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INTERTANKOs Council Focuses on Tanker Industry Sustainability, Air Emissions and Piracy

Published Dec 18, 2012 2:03 PM by The Maritime Executive

Sustainability of the tanker industry

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.

“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.

“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.”

Greenhouse Gases (GHG)

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).

EEDI

INTERTANKO welcomes the adoption by IMO of amendments to the MARPOL Convention mandating energy efficiency measures (EEDI/SEEMP regulations) on ships
INTERTANKO advocates that:

  • 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. 
  • compliance with EEDI should focus on improved hull design, propulsion efficiency and energy optimisation, rather than predominantly on reduced speed designs.
  • any measures taken to comply with EEDI shall not jeopardise nor have an adverse effect on the safety of the vessel.

MBM

INTERTANKO believes that a MBM is not justified at this time. The industry is already incentivised by high fuel prices.

If a MBM should be required, then this should:

  • be implemented through an international regime;
  • be simple to enforce and to monitor;
  • provide sufficient transparency to maintain the current level playing field;
  • not result in a disproportionate financial or operational impact on the industry.

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.

Piracy

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.

INTERTANKO’s Council:

  • 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.

  • reaffirmed its commitment to ensure that all INTERTANKO members comply with the Best Management Practices (BMP 4).

  • agreed that INTERTANKO should fully support the Maritime Piracy: a Human Response Program (MPHRP); and

  • 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.