INTERCARGO

International Association of Dry Cargo Shipowners

Bulk Carrier Issues

Mr Rob Lomas January 2008

INTERCARGO
Topics for analysis
Dry Bulk sector statistics Port State Control performance Conclusion are owners and charterers ignoring safety and quality?

Dry Bulk Association About 800 dry bulk vessels 135 members Asia and Europe Member : Round Table of Maritime Associations - BIMCO, International Chamber of Shipping; Intercargo and Intertanko Common challenges quality, safety, responses to regulation

INTERCARGO
Bulk Carriers setting the context. Larger fleet 1/1/2007 - 6,084 2012 7,700 ?? 1/1/2008 6,343

Casualties 2006 7 ships : 37 lives 2007 7 ships : 39 lives 2008 - concerns about China charterer quality Negative Performance Indicators Collisions : + 70 % 2006 ? Groundings : +17% on 2006 ? Engine Problems : - 14% on 2006 ?

INTERCARGO
UNCTAD : Review of Maritime Transport 2007 In 2006, world seaborne trade (goods loaded) increased by 4.3 per cent to reach 7.4 billion tons At the beginning of 2007, the world fleet broke the 1 billion deadweight tons (dwt) barrier Dry Bulk fleet grew 8% China, India and Asia clearly leading the trades

INTERCARGO
PORT STATE CONTROL One of the mechanisms to regulate global shipping Transparent (through www.equasis.org), effective and (usually) honest and professional Can be used to measure quality (owners, flag and class) : Detentions and Deficiencies per Inspection (DPI)

INTERCARGO
1 January 2008 : Bulk Carrier results Measurement in the Paris MoU, Tokyo MoU and US Coast Guard Areas of Bulk Carrier performance (10,000+ dwt) 2007 470 detentions 2007 Intercargo entered vessels - 23 (2006:26, 2005:34; 2004:43; 2003:30)

INTERCARGO
Detentions main factors

Fire fighting 1st (598) ISM/Certificates 2nd (539) Lifeboats 3rd (425) 10 other categories serious structural (149) Increasing concern in 2007 and 2008 that vessel maintenance standards are becoming challenging

INTERCARGO
Benchmarking Owner quality and performance Not only BAD owners which have collisions and groundings but also the GOOD Collisions 2005 : A and B+ owner had 61% of the collisions but comprised 39% of total. Groundings 2005 : ditto 54% / 39 % Inference : training; ISM; andHuman Element

INTERCARGO
Environmental issues

Pressure to do something voters & pressure groups; and shipowners : INTERMEPA, & self interest; Regional verses International owners preference towards International; Charterers transparency leading to new pressures

INTERCARGO - Environmental summary

CO2, SoX, NoX & PM

Ballast Water / Anti Fouling

Cargo residues

End of life recycling, Pollution in general

INTERCARGO
INTERCARGO 2008 Work Programme (General) Focused on key issues, which have a bulk perspective

INTERCARGO
Work programme (1 : Specific)

Air Emissions - wants a pragmatic & technically feasible solution to the bunker/air emissions debate taking into account safety. Common Structural Rules & Goal Based Standards Technical solutions and harmonised international standards. Casualties/Transparency of reporting Wants a rethink in the way that Flag reports class. Criminalisation Intercargo supports the Coalition opposing the European Union's criminalisation of seafarers for accidental pollution. Definition of Bulk Carrier wants safety consideration for Open Hatch General Cargo ships

INTERCARGO
Work programme (2) Environmental legislation holistic and net environmental gain must be the goal. Lifeboats working with Intertanko to improve safe systems of evacuation. Loading Rates work with Classification Societies on very high loading rates on large bulk carriers (Brazil China/Japan) Pooling September 2007 European Commission Guidelines on Competition Law changes

INTERCARGO
Work Programme (3) Port State Control: Performance and Corruption : not a single Bulk Carrier industry in terms of performance Reception facilities challenging anomalies of Marpol V and the availability of reception facilities for receiving dry cargo residues. Stowaways Intercargo/Intertanko, with the support of Round Table partners, lobbied IMO for a Stowaway Focal Point to assist P&I and Flag Training and Manpower committed to a safe and effective work-force

INTERCARGO
Summary : Main Dry Bulk external issues Regulation quantity & effectiveness : especially environmental Safety Bulk Carrier design and Human Element Supply chain responsibility for quality & international development Training & employment Commercial supply & demand; Third party ship management; consolidation

INTERCARGO

INTERNATIONAL ASSOCIATION OF DRY CARGO SHIPOWNERS

Thank you for your attention

www.intercargo.org info@intercargo.org www.shippingfacts.org