INTERTANKOs Worldscale Committee

Presentation to INTERTANKOs Council 6 May 2010 Tim Horne Chairman Kristian 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 market levels Increases transparency Facilitates competition

Worldscale INTERTANKO Council 6 May 2010

Worldscale problems a major reason why INTERTANKO was established in 1970 INTERTANKOs Worldscale Committee:
One of INTERTANKOs oldest Committees From confrontation to constructive cooperation Integrity

Worldscale INTERTANKO Council 6 May 2010

Aims: To ensure that WS is as useful for comparison purposes as is practicable To keep WS system under review To have a constructive dialogue with WS Associations in London and New York To generate ideas and make recommendations both re. policy and details To assist members in understanding WS

Worldscale INTERTANKO Council 6 May 2010

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

Worldscale INTERTANKO Council 6 May 2010

Some previous issues: More details in Preamble Greater transparency Additional P&I premium for US voyages Voyage distances quoted Extra costs for low sulphur fuel
Emission control areas ECAs Round trip principle Max. 0.1% sulphur in port

Worldscale INTERTANKO Council 6 May 2010

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

Worldscale INTERTANKO Council 6 May 2010

Activities: Meetings when required

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

Operating through correspondence Annual working lunch with London WS Association (next: 20th May) Close direct contacts between Secretariats Provide Members with advice

Worldscale INTERTANKO Council 6 May 2010

Activities continued: Lectures to students Publication

Worldscale INTERTANKO Council 6 May 2010

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. Jamess Chartering Ltd Christian strup, Laurin Maritime

Kristian R. Fuglesang (Secretary)

Worldscale INTERTANKO Council 6 May 2010

Thank you for your attention

Worldscale INTERTANKO Council 6 May 2010

Worldscale INTERTANKO Council 6 May 2010

Worldscale INTERTANKO Council 6 May 2010

Worldscale INTERTANKO Council 6 May 2010

Worldscale INTERTANKO Council 6 May 2010

Worldscale INTERTANKO Council 6 May 2010

Worldscale INTERTANKO Council 6 May 2010

Worldscale INTERTANKO Council 6 May 2010

Worldscale INTERTANKO Council 6 May 2010

Worldscale INTERTANKO Council 6 May 2010

Worldscale INTERTANKO Council 6 May 2010