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

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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 ?

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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

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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)

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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)

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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

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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

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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

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- Environmental summary
CO2, SoX, NoX & PM

Ballast Water / Anti Fouling

Cargo residues

End of life recycling,

Pollution in general

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

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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

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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

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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

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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