The double hull - a two-edged sword?
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1 The double hull - a two-edged sword? World Maritime University 30 August 2006, Malmö Dr. Peter Swift Managing Director, INTERTANKO
2 International Association of Independent Tanker Owners Represents responsible oil and chemical tanker owners worldwide, promoting their interests and providing members with technical, operational, legal, documentary and other support services, information and advice members representing > 80% of the independent oil tanker fleet and > 85% of the chemical carrier fleet, with strict membership criteria associate members in oil and chemical tanker related businesses 15 Committees - 4 Regional Panels Representative Offices in Europe, US and Asia
3 Mission and Vision MISSION Provide leadership to the Tanker Industry in serving the world with the safe, environmentally sound and efficient seaborne transportation of oil, gas and chemical products. VISION FOR THE TANKER INDUSTRY A responsible, sustainable and respected Tanker Industry, committed to continuous improvement and constructively influencing its future.
4 One of the Association s primary goals: Lead the continuous improvement of the Tanker Industry s performance in striving to achieve the goals of: Zero fatalities Zero pollution Zero detentions
5 Seaborne Crude Oil Flows 2005
6 TANKER SHIPPING Safe, Reliable & Cost Effective
7 Double Hulls for Tankers A panacea for pollution prevention or?
8 The Evolution to mandatory Double Hulls Year Event Regulation Requirements/Outcome 1967 Torrey Canyon IOPC Compensation Regime MARPOL 73 TOVALOP/CRISTAL then CLC/FC Prohibition Zones & Reception Facilities 1976 Argo Merchant + 14 others 78 Protocols to MARPOL 73 & SOLAS 74 Regulated operational discharges Existing ships : Clean ballast & COW New ships : Segregated ballast (>20,000dwt), Protectively located, COW & IG 1978 Amoco Cadiz SOLAS Improved Steering Gear controls & Emergency Towing Arrangements
9 The Evolution to mandatory Double Hulls Year Event Regulation Requirements/Outcome 1989 Exxon Valdez USA OPA 90 SH Phase-out to 2010, except DB or DS, or calls at LOOP / Designated Lightering Zones till 2015 MARPOL 92 Amendments New ships (13F) : DH or Mid-Deck Existing ships (13G) : SBT/PL or HBL from 25 years Enhanced inspection programme 1999 Erika MARPOL 2001 Amendments SH Cat 1 Phase-out to 2007 SH Cat 2&3 Phase-out at 26 years up to 2015 Flag States option for newer SH up to 25 years : Condition Assessment Scheme (CAS) from 15 years
10 The Evolution to mandatory Double Hulls Year Event Regulation Requirements/Outcome 2002 Prestige EU Regulation 1726/2003 SH Cat 1 Phase-out up to 2005 SH Cat 2&3 Phase-out up to 2010 No HGOs in SH from 10/2003 CAS from 2005 for all SH over 15 years MARPOL 2003 Amendments 13 G : SH Cat 1 Phase-out up to 2005 SH Cat 2&3 Phase-out up to 2010 CAS for Cat 2&3 from 15 years Flag States: May extend SH Cat 2&3 to 25 years if with db or ds, otherwise to 2015 if earlier Port States: May deny entry to ships granted extensions beyond base case 13H : DH for HGOs (> 5,000 dwt) from 2005, Others from 2008 Flag States : May extend SH Cat 2&3 with db or ds until 25 years Port States : May deny entry to ships granted extension beyond base case
11 Development of oil spills Source: ITOPF. Number of spills above 700 tonnes.
12 Continuing Improvement but not complacent 35 Tanker accidental pollution rate tonnes spilt per bn tonne miles trade Source: ITOPF spills, Fearnleys: Tonne miles
13 Reported tanker incidents ( ) War Hull & Machinery Fire/Explosion Grounding Collision/Contact Other
14 Learning from Tanker incidents: 2005 Total 161 Hull & Machinery dwt range Below 10,000 Total engine, 3 hull 10-29, , , % 4% Misc. Total 161 Fire & Exp. 9% Age Total 33% Built 1970s Built 1980s Built 1990s Built 2000s Grounding 20% Collision* Total 161 *includes contact
15 Tanker hull development % dwt share*: DH SH/DB/DS End End End 04 End 05 End 06 End 07 End 10* * Assumes phase out according to MARPOL 13G and 25 years age limit after Some 25% of non-dh is DB/DS.
16 Tanker hull development by dwt segment Hull Type Small* Handy** Panamax Aframax Suezmax VLCC Total DB/DS 19% 15% 12% 9% 6% 1% 7% SH 30% 16% 16% 13% 15% 31% 22% DH 51% 69% 72% 77% 79% 68% 71% Total 100% 100% 100% 100% 100% 100% 100% Small* - 5,000-24,999 dwt Handy** - 25,000-60,000 dwt
17 Tanker deliveries and deletions m dwt MARPOL Phase-out Deliveries Demolition Net change
18 Risk Management: Double hulls Positive advantages over single hulls in low impact/energy collisions and groundings BUT Potentially more susceptible to problems of poor maintenance and operation
19 Risk Management: Double hulls Technical & Operational Challenges for Double Hulls (Real / perceived?) Construction generally higher global stress levels Corrosion protection cargo and ballast tanks Thermos effect in cargo tanks Maintenance confined spaces Accessibility of structure Ventilation of enclosed spaces Increased risk of fires/explosions Stability intact and damage, in some designs Salvage under some circumstances
20 Under construction
21 Double Hulls have twice or almost three times more areas to be coated and maintained.
22 Cargo Tank Corrosion
23 Deck Head Corrosion
24 Issues of Access
25 Permanent Means of Access
26 INCLINED LADDER IN VLCC SIDE BALLAST TANK
27 INCLINED LADDER IN VLCC SIDE BALLAST TANK CONDITION IF NOT PROPERLY COATED
28 Confined Spaces / Ventilation
29 Risk Management: Double hulls Outstanding issues under review and development: Fixed gas detection systems for ballast spaces Coatings: Application and performance standards Maintenance Best Practice Guides and Protection of Bunker Tanks Protection of Pump Rooms
30 Risk Management: Single hulls Technical and Commercial Challenges: Regulatory Hurdles to trade: Hydrostatic Balance / Protective Location of Segregated Ballast Enhanced Survey Programme / Condition Assessment Scheme (CAS) Flag and Port State approvals after 2010 / Earlier in a few instances Commercial acceptability: Greater selectivity by charterers concerned about reputational risk / more emphasis on inspections, TMSA, etc. Charterer requirements for Condition Assessment Programme rating (CAP) Greater attention from P&I / Insurers Enhanced PSC targeting
31 Some of the Countries accepting SHs after 2010 Flag States - Bahamas - Barbados - Liberia - Marshall Islands - Japan - India - Panama - Singapore Port States - Fujairah -Hong Kong* - Japan - India -Panama - Singapore * until the age of 20 years
32 Seaborne Crude Oil Flows 2005
33 Ship Selection : Baltic / Black Sea : tankers above 50,000 dwt % Baltic Sea % Black Sea 100% 100% 80% SH 80% SH 60% 40% 20% 0% ' DB/DS DD DH: 42% to 99% Source: Fearnleys 60% 40% 20% 0% DB/DS DH DH: 22% to 85% Source: Fearnleys 1Q00 4Q00 3Q01 2Q02 1Q03 4Q03 3Q04 2Q05 1Q00 4Q00 3Q01 2Q02 1Q03 4Q03 3Q04 2Q05
34 Friday August 25, 2006 Oil firms 'hushing up' crisis of corroding pipelines
35 THANK YOU
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