China Oil Transportation Safety Forum Shanghai, China - July 20, 2011

China Oil Transportation Safety Forum Shanghai, China - July 20, 2011

Analysis of Tankers Accidents and the

Human Element in Oil Transportation Safety

JOSEPH ANGELOMANAGING DIRECTOR

INTERTANKO

Tanker Statistics

Human Element

INTERTANKO• INTERTANKO is a non-governmental organization established in 1970 to represent the interests of independent tanker operators at the international, regional, national and local levels

• Staff of 24 with offices in London, Oslo, Washington, Singapore and Brussels

• NGO status at the International Maritime Organization (IMO) and the International Oil Spill Compensation Fund.  Consultative status at the United Nations Conference on Trade and Development.

INTERTANKO

MISSION Provide Leadershipto the Tanker Industry in serving the World

with the SAFE, ENVIRONMENTALLY SOUND AND EFFICIENT seaborne

transportation of oil, gasand chemical products

INTERTANKOPRIMARY GOAL

Lead the CONTINUOUS IMPROVEMENTof the Tanker Industry’s Performance

in striving to achievethe Goals of:

• Zero Fatalities• Zero Pollution

• Zero Detentions

MEMBERSHIP

MEMBERSHIP is open to independent tanker owners and operators of oil and chemical tankers (i.e. non-oil companies and non-state controlled tanker owners) who meet the membership criteria.

ASSOCIATE MEMBERSHIP is available to any entity with an interest in the shipping of oil and chemicals.

MEMBERSHIP

• 250+ Members• 3,300+ Tankers

• 285+ Million DWT• Members in 40+ countries

• MORE THAN 75% OF THE INDEPENDENT TANKER FLEET

• 300+ Associate Members

Tanker Statistics

All reported tanker incidents all tankers all sizesand accidental oil pollution from tankers (bars)

Seaborne oil trade has increased some 30% since 2000

Number ’000 ts

79

81

83

85

87

89

91

93

95

97

99

01

03

05

07

09

11

0

210

420

630

840

1050

0

120

240

360

480

600

Miscellaneous

Fire/Expl

Hull & Machinery

Grounded

Coll/Contact

Oil pollution

2011 projection based on 166 days

All reported tanker incidents all tankers all sizesall types of incidents show ≈ the same trend

Number

Grounding decline the most, typical human related incidents collision and grounding 43% of incidents in 2011, (50% in 2010, 47% in 2009, 48% in 2008), hull& machinery incidents mainly engine failure, hardly any hull failures

Tanker incidents by type% of total

Source: INTERTANKO, based on data from LMIU, ITOPF + others2012 a projection based on 166 days

78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 110%

10%

20%

30%

40%

50%

60%

Hull & Machinery Collision/Contact/Grounding

Fire/Explosion Misc/Unknown

Tanker incidents

Rate is number incidentsdivided by number tankersin the segment

Worst incident 2009 may be collision/fire Formosa Brick collision in the Straits of Singapore Aug 2009 9 fatalities and Elli that broke in to two at the entrance Suez Canal.

Groundings 24%

Fire&explosions, 7%

Hull&Machinery 25%

57 incidents34 engine

related

Misc, 17%

Collision/contact 27%

Collision/contact Grounding Fire/Explosion Hull & machinery Misc/unknown

dwt range Number % Rate Below 10,000 107 47% 0.014

10-29,999 43 19% 0.025

30-99,999 60 26% 0.020

100,000+ 17 7% 0.010

Total 227 100% 0.016

Decade built Number % Rate Unknown 6 3%

Built 1970s 32 14% 0.012

Built 1980s 43 19% 0.017

Built 1990s 48 21% 0.015

Built 2000s 98 43% 0.017

Total 227 100% 0.016

Tanker hull & machinery incidentsNumber incidents

Based on data from LMIU, ITOPF + others

0

100

200

300

400

50078 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

EngineHull & Machinery

Split engine and other Hull & Machinery as from 20022010 is a projection based on 110 days

Hull & machinery incidentsEngine – on average 55%, 2011 71%

Number

2002 2003 2004 2005 2006 2007 2008 2009 2010 20110

10

20

30

40

50

60

70

80

90

100

EngineOther hull & machinery

Tanker hull & machinery incidentsNumber of incidents

Based on data from LMIU, ITOPF + others

Year <10 years 10-24 years >25 years TotalAverage

age2002 4 3 15 22 17.52003 3 3 8 14 18.42004 2 2 7 11 18.02005 9 5 20 34 17.62006 12 3 17 32 14.32007 20 3 25 48 13.22008 25 10 24 59 15.62009 8 13 22 53 16.7

2010* 6 3 5 14 17.5Total 89 45 143 287 15.6

2010 figures are for 110 days

Accidental oil pollution into the seaspills per tonne-miles 1970-2011

Source: INTERTANKO/ITOPF

Tonnes spiltper bn tonne miles oil transportation

No major this year oil spill until June 2011 Record low 2008/09

1970

1979

1989

1999

2009

0

12

24

36

48

60

Accidental oil pollution into the sea and tanker trade

Source: INTERTANKO/ITOPF/Fearnleys

1000ts spilt

bn tonne-miles

0.0

0.7

1.4

2.1

2.8

3.5

1970s 1980s 1990s PR00s0

21

42

63

84

105

1000 ts spilt

'0000 bntonne-miles

- 63% -6% -85%

Number spills above 700 tonnes

Source: INTERTANKO/ITOPF

Number

Record low 2008/09

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

0

10

20

30

Number

Average no per decade

1980s 9.3

1970s 25.2

1990s 7.8

2000s 3.3

Incidents attended by ITOPFMost oil spills come from bunkers and other shiptypes than tankers

Number of incidents

Source: International Tankers Owners Pollution Fund (ITOPF)

0

2

4

6

8

10

12

14

16

18

20

2004 2005 2006 2007 2008 2009

TankersNon-tankers

Estimated total average annual U.S. Oil Spillage

Based on data from USCG

bbls

Storage and consumption include: Non-Tank Vessels (Cargo Ships) (2%), Other vessels (5%), Gas stations and Truck stops, Residential, Aircraft, Inland EPA-Regulated facilities (77%), Coastal facilities (Non-Refining) , Inland unknown, Motor vehicles, Others Transport includes: Inland pipelines (80%), Tanker trucks (10%), Railroads (2%), Tank ships (4%), Tank barges (percentages are percentages for the period 1998-2007 for the particular segment. (Percentages in graph is the tank ships percentage of total spillage for he period).

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

1969-1977 1978-1987 1988-1997 1998-2007

Other TransportTank BargesTank ShipsProductionRefiningStorage And Consumption

Tank Ships 30%

Tank Ships 15%

Tank Ships 8%

Tank Ships 2%

Pollution from tankers in the US have been strongly reduced both in absolute terms and as a percentage of total spillage in each period

Tanker accidental pollution 1974 – 2010by cause

Based on data from ITOPF

Tankers spills of 7 - 700 tonnes

Tankers spills of > 700 tonnes

Tankers spills of < 7 tonnes

9,938 spills 958 spills 106 spills

2%3%3%3%

26%

63%

25%

20%

4%3%12%

36%

29%

35%

12%

1%

12%12%

Operational

Groundings

Collisions

Other/unknown

Hull failures

Fire & Explosion

Human Element

INTERTANKO INITIATIVES Tanker Officer Training Standards

(TOTS)

BenchmarkingLost time indicator

Crew/officer retention

DatabasesConfidential accident reporting

(CARP)

Why TOTS?

• Increasing tanker incidents

• Human Element Factors

• Shortage of Experienced Officer

• Officer Training Requirements Continuous Improvement (TMSA)

TOTS OBJECTIVES

• Ensure compliance with today’s rules and regulations.

• Ensure that the team onboard will operate the tanker safe and environmentally aware

• “Ease compliance” with Officer Matrix Requirements.

TOTS ELEMENTSFour Elements of the TOTS1. Training Record Books:

Time in RankTime with Company

2. Computer Based Assessment (CBA)Time in Rank

3. Company Verification (CBA)Time with Company

4. Ship Specific Practical Simulator Verification/Training

Tanker Type SpecificTime in Rank Specific

TOTS - Approved Maritime Training Centers

• Major training centres accredited for TOTS simulator training courses:

MTC HamburgARI in IndiaCOMPASS in ManilaItalian Maritime Academy Philippines (IMAPhil)

• All are accredited to operate TOTS element 4 for crude oil tanker, product tanker and chemical tanker simulator training and simulator verification

TOTS – Human ElementHuman Element aspects addressed in TOTS

via Crew Resource Management (CRM):• Situational awareness• Planning & Decision making• Communications• Teamwork• Emotional climate• Stress• Managing Stress• Commercial Organizational Pressures• Morale• Fatigue

TOTS – Additional Info• Winner of the 2009 SEATRADE Award for

“Investment in People”

• Approved as a Professional Standard byThe Nautical Institute.The Institute of Marine Engineering

Science & Technology

• For E-TOTS and paper version of TOTS, contact publisher Marlin at http://www.marlins.co.uk/tots.htm

Lost Time Indicator Frequency• Lost Time Indicator Frequency (LTIF) provides

members with a useful tool for benchmarking their LTIF and Total Recordable Case Frequency (TRCF) against other INTERTANKO members in a confidential manner

• Based upon OCIMF Marine Injury Reporting Guidelines.

• LTIF and TRCF are calculated and sorted from low to high in bar graphs displaying the results so members not only to know whether they are below or above average, but also to know their position vis-à-vis other members (See example)

Lost Time Indicator Frequency

Crew/officer retention• Crew/Officer Retention benchmarking enables members to

input their own results and then benchmark their rates against the INTERTANKO fleet on a fully confidential basis

• Rates formula has been modeled upon the "Abelson adjusted turnover rate” modified by INTERTANKO to ensure that the output is a measure of the company percentage retention rate as opposed to a turnover rate

% Retention Rate (RR) = 100 - [ ({S – (UT + BT)} / AE) x 100 ]S Total Number of terminations from what ever causeUT Unavoidable TerminationsBT Beneficial TerminationsAE The average number of employees working for the company

(12 month rolling period).

Crew/officer retention

0102030405060708090

100

0102030405060708090

100

Crew Retention Rate (Average 93.6%)

Officer Retention Rate (Average 91.3%)

CARPThe INTERTANKO Confidential Accident Reporting Platform (CARP) database provides a recognised and respected source of accident information for use by INTERTANKO's Secretariat and its Members.

Members input their own incident data in a fully confidential basis whilst allowing INTERTANKO to use the information so that:

• Lessons can be learned and shared• Similar accidents prevented• Standardise accident data and categorisation• Standardize simple accident analysis, root cause, direct

cause and corrective actions

SUMMARY• Tanker incidents have steadily declined over the

years• There was a recent slight up-tick in tanker

incidents, mainly due to engine failures and human element factors, but that has subsided

• Oil pollution from tankers has decreased over the years with a dramatic decline within the past decade

• INTERTANKO has initiated measures to assist its members in improving human element factors and monitoring their progress

Thank

YouJOSEPH ANGELO

MANAGING DIRECTORINTERTANKO

www.intertanko.com