Horne Council World Scale

8/6/2019 Horne Council World Scale

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INTERTANKO’sWorldscale Committee

Presentation to INTERTANKO’sCouncil 6 May 2010

Tim Horne – ChairmanKristian R. Fuglesang - Secretary



Worldscale INTERTANKO Council 6 May 2010

• Purpose of Worldscale:

– Provide shipowner with same net return per day

irrespective of the voyage actually performed

• Very useful tool for voyage chartering

• Shorthand method for comparing marketlevels

• Increases transparency• Facilitates competition




• Worldscale problems – a major reason whyINTERTANKO was established in 1970

• INTERTANKO’s Worldscale Committee:

– One of INTERTANKO’s oldest Committees

– From confrontation to constructive cooperation

– Integrity




Aims:

• To ensure that WS is as useful forcomparison purposes as is practicable

• To keep WS system under review

• To have a constructive dialogue with WSAssociations in London and New York

• To generate ideas and makerecommendations – both re. policy anddetails

• To assist members in understanding WS




Current issues

• Low sulphur fuel

– Emission control areas

• Demurrage – loss of comparability

– Max. 0.1% sulphur content at berth + anchorage• Derivatives trade (Forward Freight

Agreements)• Interpretation and advice to members






Some previous issues (ctd.)

• Greater clarity for Turkish straits passage

• Norwegian NOx tax

• Security charges in ports – ISPS costs

• Bunker adjustment clause

• £, €, ¥ - exchange rates quoted

– enabling currency adjustment clauses

• Environmentally sensitive routeing

– Achieved in 2005, but promoted since 1991




Activities:

• Meetings when required

– at least once a year (next: 20th May)

• Operating through correspondence

• Annual working lunch with London WSAssociation (next: 20th May)

• Close direct contacts between Secretariats• Provide Members with advice




Activities continued:•Lectures to students

•Publication




Committee Members:

• Tim Horne, Teekay Shipping (UK) Ltd (Chairman)

• Mark Linham, Eletson Maritime Limited, London

• Hayato Mochizuki, Mitsui OSK Bulk Shipping (Europe) Ltd

• Justin Murphy, AET

• Iain Shaw, St. James’s Chartering Ltd

• Christian Østrup, Laurin Maritime

• Kristian R. Fuglesang (Secretary)




Thank you for your attention
































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