TANKER RISK MANAGEMENT

A MARINE INDUSTRY PRESPECTIVE

Terrace CAB November 24 2010
1
OCEAN TRANSPORTATION COSTS

The transportation
cost element in the shelf price
of goods varies, but is
typically
1-2% of Canadian retail
prices
2
INTERNATIONAL MARITIME ORGANISATION
www.imo.org
Shipping is regulated
by the 169 states of the
International Maritime
Organization (IM0)
Responsible for the
safety of life at sea and
the protection of marine
environments

3
ADDITIONAL SHIPPING REGULATORY
ENFORCEMENT PROVIDED BY





Classification Societies
Flag
Port
states
State Control (Transport Canada)
4
COMPARATIVE TANKER SIZES


Class
Product
Panamax
Aframax
Suezmax
VLCC
ULCC
Deadweight tons
10,000 - 60,000
60,000 - 80,000
80,000 -120,000
120,000 -200,000
200,000- 320,000
320,000 & above
VLCC DISCHARGING TO AFRAMAX
5
OIL IMPORTS 2009/ DAY


1.
2.
3.
4.
5.
6.
7.
World 65.4 (85) 8. France 2.5
9. Singapore 2.4 United States 13.7
European Union
Japan 5.0
China 4.2
Germany 3.0
Netherlands 2.6
8.6 10.
11.
12.
13.
14.
15.
South Korea,
Italy 2.2
India 2.1
Spain 1.8
2.4
United Kingdom
Canada 1.2
1.7
7 BARRELS = 1 TON

6
IMO REGULATES INTERNATIONAL
TRAFFIC SEPARATION SCHEMES


Dover Straits:
Carries 25% of world
Seaborne trade
600 commercial
vessels in transit or
crossing daily

40m tons of heavy
oil in transit per
annum
fuel
Rotterdam 36,000 ships per year
7
MALACCA STRAITS

Singapore 130,000 ships per year
including 23,000 tankers
Annual traffic 64,000
ships includes:
21,000 container ships
23,000 tankers
8
BOSPHORUS STRAITS
50,000 ships / year
5500 tankers
9
130-140 SHIPS / DAY
10
PANAMA CANAL
2009
586 tanker transits
13.4 million tons
11
VOLUNTARY TANKER
EXCLUSION
ZONE CLARIFICATIO
N
The Voluntary Tanker Exclusion Zone
defines an area off Canada's West Coast
where a disabled tanker would likely drift
ashore prior to the arrival of salvage tugs in
unfavourable weather conditions.
13
MOR
E
OIL MOVIN
G
LESS
ACCIDENTS
NO TANKER SPILL INCIDENTS IN 2009
14
MANAGING
RISK
15
EXXO
N
VALDE
Z
-1989
Prince William Sound Regional Citizens' Advisory Council is an
independent non-profit corporation guided by its mission: citizens
promoting environmentally safe operation of the Alyeska Pipeline marine
terminal in Valdez and the oil tankers that use it.
The council is accountable to those it represents: the people and groups
with the most to lose from another catastrophic oil spill in Prince
William Sound.
16
WHAT
ELSE
HAS CHANGED
?



TRAINING
QUALITY
VETTING
CONSTRUCTION
STANDARDS
ESCORT TUGS
SHARING AND
ADOPTION OF BEST
PRACTICES
CULTURE OF SAFETY
& RESEPCT FOR THE
ENVIRONMENT



double hull construction
17
BRIDG
E
SIMULATIO
N
TRAININ
G
PPU
18


NORTH AMERICAN
EMISSIONS
CONTRO
L
AREA
-
2012
Global
4.5%
-
3.5%
-
0.5%
ECA
1.5%
1.0%
-
0.1%
-
2006
2010
2012
2015
2020
200 nautical
miles low sulfur
emission zone
allowable % sulfur content in marine fuels
19
A pessimist sees the difficulty in
every opportunity
An optimist sees the
in every difficulty
opportunity
Churchill
thank you
stephen@cosbc.ca
Whiffen Head - Newfoundland
20