Piracy Event Impact on SA

Sales Administration Department

March 24, 2009
2

Piracy Event Impact on SA
Immediate Steps - Internal

Shipping Lead on internal co-ordination
Key internal feedback for SA required from:
Shipping
Incident details
Marketing
Mitigating steps we may/will take
Legal
Determine if incident meets the criteria for FM
Decide if and when to declare FM
Business Scheduling
Determine impact on all delivery schedules for different
duration scenario
PR
Support on developing messages and co-ordinate as below
3
Piracy Event Impact on SA


Immediate Steps - External

Inform Buyers
SA unique contact with Buyers on incident (but BS for scheduling
impact)
Agree message with whom? To determine level of detail provided
and to what extent we keep customers informed of developments in
incident and how much of what we tell them is public domain (dont
want to prejudice solution efforts with leaks)
SA inform of FM/incident internally and externally
Previous FM experience demonstrated need for prompt and
frequent customer communication, even when little or no new
information exists.
Need to co-ordinate with PR to ensure consistency of messages
and the timing of public and customer information
If Japanese customers are affected ensure JLO involvement and
clarity of roles and expectations between JLO and Qatar
4
Piracy Event Impact on SA
Continuing Steps
Previous FM incident demonstrated clear requirement for excellent internal co-
ordination. People need to MEET and be informed in a common forum.
Rumour mill and corridor whispers must be minimised with clear information
Understand the impact of any Insurer activities
Identify decision points
Affected Buyers supply requirement
Replacement cargo(s) required?
Replacement cargo(s) available?
Implement Marketing-led decision on necessary steps to meet customer
needs
When event resolved, what to do with the affected cargo?
Original Buyer late
Original Buyer prioritised for extras
New spot sale
Impact on Take or Pay/shortfall
Piracy Event Impact on SA
Long Term considerations/General Comments

Potential large negative impact on reputation
Potential encouragement of other piracy events
Potential large amount of publicity
Ensure QG contractual obligations are known and met
Ensure consistent messages
Ensure clarity of roles and responsibilities
Excellent internal communication ESSENTIAL
Minimize QG liabilities while maintaining excellent customer relations
Reputation risk may remain
5