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Thursday, November 15, 2018

14th Annual Joint Shipping Conference - Hellenic/Norwegian/American Chambers of Commerce

The 14th Annual Joint Shipping Conference Hellenic/Norwegian/
American Chambers of Commerce was held in New York on 5 February 2008.


INTERTANKO's Research & Projects Manager, Erik Ranheim, spoke on the subject of 'Safety - Costs – Performance'. He said that for most shipping segments, transportation costs represent only a small part of the value of the products carried. For the oil market the value of the oil cargo and the volatility of the oil price is currently overshadowing the freight rates. The concern for shipping is therefore not in general the overall cost level but the need for a level playing field.


He showed that the performance of the tanker industry has strongly improved and that projected oil pollution in this decade is going to be almost 80% lower than in the 1990s. Taking increased global oil trade into account, accidental oil pollution per tonne mile of oil transported declined by 33% in the 1990s compared to the 1980s and is heading for a projected 82% in this decade compared to the 1990s. Of course, every pollution incident is unacceptable. Several of the pollution incidents led to changes in the tanker industry, starting with the Torrey Canyon and more recently the Prestige and Hebei Spirit.


He said that the most important regulatory process at the moment was the revision of Annex VI of MARPOL 73 (Regulations for the prevention of air pollution from ships). He explained the different options to reduce air emissions from ships and said that for the future, changing to cleaner fuel was the only sustainable option.


Finally, he looked at the consequences of the phase-out of single hull (SH) tankers and said that in most segments SH tankers have become marginal. Conversion to dry bulk carriers, Floating Production, Storage and Offshore loading facilities (FPSOs) and others had accelerated the removal of SH tankers and has strongly reduced the peak of removals that would occur in 2010 if all SH tankers were to leave the market in that year. No matter the circumstances, at least some will probably continue to trade beyond 2010 taking advantage of the option to trade until the age of 25 years old (but maximum 2015). However, the market for these SH tankers will be very limited after 2010.


Click here to view Ranheim's presentation.


Contact: Erik Ranheim