LATIN AMERICAN PANEL
November 5, 2014
INTERTANKO
OVERVIEW
JOSEPH ANGELO
DEPUTY MANAGING DIRECTOR
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MEMBERSHIP
BUDGET
SECRETARIAT
CURRENT MAJOR ISSUES
FDIP
ANNUAL TANKER EVENT
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MEMBERSHIP
210+ Members
3,000+ Tankers
270+ Million DWT
Members in 40+ countries
300+ Associate Members
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INTERTANKO membership end year
Number members/m dwt
Number ships
290
3,400
No. members
m dwt
No. ships
232
2,720
174
2,040
116
1,360
58
680
Mid14
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
0
1997
0
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INTERTANKO membership by type tanker
Others
Others
Gas
Gas
Chemical
Chemical
10%
Chem/Oil
13%
Product
71%
Crude
0
50
100
11%
Chem/Oil
27%
Product
20%
Crude
38%
0
150
Million dwt
200
400
600
800
1000
1200
Number tankers
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Members by size of fleet
No tankers
Number members
67
1,000
70
No tankers
56
No members
800
56
40
600
42
400
28
18
200
20
13
14
0
0
50 and above
25-49
15-24
10-14
5-9
Below 5
Number of tankers 3,018, number of members 214
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Members by size of fee
Total fee
Number members
58
2,100,000
Fee
57
60
Number members
1,680,000
48
35
1,260,000
34
36
29
% is fee per segment of total
840,000
24
420,000
12
38%
26%
22%
10%
4%
2,107,575
1,476,133
1,246,552
568,299
203,490
Max fee
$30,000-Max
$15,000-29,999
Min-$14,999
Min fee
0
0
Max fee is $72,675, Min fee is $5,985
$ fee range
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INTERTANKO membership fleet
by country of registration
m dwt
Others
14%
19%
Others
Russia
Number
Russia
Italy
Italy
Luxembourg
Luxembourg
Switzerland
3%
Switzerland
Malaysia
4%
Malaysia
Germany
Germany
Singapore
Singapore
Norway
Norway
Bahamas
5%
Bahamas
Bermuda
3%
Bermuda
China - HK
China - HK
9%
Cyprus
11%
Cyprus
Japan
Japan
Greece
24%
0
Greece
13
26
39
52 m dwt 65
19%
0
0
0
0
0 Number 0
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INTERTANKO membership by Flag
CT
CT
TU
TU
IN
IN
BD
BD
SP
SP
BE
BE
BR
BR
JA
JA
FR
FR
DA
DA
IoM
IoM
MY
MY
PRC
PRC
CY
IT
IT
NO
NO
MA
4%
MA
HK
HK
SG
SG
PA
PA
MI
MI
GR
GR
LI
10
7%
LI
15% share
0
7%
BS
9%
BS
4%
CY
2%
20
30
40
million dwt
14%
0
50
100 150 200 250 300 350 400 450
Number tankers
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INTERTANKO membership by Class
Dual/others
Dual/others
KR
KR
RINA
RINA
CCS
CCS
GL
4%
GL
BV
5%
BV
14%
NKK
LR
LR
ABS
ABS
DNV
25% share
0
200
13%
NKK
400
25% share
DNV
600
800
Number
0
10
20
30
40
50
60
70
Million dwt
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Average age membership INTERTANKO membership fleet
Years
16
15
14
13
12
11
Members' fleet
World fleet
1998
2001
10
9
8
7
Mid14
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2000
1999
1997
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BUDGET
2012
(Actual)
2013
(Actual)
2014
(Budget)
Total Operating
Income (US$)
6,886,363
6,768,203
6,800,477
Total Operating
Expenses (US$)
6,021,965
6,206,943
6,780,740
Operating Result
864,398
561,260
19,738
Non-operating
Income/expenses
321,319
136,161
-18,000
1,185,717
697,421
1,738
Result for Year
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INTERTANKO income and staff
Staff no.
Income $ m
30
9
Income
24
7
Staff
2012
2010
2008
2006
2004
2002
2000
1998
1996
1994
1992
1990
1988
1986
1984
0
1982
0
1980
6
1978
2
1976
12
1974
4
1972
18
1970
5
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SECRETARIAT
20 STAFF MEMBERS IN 4 OFFICES
Oslo (8), London (10), Singapore (1), USA (1)
STAFF INCLUDES
• Managing Director (London)
• Deputy Managing Director &
Director of Regulatory Affair (USA)
• Technical Director (Oslo)
• Marine Director (London)
• General Counsel (London)
• Senior Environmental Manager (Singapore)
Currently seeking applicant for Marine staff
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CURRENT MAJOR ISSUES
Sustainability
Value Proposition
Vetting
Ballast water management
Air emissions
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SUSTAINABILITY
Why a Sustainability Project??
• Charter/freight rates not covering basic vessel
operating costs
• Earnings not supporting forward investment
• Charter party terms which are not balanced
and at times ignored
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SUSTAINABILITY
Desired Outcome: Achieve balanced and fair
trading conditions for the tanker industry
regardless of the prevailing freight market
Focus
• Code of Conduct for tanker chartering
• Use of SIRE as intended to reduce cost of
Vetting inspections
• Improve late payment of freight and demurrage
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SUSTAINABILITY
CODE OF CONDUCT for Tanker Chartering
Conduct at all times in accordance with the concept of ‘good faith’
Uphold the principles of fair and legal dealing with all stakeholders
Comply with high standards of integrity and respect for others
Conduct business as responsible corporate members of society
Understand the needs of all stakeholders
Listen and respond to all business partners in a prompt,
professional and respectful manner
7. Behave in ways that earn the trust of others
8. Uphold these principles regardless of how they are treated by
others
1.
2.
3.
4.
5.
6.
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SUSTAINABILITY
Next steps
• Direct action with senior oil company
executives responsible for chartering
strategy
• Invitation to consider and engage with CoC
• Continue R&D to identify/quantify facts and
figures illustrating the big issues and to help
redress market imbalances
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SUSTAINABILITY
Payment Performance Database
• Focus: late payment of freight and
demurrage
• Need for database of specific payment
information from members
• Why? To be able to prove trends which back
up our arguments on late payments
• Pilot Study Proof of Concept > 5,900 data
points from 2010-2014
• Database satisfies anti-trust criteria
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SUSTAINABILITY
Payment Performance Database
Contractual obligations?
Freight
Charter party – payable on completion of discharge
Pilot study – Typical 5-10 days
Demurrage
Charter party – payable on receipt of owner’s invoice
Pilot study – Typical > 90 days
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SUSTAINABILITY
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SUSTAINABILITY
What you get …
• Top 20 best payment performers
• Average delays in freight payments
• Average delays in submitting demurrage claims
• Average delays in negotiating demurrage claims
• Average delays in payment of agreed demurrage
claims
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SUSTAINABILITY
Plus –
• Comparison between owner’s own
fixtures/charterers
• Comparison between owner’s own data and
other Members’
• Comparison between charterers (subject
compliance with anti-trust/competition rules)
• Comparison between different tanker types
• USD amount overdue for how long (i.e. to
calculate cost of extra working cap)
• Comparison of payment performance over time
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SUSTAINABILITY
What you give …
• Charterer name
• Vessel name
• Vessel dwt
• Voyage start date
• Voyage end date
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SUSTAINABILITY
Plus –
•
•
•
•
•
•
•
•
Invoice amount for freight
Invoice amount for demurrage
Invoice dispatch date for demurrage
Dispute notified date (if applicable)
Claim agreed date (if applicable)
Invoice payment date for freight
Invoice payment date for demurrage
Amount actually paid for demurrage
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SUSTAINABILITY
Payment Performance Database
Data Security
•
•
•
•
•
System designed by data encryption experts
Your data is private to you and encrypted
Secure login and data storage
Secure connection through https protocol
System servers located in purpose built
hosting centre with best-of-breed security
• Your private data is only available to you,
and to INTERTANKO administrators
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SUSTAINABILITY
Payment Performance Database
• Value as resource to back up our findings on
charterer payment performance
• Value as resource for members to use
benchmark overall and specific situation
• Value increases as contributions of data increase
• Database success depends on Members
contributing their payments data and trusting us
to handle this sensitive information
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VALUE PROPOSITION
• Clearly and succinctly articulate INTERTANKO’s
value to our members
• Develop marketing materials targeted at different
levels to cater to:
1. Existing Members;
2. New/potential Members;
3. External stakeholders
• For external stakeholders consideration will be
given to whether they might view being an
INTERTANKO Member as a positive sign that
attracts advantageous treatment.
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VALUE PROPOSITION
MEMBER ENGAGEMENT – Spring 2014
1. What are the 3 most important things INTERTANKO
offers ?
to You as an individual // to your company
2. How would you describe INTERTANKO in one
sentence ?
3. How would you describe the unique value of
INTERTANKO - what is the Association’s strength?
4. What do you think INTERTANKO can improve on ?
What do ‘competitors’ do better than INTERTANKO ?
What does INTERTANKO do better than them?
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VALUE PROPOSITION
SUMMER 2014
Qualitative exploration amongst a small sample of
Council members
FALL 2014
Online quantitative survey of members opinion providing
statistical rigour and benchmark measure for ongoing
evaluation
NOVEMBER 2014
Value Proposition presented to Council meeting
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TANKER VETTING
SHIP INSPECTION REPORT PROGRAM (SIRE)
•
Established by OCIMF in 1994 to:
1. Provide standardized tanker inspection report; and
2. Allow all OCIMF members to use any report in the
database with confidence
•
One of the primary objectives was to reduce the
number of tanker inspections
•
SIRE brochure stated “ideal interval between
inspections is therefore around 4–6 months”
•
Recent information from INTERTANKO members is that
OCIMF members are requiring inspections much more
frequently
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TANKER VETTING
KEY ELEMENTS of OCIMF Chairman letter
•
“I emphasise to you the importance of continuing to
utilise the existing inspection reports contained in the
SIRE database to the greatest possible extent.”
•
“I would ask all OCIMF members to ... take every
opportunity to eliminate unnecessary inspections.”
•
“I also ... remind you ... only to inspect the vessels
needed to meet anticipated chartering requirements.
•
“The SIRE system is a programme OCIMF members
can be rightly proud of ... and I request your help in
doing so by taking every opportunity to eliminate
duplication in your inspection regimes.”
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TANKER VETTING
OCIMF Sire Working Group/
INTERTANKO Vetting Committee
• Initial focus was “the decline in the use of
the SIRE system by OCIMF members”
• Issues discussed included:
- Increased sharing of ship inspection statistical data
- Improved feedback systems on ship inspections and
inspectors
- Development of best practice guidance on important
areas of marine risk assurance
- Development of matters related to crew competency
- Accident database
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TANKER VETTING
TWO RECENT ISSUES OF CONCERN
1. SHELL
Ship visits by company CEOs (quarterly) and senior
management personnel (monthly)
2.
OIL TERMINALS “CONDITION OF USE”
Oil terminals require the Master to sign/accept a document
as a pre-condition of being allowed to load/discharge at the
relevant terminal which contain onerous terms that usually
exonerate the terminal from any liability for any damage
caused to the vessel even if the damage is caused by the
Terminal.
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FDIP
FREIGHT & DEMURRAGE INFORMATION POOL
• Service offered to members by INTERTANKO who will act
on members’ behalf and in their interest to recover
undisputed debt and to encourage prompt and responsible
dialogue for disputed claims.
• Members pass INTERTANKO the details of their claims
and contact details for the charterers. We then contact the
charterers or other debtors
• Fee for the FDIP is USD 1440 per year, the cost of just a
few hours legal advice from a London lawyer. The fee
covers a members’ entire fleet entered with INTERTANKO
and is for an unlimited number of claims.
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FDIP
How our FDIP can help you:
1. Maintains database of charterers that have been reported
to FDIP – members able to request information on specific
charterers to see experience encountered with them;
2. Publishes FDIP Statement that lists charterers that have
persistently failed to settle claims; publishes a FDIP Circular
that contains articles on recent cases on laytime/demurrage,
recent clauses and information on particular charterers;
3. Members are able to report claims to the FDIP following
which the FDIP will request charterers to initiate a dialogue
with owners or pay an agreed claim as appropriate;
4. Where parties dispute the effect of the provisions of a
charter party, they may seek independent advice from the
INTERTANKO’s legal section.
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2015 ANNUAL TANKER EVENT
Venue:
Athens, Greece
Dates:
May 18 - 22, 2015
Events:
Executive Committee Meeting
Council Dinner and Meeting
Annual General Meeting
Gala Dinner
Tanker Seminar
[Workshop]
Details to follow soon!!
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THANK
YOU
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