INTERCARGOInternational Association of Dry Cargo Shipowners

Bulk Carrier BenchmarkingMr Rob Lomas

13 October 2006

INTERCARGO

Dry Bulk AssociationMember of the Round TableAssociate Member - IntermangerRepresents about 800 bulkers and increased membership (130 full and associate)Common challenges quality, safety, responses to regulation

INTERCARGOBenchmarking ethos

Should we publish ?

How do stakeholders perceive us?Stronger demands for transparencyAdequacy of existing information sources data presentation issues; margin of errorPortraying our members as higher qualityTargeting becoming more important

INTERCARGOPort State Control analysis of one sectorExtensive statistical analysis c 6000 bulkersAnalysis of flag, class, ownerDeficiencies per inspection correlates with ad-hoc quality definitions

INTERCARGOPSC BENCHMARKING DOCUMENT

A : Statistical information (10,000 dwt +)B : PSC Data (Paris / Tokyo / US CG)C : Benchmarking DataD : Further information / recommendations

Intercargo Executive Committee meeting on 9 October 2006 concerns with corruption and uniformity of inspection

INTERCARGOTHE FINDINGS

Statistics

Fewer dry bulk vessels than thought on at least one inspection in Paris/Tokyo MoU / US CG areas in 3 years basis6000 vessels; 1200 companies; growth in Intermanager controlled bulkers

INTERCARGOFINDINGS

PSC Detentions - main

Fire fighting : 1st : 598ISM / Certificates : 2nd : 539Lifeboats : 3rd : 42510 other categories note, serious structural - 149

Many detentions immediately pre-post vessel saleFINDINGS

Owners casualties

Context declining casualties :-

2005 6 losses / 1 structural / 0.974 per 100 ships

2004 5 / 1 / 1.154

2003 4 / 0 / 1.389

. 1996 14 losses

INTERCARGOOwners Benchmarking MatrixDeficiencies per inspection (median : 2.44; average owner scored 3.57; Intercargo entered vessel 2.11) N90-100 (worst) 7.2 to 41 80-895.25-7.69B-70-794.03-5.2360-693.14-450-592.45-3.12B+40-491.94-2.4430-391.51-1.9320-291.13-1.510-190.62-1.121-9 (best)0-0.61

Large Intermanager-style third party shipmanagers perform well on quality

INTERCARGOBenchmarking Class

2.93 deficiencies per inspection with IACS entered ships; 8.71 for non IACSIntercargo only approves IACS

Benchmarking Flag

Can only recognise historical performance (2003-2005)Credit for improvements especially Cyprus Flags outperforming market share included Panama (+2.22%); Hong Kong (4.82%); Liberia (0.77%); Bahamas (2.25%)

INTERCARGOBenchmarking age

Vessels in 22-30 year old range comprise 29% of the fleet but had 53% of the detentionsThere are good, older ships but PSC inspectors target older vessels.

INTERCARGOBenchmarking Human Element

It is not only the BAD owners which have collisions and groundings but also the GOOD Collisions 2005 : A and B+ managers had 61% of the collisions but comprised 39% of total.Groundings 2005 : ditto 54% / 39 %Inference that training requires further attention

INTERCARGOCONCLUSION FURTHER ACTION

ISM failings to be correctedOwners should divert attention to detail certification, minor fire / lifeboat issuesStakeholder involvement essentialHuman Element the challenge for the good ownersTarget corruption

INTERCARGOINTERNATIONAL ASSOCIATION OF DRY CARGO SHIPOWNERS

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