Committee (Federation of Oils Seeds & Fats Association). It enjoys reciprocal associate membership of NIOP (National Institute of Oilseed Products).

Main issues/achievements

1. Information Supply
CTC ensures that information on chemical regulatory issues is provided to members on a regular basis viaWeekly NEWS bulletins; Chemical Bulletins issued most weeks directly to members requesting them; biannual production of “INTERTANKO Chemical Review”; production of guidance publications, reports and surveys; chemicalrelated seminars for INTERTANKO members

2. Chemical Tanker Safety
The inert gas debate continues within the IMO framework with INTERTANKO continuing aggressively to pursue its goals in this regard, as endorsed by the Council. INTERTANKO is working closely with the Inter-Industry Group on a proposed submission to the IMO to review existing STCWrequirements for a seafarer to gain his Dangerous Cargo Endorsement (DCE). This in part proposes expanding some applications of the DCE to shore staff as well as making its acquisition more robust. The Committee is addressing concerns over inert gas and gasfreeing requirements identified by INTERTANKO as contradictory and creating confusion.

3. CTC/CTSCA Working Groups
FOSFA Banned Last Cargo (CTC) has been very active undertaking real time field tests to evaluate cleaning techniques on stainless steel cargo tanks regarding vegetable oils in conjunction with the FOSFA banned last cargo list. A formal conclusion is expected shortly. Tank Cleaning TerminologyWorking Group (CTC) has been addressing the ever-increasing stricter cleaning standards required by charterers, which vary from port to port for the same product and may even vary for the same product with the same charterer. The intention is to establish, in cooperation with major chemical charterers, a limited set of tank cleaning standards (not cleaning techniques) that can be applied for the majority of relevant bulk liquids. Best PracticeManagement Cargo Vapour Emission Reduction (CTSCA) is being coordinated by the CTSCA (See CTSCA report).

4. MARPOL Annex II
The transition to the revisedMARPOL Annex II in January 2007 was fairly smooth, though both Committees have been addressing some issues that remain to be resolved.

Pre-wash. There have been problems obtaining the information on product viscosity and melting point which is required to determine whether some of the vegetable oils require a pre-wash or not. With the assistance of INTERTANKO, the IMO has now produced an MSC/MEPC circular on this, and INTERTANKO has produced an “optional” shipping document for use if required.

Line draining. The Committees have made a submission to the IMO highlighting the increasingly common practice by terminals of requiring the shore line to be drained back to the vessel following completion of discharge in compliance with the P&A Manual – in contravention to MARPOL Annex II regulation 18. Toxicity data relating to Column “k” in the IBC code in relation to the GESAMP hazard profile.

Biofuels. Consideration of the application of requirements for the carriage of bio-fuels and bio-fuel blends.

Chemical Tanker Sub-committee (Americas) (CTSCA)

Chairman John Salvesen Secretaries: Margaret Doyle (until 3/08), Ajay Gour (from 3/08), Capt Howard Snaith Members: John Salvesen (Chairman), Odfjell USA Sam Ball, Laurin Maritime Alistair Bilsland, Lloyd’s Register Americas Soren Ibsen, Eitzen Chemical Chris Mantooth, Chevron Shipping James Prazak, Dow Chemical Roger Restaino, Stolt Nielsen Transportation Group Phil Rynn, American Bureau of Shipping Jin Sato, Iino Lines Hattori Tsuyoshi Tokyo Marine Company Main aims: To further the interests of independent chemical tanker owners trading in the North and South America region by being closely involved in the following areas: Technical and operational issues affecting all chemical tankers trading in the region Local, national and international regulatory development Pollution prevention and response issues Improvement of safety standards on board chemical tankers trading in the region Security issues specific to chemical tankers trading in the region

The work of the Chemical Tanker Sub-committee (Americas) (CTSCA) continues to enhance the Chemical Tanker Committee (CTC), bringing about effective representation for INTERTANKO’s chemical tanker operator members trading to the Americas and particularly to the U.S.

One of the most important aspects of the CTSCA’s work has focused on reducing cargo tank vapour emissions. During 2006 a CTSCA working group was created to expand upon work to reduce cargo emissions through a process of voluntary implementation of best practices on barges, which had been carried out by the American Waterways Operators, Chemical Transportation Advisory Committee (CTAC), the Louisiana Department of Environmental Quality (LDEQ) and others. With backing from INTERTANKO’s Council to proceed with this work, the CTSCA developed guidelines for best practice for tankers working within port areas, focusing on reducing inadvertent cargo vapour emissions during cargo operations by using good management practices. INTERTANKO’s Council endorsed the final guidelines at its March 2007 meeting.

The CTSCA Working Group continues its work into 2008 with a Phase II effort that is focusing on steps to reduce emissions during tank cleaning operations.

INTERTANKO continues to participate in the European Institute (EI)/American Petroleum Institute (API) working group tasked with reviewing the draft of “HM51, Procedure for Bulk Liquid Chemical Cargo Inspection by Cargo Inspectors.” This document is expected to be completed in 2008.

The CTSCA maintains its relationship and cooperation with Chamber of Shipping of America (CSA), American Chamber of Commerce (ACC), Independent Liquid Terminals Association (ILTA), American Waterways Operators (AWO), American Petroleum Institute (API), National Institute of Oilseed Products (NIOP) and other shipping organisations; These relationships continue to be useful and beneficial for INTERTANKO’s chemical tanker owners.

Other key work issues and involvement of the CTSCA are as follows:

• Implementation of MARPOL Annex II in the U.S. including changes to the US Navigation Vessel Inspection Circular (NVIC) 03-06
• Working with the USCG Hazardous Materials Standards Branch on many of the cargoes (including biofuels) not classified under the 2007 MARPOL Annex II Revisions
• Completion and final implementation of the MARPOL Annex II Third Party Prewash Surveyor Training Module
• Membership and active participation on the U.S. Coast Guard Chemical Transportation Advisory Committee, its Subcommittees and Working Groups
• INTERTANKO’s ongoing chairing of the USCG Chemical Transportation. Advisory Committee’s (CTAC) MARPOL Annex II Working Group focusing on issues not addressed by NVIC 03-06
• Dialog with Houston Galveston Area Navigation and Safety Committee (HOGANSAC) and its Sub-committees
• Continued dialogue with local and state regulatory bodies including the Louisiana and Texas Departments of Environmental Quality
• Participation in the API Chemical Measurement Working Group

The CTSCA fully coordinates its activities with the CTC and complements its work where possible. Recent issues addressed jointly with the CTC include:

• The development of a submission to the IMO in relation to recurring problems with the lack of information and documentation relative to vessels carrying solidifying cargoes – in particular vegetable oils. This Circular (MSC-MEPC.2 Circ 7) was issued by the IMO in November 2007 and was subsequently distributed to the membership.
• In October 2007 INTERTANKO CTC/CTSCA developed and issued an “optional” shipping document complementary to the above circular. This document is used in the event that the information is still not supplied as required by MSC-MEPC.2 Circ 7.
• Submission to the IMO (CTSCA/CTC) raising awareness of the continued practice by some terminals to clear cargo lines back to the vessel upon the completion of NLS cargo operations.

Documentary Committee

Chairman Arve Ustgard Secretaries: John Fawcett-Ellis, (2007) Michele White, (2008) Members: Arve T. Ustgård (Chairman), Teekay Shipping Norway AS William J. Honan III (Vice-Chairman), Holland & Knight LLP Jon Boasson, R.S. Platou Shipbrokers a.s. David Chapman, OSG Tankers (UK) Ltd. Prof Martin Davies, Tulane Law School Tony Dixon, Braemar Seascope Bernard Esmiol, Brostrom Tankers SA* Frode Grotmol, Nordisk Skibsrederforening Jonathan Hare, Assuranceforeningen SKULD (Gjensidig) Capt Mats Karlsson, Stena Bulk AB* Tean Lim, Rajah & Tann Rajeev Philip, Steamship Insurance Management Services Ltd. Henrik Romland, Stena Bulk AB Kevin Rose, E.A. Gibson Shipbrokers Ltd. Anne-Christine Le Saint, Brostrom Tankers SAS Jagadisa Santhanam, Varun Shipping Company Limited Frode Stornes, Odfjell ASA John West, Unicom Management Services* * left the Committee end 2007 Main aims: To further the interests of the independent tanker operators in issues concerning chartering documentation Review new chartering terms and charterparty forms for tankers Assist/advise INTERTANKO’s secretariat on chartering issues Produce publications on tanker chartering and charterparties Provide speakers for the annual tanker chartering seminar organised by INTERTANKO Liaise with other INTERTANKO committees/panels on issues affecting tanker chartering

2007 saw a number of changes in the membership of the Committee. Retiring from the Committee were John West of Unicom Management Services, Bernard Esmiol of Brostrom Tankers and Capt Mats Karlsson of Stena Bulk. The Association is grateful for their contributions to the work of the Committee over a number of years. We were pleased to welcome to the Committee two new members: Henrik Romland of Stena Bulk and Anne-Christine Le Saint of Brostrom Tankers.

John Fawcett-Ellis, INTERTANKO’s General Counsel, who has been the Committee’s Secretary since 1997, handed over this responsibility to Michele White who joined the Secretariat in January 2008 as Legal Counsel to replace John. The Association thanks John for his enthusiasm and great contribution to work of the Committee over the years and welcomesMichele in her new role.

The Committee continues to progress its work programme by means of a drafting group as well as working on projects in committee as a whole.Meetings were held in London inMarch, May, August and November of 2007. The Committee’s first meeting of 2008 was held in January.

The Committee completed a number of projects, these included publication of:

• INTERTANKO Tank Preparation Clause
• INTERTANKO Tanker Preparation Clause for use in parcel trades
• INTERTANKO Agency Clause
• INTERTANKO Ballast Water Management Clauses for voyage and time charters

The Committee was pleased to endorse ASBA’s new charterparty form Asbachemvoy.

The Committee is working on producing new vetting clauses as well as an interim ports clause, owners’ rotation/ completion clause for use in parcel trades, and a bunkering in sulphur emissions control areas clause.

A new publication giving guidance on the latest issue of Shelltime 4 and ShellLNGtime is in the process of being completed.

A successful tanker chartering seminar was held in Houston in March 2007. As ever members of the Committee generously gave their time and participated by presenting papers and taking part in the mock arbitrations session of the seminar. In April 2008 a seminar will be held in Istanbul in conjunction with the 2008 Tanker Event.

Environmental Committee

Chairman Dimitris Stamoudis Secretary: Tim Wilkins Members: Dimitris Stamoudis (Chairman), Minerva Marine Inc Capt Michael Reppas (Vice-Chairman), Seaworld Management & Trading Inc Howard Seto (Vice-Chairman), Teekay Shipping (Canada) Ltd Mohammad A. Al-Gilani, Vela International Marine Ltd Jørn Andresen, Dampskibsselskabet "NORDEN" AS Dr Paul F. Kingston, Heriot-Watt University Marissa Laurin, Laurin Maritime AB Carlos Juan Madinabeitia, Tradewind Tankers SL William D. Millar, Stolt-Nielsen Transportation Group Ltd Dr T. H. (Tosh) Moller, ITOPF Johan Roos, Stena Bulk AB Capt Prabhat Sharma, V.Ships Switzerland SA, Geneva Capt Sotiris Shinas, Euronav Shipmanagement (Hellas) Ltd Capt Sudhir Bhaskar Soman, AET (Singapore) Ltd Maria Sotiriou, OSG Ship Management (GR) Ltd FavioTagliavia, d’Amico Societá di Navigazione SpA Main aims: To develop understanding on environmental issues To participate in an informed manner, so that the issues directly affecting tanker operations are better represented by INTERTANKO for the benefit of its members To develop environmental policies for INTERTANKO to follow up at the IMO and elsewhere, and to be proactive in approach To establish effective dialogue with environmental groups

INTERTANKO’s Environmental Committee has, during 2007 and going into 2008, divided its work programme into clear areas of focus which help in setting the Association’s position relative to regulatory developments on the traditional and well-established environmental issues.

In parallel with the more regulatory-focused discussion, and in line with the Association’s drive for continuous improvement and its commitment to the Poseidon Challenge, the Committee has focused on areas of advancing environmental performance beyond legislative requirements. Specifically the Committee has developed its agenda to include an energy conservation programme aimed at improving a vessel’s overall energy consumption. Sharing information on current programmes and initiatives underway within member companies, the Committee will be able to provide a full set of guidance for tanker companies to implement an energy conservation programme within their own fleets.

Continuing the work on advancing environmental initiatives within the Committee, work has begun on gathering information to establish an environmental benchmarking system. Recognising that individual members have for several years been working in relative isolation, measuring and reducing their environmental aspects as individual companies, the Committee agreed on the compelling need to begin comparing results and sharing information on options to minimise environmental impact.

The Committee continues to give detailed consideration to the draft IMO Convention on Ship Recycling as a new regulatory development, while at the same time assessing the practical implications of the Anti-fouling Systems Convention (due to enter into force in September 2008) and the Ballast Water Convention.

One long-standing current issue is the provision of adequate port waste reception facilities around the world, which continues to hold a priority listing on the Committee’s agenda. The IMO is likely to agree on a harmonised format for an Advanced Notification Form and a Waste Delivery Receipt. Both of these documents are seen by the Committee as essential tools in providing transparency in the waste delivery system as well as efficiency in ensuring that the waste facility providers have ample notification and that a closed loop system is initiated.

Putting together discussion and decisions relating to regulatory developments, with practical considerations relating to the advancement of the tanker industry’s environmental performance, has been a challenge for the Committee. Meeting this challenge has shown the depth and breadth of knowledge and expertise within the Committee. The longest serving member of the Committee is a marine biologist, Heriot-Watt University’s Dr. Paul F. Kingston, one of the founding members of the Committee who continues to provide an experienced and knowledgeable perspective on today’s environmental debates. Other expertise is broad and varied, ranging from naval architects, bio-chemists and marine biologists to those more experienced on a tanker’s deck or in the engine room.

At its first 2007 meeting, the Environmental Committee added depth when specific regulatory and technical issues were discussed and debated in a joint meeting with INTERTANKO’s Safety, Technical and Environmental Committee (ISTEC). A strong bond continues between the two Committees with their first meetings in 2008 being back-toback, ensuring a continued exchange of ideas and views.

At its last meeting in 2007, hosted by Tradewind Tankers in Barcelona, the Committee looked forward to the growing prominence of sound environmental management and practices within the INTERTANKO membership during 2008 and beyond. With guidance on varying environmental issues being established by the Committee it is only natural that such practices begin to form part of a strong foundation within the association’s membership best practice recommendations.

Human Element in Shipping Committee (HEiSC)

Chairman Amir Azizan Secretaries: Capt Howard Snaith and Fredrik Larsson Members: Amir H Azizan (Chairman), AET Inc Capt Ozgur Asik, Dunya Denizcilik Ve Ticaret Prof Mike Barnett, Warsash Maritime University Capt Bob Bishop, V.Ships Capt Anuj Chopra, Anglo-Eastern Shipmanagement Patrick Decavele, Brostrom Tankers Capt Steve Hardy, Interorient Navigation Roger Holt, INTERCARGO Helen Jones, DNV David Koo, Valles Steamship Konstantinos Livanos, Newfront Shipping Denise McCafferty, ABS Marine Services Susanne Meyer, Columbia Shipmanagement Arvind Sharma, Eurasia International Capt Eduard Tkalcic, OSG Shipmanagement Capt Graham Westgarth, Teekay Shipping Main aims: To promote compliance with rules and regulations as well as the availability and utilisation of personnel with the highest quality marine skills and competencies. To assist in the development of measures that highlight the role of the human element in safe, secure and environmentally sound tanker transportation, and in leading the continuous improvement of the tanker industry’s performance as it strives to achieve the goals of zero fatalities, zero pollution, zero detentions.

The Human Element in Shipping Committee (HEiSC) held four meetings in its inaugural year 2007. The Committee undertook a survey of work, projects and studies on the human element in shipping, and has created a database of the material available. This will assist the Committee and will ensure that its work does not overlap or conflict with studies or reports already completed. The database is available for download on INTERTANKO’s website.

Conscious of the shortage of seafarers, HEiSC surveyed members to determine compliance with INTERTANKO’s best practice of having at least two cadets per ship – the objective of which was to increase the number of well-qualified officers available to meet future demand. The survey revealed that there is room for more cadets. Thus HEiSC is discussing ways of bringing cadet supply in touch with cadet demand, and is investigating incentives and encouragement to members to achieve INTERTANKO’s best practice target. To assist with this process HEiSC was assisted by INTERTANKO’s Documentary Committee to produce a model management cadet training clause for ship management contracts.

INTERTANKO has recognised that it would be beneficial for the tanker industry to develop training standards above STCW requirements, and has decided to produce a standard to help the industry achieve this. HEiSC and the Vetting Committee formed a joint working group which has spent significant time and resources developing such a tool – named Tanker Officer Training Standards (TOTS). INTERTANKO has also solicited assistance from theWarsashMaritime Academy and theMalaysianMaritime Academy, who are cooperating with INTERTANKO in developing the simulator and verification modules (WMA) and providing engineering expertise to the system for the engineering modules (MMA) .

Issues related to compliance amongst seafarers have also been addressed by HEiSC in conjunction with the Vetting Committee and elements have been built in to the TOTS system.

TOTS is intended to provide tanker industry standards covering officer competences, onboard and shore training, “time in rank” and “time with company” and also to alleviate the problems and difficulties that tanker owners are encountering with the different “officer matrix” requirements of certain charterers. TOTS incorporates and addresses situational awareness, planning & decision making, communications, teamwork, emotional climate and stress, commercial/organisational/moral pressures, fatigue, occupational health & safety training.

HEiSC further recognises that sea staff serve shorter periods at sea before either coming ashore or leaving the industry. As a consequence, HEiSC has been working to enhance time onboard for serving seafarers, and has been trying to develop new incentives to attract more people to go to sea. In parallel with this work the Vetting Committee has developed a tool to measure officer retention that could be developed into a benchmarking database.

In conjunction with the Vetting Committee, the HEiSC has begun work on a book that aims to provide guidance to members on how to comply with the ILO 180 and STCW work and rest hours. It is anticipated that the ILO 180 guideline will be available early in 2008.

Insurance & Legal Committee

Chairman Ken Marshall Secretaries: John C. Fawcett-Ellis (2007), Michele White (2008) Members: Ken Marshall (Chairman), Neda Maritime Agency Martine Boutellier-Cor (Vice-Chairman), Brostrom Tankers Sozon Alifragis, Newfront Shipping Andreas Andreou, Columbia Shipmanagement Giorgio Biassoni, Premuda James Brosnan, AET John Dunn, Hellespont Steamship Corporation Bengt Hermelin, Samco (Services) Mikitoshi Kai, NYK Badariah Othman, MISC Berhad Nicholas Psarros, Ceres Hellenic Shipping Enterprises Chunfeng Song, China Ocean Shipping (Group) Company Ingela Tengelin, Stena Bulk Geoff Woodford, N.J. Goulandris* Kiran Khosla, International Chamber of Shipping (Observer) * Retired from the Committee after 14 years of service Main aims: To further the common interests of the independent tanker industry with regard to all relevant insurance and liability issues To act as a resource group for INTERTANKO’s Council and other committees as well as the secretariat, To act as a link between INTERTANKO and the insurance industry and its associations/ organisations.

The Committee would like to thank Geoff Woodford, who has stood down after 14 years of service including time as Chairman, and also Mikio Nakashima of NYK who left the Committee in 2007, for their significant contribution to the work of the Committee.We are pleased to welcome to the Committee Sozon Alifragis of Newfront Shipping, James Brosnan of AET and Mikitoshi Kai of NYK.

John Fawcett-Ellis, INTERTANKO’s outgoing General Counsel, who has been the Committee’s Secretary since 2000, has handed over this responsibility toMicheleWhite who joined the Secretariat as Legal Counsel in January 2008. The Association thanks John for his dedication and valuable contribution to the work of the Committee over the years and welcomesMichele in her new role.

As part of its work to maintain contact with the major marine insurance markets, a meeting was held in January 2007 with representatives from the London marine and war risk markets. This afforded the opportunity to have a broad and valuable exchange information and views on insurance industry issues as well as on the particular concerns of tanker operators. It is encouraging that our insurance industry partners are likewise wishing to have regular and proactive discussions, not only on current issues, but also consequences of future social and environmental developments.

In January 2008 the Committee met with representatives of the French marine insurance market. There was a useful exchange of information and thinking on matters pertaining to the marine insurance industry in general and cover requirements for tanker operators in particular.

Committee meetings were held in London in January and June. 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. A hearing before the Grand Chamber of the European Court of Justice took place in Luxembourg on 25 September 2007. At the time of writing this report the judgment of Court has yet to be issued.

The Committee is also active in advising INTERTANKO’s Executive Committee on matters of policy pertaining to insurance issues, particularly those which have the potential to increase liabilities for tanker operators.

The Committee takes a keen interest in developments at the International Oil Pollution Compensation (IOPC) Fund. In particular INTERTANKO has taken an active part in the discussions of the Fourth Intersessional Working Group to Promote Quality Shipping, which has focussed on the role of insurers in promoting quality shipping within the ambit of the current IOPC regime. Also of concern to INTERTANKO has been the need for the International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea (HNS Convention) to enter into force at the earliest possible date and how this can be facilitated.

Other items discussed have related to P&I including matters concerning re-insurance, extent of cover and policy issues. INTERTANKO continues to have an active dialogue with the International Group of P&I Clubs to ensure not only that adequate account is taken of the views of tanker operators but also to discuss measures to improve claims experience.

INTERTANKO Offshore Tanker Committee (IOTC)

Chairman John Einar Dalsvaag Secretary: Dragos Rauta Members: John Einar Dalsvaag (Chairman), Knutsen OAS Shipping A/S Carl Adam Bech, R.S. Platou Shipbrokers Atle Bergshaven, Bergshav Management 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 Stuart Holtby, SBM Production Contractors Eimod Hope, J. Ludwig Mowinckels Rederi Paulo Roberto Jansen Ferreira, Petrobras Transporte John W. Lovell, Alliance Marine Services Henrik Møller, Petrojarl Claus Mørch, Anders Wilhelmsen Fred Richardson, Teekay Maritime Services, 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.

The Committee did not meet this year, but instead exchanged correspondence electronically on some existing issues, including inter alia:

• Competence requirements on shuttle tankers
• Casualty reporting
• Applicability of IMO Conventions to FPSOs and FSUs
• Information concerning tax on NOx-emissions

IT Committee

Chairman Eyvind Klewe Secretary: Minerva R. Alfonso Members: Eyvind Klewe (Chairman), Brostrom Tankers Farzin Karma, Paralos Maritime Corporation Patrick Slesinger, Wallem Shipmanagement Tristan Washington, Stolt-Nielsen Bob Kessler, ABS Nautical Systems Robert Rayner, IDESS Peter Fah, MESPAS 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.

Reference Library of Ship Equipment
The Reference Library of Ship Equipment will be launched in April 2008 and will be made available to members on the INTERTANKO website.

The pilot project has run for a year from end March 2007, and the Committee provided its input through the development of the database which was hosted by MESPAS. The objective is to develop a central data library with fields that will link to suppliers’ details, spare part books, catalogues and planned maintenance settings on relevant products and/or its components. For the purpose of the pilot project, the Committee focused on the category of Marine Pollution Prevention equipment.

INTERTANKO’s IT Committee agreed at its meeting in September 2006 to develop a repository where INTERTANKO members could 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.

Analysing the benefits of on board computer based training (CBT)
One of the initiatives of the Committee in 2007 was to send free trial disks for evaluation to members who have not used on-board CBT as a learning tool for crew training. The CBT sent to members covered:

1. Seaboard Security Training
2. Ballast Water Management
3. Fire Safety for Ships
4. Elementary First Aid for Seafarers
5. Personal Sea Survival
6. Learning MS Word
7. Learning MS Excel
8. Interactive Training Evaluation System Tool

On-board computer-based training (CBT), as part of a blend of learning events, when integrated into a properly managed competence development system, should be able to deliver measurable results in safety and operational proficiency, and cost savings. When used on board, the learner (crew) is accessing CBT close to the point where acquired skills will be applied thereby facilitating knowledge transfer.

The last few years have seen a massive investment by the tanker owners in new ships, almost $50bn last year alone. But without a parallel investment in human resources, the hardware investment may lose some of its gloss.

INTERTANKO’s Chairman, Nick Fistes, has highlighted crew training as one of the priorities for his chairmanship.

INTERTANKO SAFETY, TECHNICAL AND ENVIRONMENTAL COMMITTEE (ISTEC)

Chairman Dean Tseretopoulos Secretaries: Dragos Rauta, Capt Howard Snaith, Fredrik Larsson and Tim Wilkins Members: Dean Tseretopoulos (Chairman), Thenamaris Ships Management Henrik von Platen (Vice-Chairman), Saudi Maritime Holding Nigel J. Adams, V. Ships (UK) Anil Ahuja, IMC Pan Asia Alliance/Aurora Tankers Stamatis Bourboulis, Euronav Ship Management (Hellas) Andrew Brown, NYK Bulkship (Eur) Thanos Crassaris, Springfield Shipping Co Panama Stavros Daniolos, Minerva Marine Mogens S. Fynbo, A/S Dampskibsselskabet Torm David Goss, NYK Bulkship (Eur) Timothy Gunner, Consultant Oleg Kalinin, Unicom Management Serv (Cyp) Dimitrios Kosmas, European Navigation Evgeniy V. Kostyuk, Novorossiysk Shipping Takis Koutris, Roxana Shipping Per Laböm, Concordia Maritime Douglas Lang, Anglo-Eastern Ship Management (UK) Lars Lundegaard, Dampskibsselskabet “NORDEN” William Millar, Stolt-Nielsen Transportation Group Stephan Polomsky, Claus-Peter Offen Tankschiffreederei Prabhat Sharma, V. Ships Switzerland SA Fabio Tagliavia, d’Amico Societá di Navigazione Bjarne Thygesen, Consultant Konstantinos Vavourakis, Magnus Carriers Derek Walford, Teekay Shipping (Canada) 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.

INTERTANKO’s Safety, Technical and Environmental Committee (ISTEC) met in March 2007 in London and then again in September 2007 in Italy under the chairmanship of Dean Tseretopoulos of Thenamaris. Part of the ISTEC meeting included a separate joint session with the INTERTANKO Environmental Committee and with the ISTEC Bunker Subcommittee. There is a new and permanent item on ISTEC’s agenda where Members can exchange views, compare incidents/solutions etc. without these being recorded. Key items reported include:

Revision of MARPOL Annex VI
ISTEC reviewed a number of technical and operational aspects to reduce ship air emissions. It asked under which standards and regulations solid hazardous waste from scrubbers stored on board ship would be disposed of. It also looked into the make-up of marine residual fuels and their replacement by MDO; the possible increase inMDO supply compared with current refinery capacity to produce heavy distillates for blending; the environmental impact in terms of additional CO2 emissions from various alternative measures suggested for the revision of MARPOL Annex VI; whether bio-fuel could be blended in marine fuels.

IACS Unified Requirement on Hull Survey for New Construction
There was a lack of response from IACS to a joint INTERTANKO/INTERCARGO letter with concrete proposals to improve the IACS UR Z23 – Hull Survey for New Construction. The joint letter suggested inter alia that the UR include provisions for the minimum (or adequate) number of surveyors, for the minimum qualifications required for these surveyors, for ships built on series, for information on any changes from the original specification and drawings.

Pilot Project on Goal Based Standards (GBS)
The ISTEC Chairman represents the Round Table organisations (BIMCO, ICS, INTERCARGO and INTERTANKO) on the IMO Pilot Project on GBS which aims to develop guidelines for the verification process of Class regulations as required by a future GBS regime. ISTEC will use every opportunity to further the view that IACS needs to promote a more transparent and professional justification of the application of net scantling criteria for all structural strength assessments.

Performance Standards for protective coating of sea water ballast tanks
IACS has decided to use the IMO’s new mandatory Performance Standard (PS) for the coating of sea water ballast tanks for all oil tankers and bulk carriers constructed under the Common Structural Rules with contracts from 8 December 2006. Since verification of compliance with the PS is not yet in force under the IMO regime, IACS has developed a separate Unified Interpretation for verification, inviting shipbuilders and ship owners to join a Joint Working Group that would develop an industry Guide for best practice for efficient enforcement of the PS. ISTEC will coordinate/supervise INTERTANKO’s participation.

Industry Best Practice Guide for application of PSPC (coatings)
One outcome from the EMSA Panel on DH tankers was the suggestion that the IMO amends SOLAS and includes mandatory coating for oil tankers’ cargo tanks (under deck and bottom plating).While the IMO is developing the legal instrument for the amendments, it has asked the industry, led by IACS, jointly to submit a draft performance standard. INTERTANKO has cosponsored an industry submission to IMO.

TSCF/INTERTANKO joint Owner’s Maintenance Manual
This manual, which will probably become very important within the scope of the IMO’s GBS process, was to have been ready by end 2007. However, further comment was needed on SH tankers, on frequency of inspections of COT and on coating/corrosion. ISTEC will be contributing to the fine- tuning of this manual which should now be finalised first half 2008.

Damage stability verification for some oil, chemical & gas tankers
There are concerns that ships’ stability booklets do not adequately cover all loaded conditions with regard to statutory damage stability requirements. Stability software can calculate compliance with the damage stability requirements for many different loaded conditions, but many tankers do not have such approved statutory damage stability programmes. ISTEC/INTERTANKO believe that, if the IMO should decide that damage stability programmes should be mandatory on all tankers, then any such amendments should include a reasonable phase-in period for existing tankers.

Pilotage
The Committee’s PilotageWorking Group met in summer 2007 in London. The WG reviewed the IMO’s resolution pertaining to Pilotage, IMO A.960, found it to be of satisfactory standard and recommended to ISTEC that support should be given to A.960 – which ISTEC agreed.

The Joint Danish Pilotage User Group, which is an INTERTANKO initiative, continues to be very successful – 98.3% of tankers transiting Danish waters in 2007 with a draft over 11m took a pilot.

Lifeboat inspection and maintenance
In an attempt to minimise the high number of accidents and fatalities emanating from the handling of lifeboats and lifeboat drills, the IMO’sMarine Safety Committee recommended owners to have annual inspection and service of lifeboats undertaken by personnel certified by the original manufacturer (eif 1.7.2006).

Since then there have been efforts to make the recommendation mandatory. INTERTANKO, whose members have experienced severe difficulties in complying with the circular, has expressed concern at the circular being made mandatory – due to problems encountered associated with the lack of availability of certified inspectors. The IMO has recognised these difficulties and has agreed to keep the circular non-mandatory at this stage.

Life-Boat User Group
In 2007 INTERTANKO established a Joint Lifeboat User Group, between INTERTANKO, The International Lifeboat Manufacturers Association (ILAMA) and INTERCARGO. This is a joint forum where end-users (crews) of lifeboats and other Lifesaving Appliances (LSA) equipment can comment on its effectiveness and efficiency, providing feedback to the manufacturers to improve design and thereby enhance safety, taking a crucial step towards achieving the goal of zero fatalities.

OCIMF Mooring equipment guidelines
The Committee has been actively involved with OCIMF in revising its publication “Mooring and equipment guidelines” (2nd edition). INTERTANKOs comments and advice have been much appreciated by OCIMF and we are confident that the revised edition will be of great assistance.

Ship-to-ship oil transfer (STS) operations
The Committee has been active in the IMO correspondence group tasked to address STS operations. An industry co-sponsored submission to the IMO (BLG 11) raised additional concerns over the document submitted by the correspondence group which concerns, in ISTEC’s view, unnecessarily complicated practical operational requirements for STS operations with unacceptable legal precedents.

Load lines Cape Town
Current Load Line Conventions draw winter and summer zones that allow fully laden vessels to transit the South African coast westbound but not eastbound. ISTEC discussed the issue and decided that INTERTANKO should seek the South African Government’s view. Discussions with the South AfricanMaritime Safety Authority revealed that the issue is under review and cooperation is now well in hand, with a view to bring the matter to the attention of the IMO.

Vetting committee

Chairman Capt Bob Bishop Secretary: Capt Howard Snaith Members: Capt Bob Bishop (Chairman), V. Ships Alan Johnson (Vice Chairman), Tsakos Shipping & Trading Capt Michael Wilson (Vice Chairman), Laurin Maritime Peter Abildgaard, A/S Dampskibsselskabet Torm Capt Ashley Cooper, Scorpio Shipmanagement Dirk De-Reus, Broere Shipping Capt Antonis Filippidis, Roxana Shipping Capt Steven Fox, Admanthos Shipping Agency Capt Steve Hardy, Interorient Marine Services Capt Andy Hill, MOL Tankship Management (Europe) Capt John Hill, Heidenreich Marine Capt Amit Jain, Unix Line Capt Evan Mackay, Columbia Shipmanagement Ken Marshall, Neda Maritime Capt Svein Ommundsen, Frontline Capt Dinesh Pradhan, Teekay Shipping(Singapore) Capt Raja Rajalingam, AET Patrick Russi, Stolt Neilsen Transportation Group David Sharp, Unicom Management Services Capt Domenico Savio Taiano, d’Amico Societá di Navigazione Capt Cosmas Thiraios, Kyklades Maritime Corporation 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

The Vetting Committee remains very popular within INTERTANKO due to its high level of activity and the importance of the issues it addresses. As a consequence it has revised its Terms of Reference to improve turnaround time within the Committee and increase the number of Committee members. The Chairman thanks the Secretary for his hard work and dedication in running this key committee.

The Committee recognises that not only is it important to address the needs and concerns of the wider INTERTANKO membership, but to ensure that it represents all tanker sectors, according to geographic location, company size and trades. It recognises how important it is that vetting and PSC information is distributed to the membership as quickly and effectively as possible. To this end the Vetting Committee ensures the provision of:

• Age criteria tables for terminals, charterers, ports and governments
• Officer Matrix criteria summary tables
• INTERTANKO’s “A Guide to the Vetting Process” (7th edition)
• Vetting Seminars in Athens, Hong Kong, London plus importantly the first “Seafarers Vetting Seminar”, held in Manila aimed specifically at assisting the seafarers themselves with the vetting process – over 1000 seafarers attended the seminar
• INTERTANKO Vetting Bulletins going to over 350 INTERTANKO recipients on an almost weekly basis.
• Regular Weekly NEWS items and reports

Key issues within the vetting committee include:

Tanker Officer Training Standards (TOTS)
The Vetting Committee and the Human Element in Shipping Committee have worked together to priduce TOTS, which is intended to provide tanker industry standards covering officer competence, onboard and shore training, “time in rank” and “time with company” and also to alleviate the problems and difficulties that tanker owners are encountering with the different “officer matrix” requirements of certain charterers. It is envisaged that TOTS will be completed by April 2008.

INTERTANKO has solicited assistance from theWarsashMaritime Academy and the Malaysian Maritime Academy, who are cooperating with INTERTANKO in developing the simulator and verification modules (WMA) and providing engineering expertise to the system for the engineering modules (MMA).

Terminal Vetting Database (Upgrade)
INTERTANKO established its Terminal Vetting Database (TVD) in 2005 when, together with a group of members it completed the test phase of a terminal vetting pilot project and created a database which can accommodate reports on tanker terminals world-wide for the benefit of its members and associate members. INTERTANKO in cooperation with Q88.com has now completed the upgrade of the TVD, shifting this to a new level of operation. The oil companies exercise due diligence in selecting wellmaintained and well-managed vessels for charter: INTERTANKO’s members strive for zero fatalities, zero detentions and zero pollution. In working towards these goals, the TVD encourages terminal operators to achieve high standards of operation and continuous improvement through root cause analysis and corrective actions in response to the constructive comments received. The project continues with the full support and cooperation with BP.

ILO 180 Guidance Book
In conjunction with the Human Element in Shipping Committee, the Vetting Committee will be completing its guidance to members on how to comply with the ILO 180 work and rest hours (and STCW work and rest hours), which is a vital part of the new Maritime Labour Convention 2006 (MLC 2006).

Benchmarking Databases

Lost Indicating Frequency Database
This is now fully available for members to use and provides assistance with TMSA by enabling suitable benchmarking of fatalities, permanent total disabilities, permanent partial disabilities, lost work day cases, restricted work case injuries, medical treatment injuries, and exposure hours.

The development of this model has now enabled us readily to expand with relative ease the functionality of other benchmarking databases for members.

Officer Retention Benchmarking Database
An example of the next benchmarking system that will be built upon this model is the Officer Retention Database. The Committee has established a mathematical formula as a reliable source for defining officer retention, and is currently producing a benchmarking facility on INTERTANKO’s web site.

Detention Statistics
INTERTANKO has concluded an agreement with the Paris Memorandum of Understanding (MoU) on Port State Control with regard to access to its detention data, in return for INTERTANKO furnishing the ParisMoU with the technical information contained within Questionnaire 88, as held on the Q88.com web site. This is will enable INTERTANKO to continue with the annual evaluation of detention statistics.

Worldscale Committee

Chairman Bengt Hermelin Secretary: Kristian R. Fuglesang Members: Bengt Hermelin (Chairman), Saudi Maritime Holding Co Capt Bruno Ausiello, Fertika Trading and Transport Tim Horne, Teekay Shipping (UK) Mark Linham, Eletson Maritime, London Kevin MacKay, AET Hayato Mochizuki, Mitsui OSK Bulk Shipping (Europe) Iain Shaw, St. James’s Chartering 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 onWorldscale issues is to provide members with interpretation and advice on the Worldscale system and to represent INTERTANKO’s members through close contacts with theWorldscale Associations in London and New York, both on fundamental principles and on practical details.

With the publication of the 2008 Schedule, the Worldscale Associations incorporated some of the suggestions made by INTERTANKO’s Worldscale Committee, including:

• A fixed differential to cover the extra cost of consuming low sulphur fuel for voyages where all the ports are entirely within the Baltic and North Sea Sulphur Oxide Emissions Control Areas (SECA). However, voyages that involve ports both inside and outside the SECAs will not be subject to this Fixed Differential in the 2008 Worldscale Schedule, and INTERTANKO’s Worldscale Committee will continue its work to ensure that such costs are also reflected.
• Previous Worldscale Schedules have reflected security (ISPS) costs worldwide when they are known to the Worldscale Associations, except for any U.S. or U.S.-controlled port. This anomaly was removed with effect from the 2008 Worldscale Schedule, and thus there is now an allowance for ISPS costs when they are known to the Worldscale Associations on a fully global basis.

• The Norwegian tax on NOx emissions, which now is an item for charterers’ account.

INTERTANKO and theWorldscale Associations have enjoyed an open relationship over many years. The dialogue is constructive, even if we do not always manage to achieve complete agreement. A very frank exchange of views took place at a lunch hosted by theManagement Committee of the LondonWorldscale Association and INTERTANKO’s Worldscale Committee in May.