INTERTANKO's Council focuses on tanker industry sustainability, air emissions and piracy

News Release INTERTANKO London October 7, 2011

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Sustainability of the tanker
industry<o:p></o:p>
<o:p> </o:p>
Debate and discussion by INTERTANKO’s Council Members around the subject
of maintaining a healthy industry in a depressed market concluded with deep
concern being expressed by Council that the current tanker market rates are
consistently below ship owners’ operating costs.<o:p></o:p>
<o:p> </o:p>
“If
these rate levels continue for a long period, then this could lead to a
situation where sustainability of the oil transportation industry is
threatened,”
said INTERTANKO’s Chairman, Capt Graham Westgarth, who was re-elected as
Chairman for another two years. <o:p></o:p>
<o:p> </o:p>
“Our Members operate tankers to the highest standards and will continue
to do so. Operating for a prolonged period in an environment where tanker owners
are not even covering their operating costs is obviously not a situation that
can be maintained.”<o:p></o:p>
<o:p> </o:p>
<o:p> </o:p>
Greenhouse Gases (GHG)<o:p></o:p>
INTERTANKO’s Council has this week updated its policy in
respect of two crucial aspects of reducing GHG emissions from tankers. These
cover the IMO’s Energy Efficiency Design Index (EEDI) and Ship Energy Efficiency
Management Plans (SEEMP) as well as Market Based Measures
(MBM).<o:p></o:p>
EEDI<o:p></o:p>
INTERTANKO welcomes the adoption by IMO of amendments to the MARPOL
Convention mandating energy efficiency measures (EEDI/SEEMP regulations) on
ships<o:p></o:p>
INTERTANKO advocates that:<o:p></o:p>
·        
in the implementation of the EEDI requirements, there should be a
“level playing field” and that the EEDI requirements should apply equally to all
ships on the same effective date.  <o:p></o:p>
<UL type=disc>
<LI
style="MARGIN: 0in 0in 0pt; COLOR: black; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l0 level1 lfo1"
class=MsoNormal>compliance with EEDI should focus on improved hull
design, propulsion efficiency and energy optimisation, rather than
predominantly on reduced speed designs.<o:p></o:p></LI>
<LI
style="MARGIN: 0in 0in 0pt; COLOR: black; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l0 level1 lfo1"
class=MsoNormal>any measures taken to comply with EEDI shall not
jeopardise nor have an adverse effect on the safety of the
vessel. <o:p></o:p></LI></UL>
MBM<o:p></o:p>
INTERTANKO believes that a MBM is not justified at this
time. The industry is already incentivised by high fuel
prices.<o:p></o:p>
If a MBM should be required, then this
should:<o:p></o:p>
<UL type=disc>
<LI
style="MARGIN: 0in 0in 0pt; COLOR: black; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l1 level1 lfo2"
class=MsoNormal>be implemented through an international
regime;<o:p></o:p></LI>
<LI
style="MARGIN: 0in 0in 0pt; COLOR: black; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l1 level1 lfo2"
class=MsoNormal>be simple to enforce and to monitor;
<o:p></o:p></LI>
<LI
style="MARGIN: 0in 0in 0pt; COLOR: black; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l1 level1 lfo2"
class=MsoNormal>provide sufficient transparency to maintain the
current level playing field;<o:p></o:p></LI>
<LI
style="MARGIN: 0in 0in 0pt; COLOR: black; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l1 level1 lfo2"
class=MsoNormal>not result in a disproportionate financial or
operational impact on the industry.<o:p></o:p></LI></UL>
Of the current proposals, the GHG Fund seems to be the
simplest and most transparent from a shipowner point of view.  INTERTANKO is not in favour of a
trading scheme to reduce GHG emissions.<o:p></o:p>
<o:p> </o:p>
Piracy<o:p></o:p>
<o:p> </o:p>
Piracy is still a high priority item for tanker owners, in particular
Somali piracy in the Indian Ocean and Arabian Sea through which passes more than
40% of the world’s oil.<o:p></o:p>
<o:p> </o:p>
INTERTANKO’s Council:<o:p></o:p>
<o:p> </o:p>
·        
reiterated
its strong concern that the piracy situation in the Indian Ocean remains
unacceptable and more must be done by governments to eradicate this
scourge.<o:p></o:p>
<o:p> </o:p>
·        
reaffirmed
its commitment to ensure that all INTERTANKO members comply with the Best
Management Practices (BMP 4).<o:p></o:p>
<o:p> </o:p>
·        
agreed
that INTERTANKO should fully support the Maritime Piracy: a Human Response
Program (MPHRP); and<o:p></o:p>
<o:p> </o:p>
·        
agreed
to continue its wholehearted backing for the growing and evolving SOS
SaveOurSeafarers campaign which is striving to persuade governments to take more
decisive action to eradicate piracy. <o:p></o:p>
<o:p> </o:p>
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