Accelerated Phasing-Out Scheme for Single Hull Oil Tankers

28 January 2003

Accelerated phasing-out scheme for single hull oil tankers

(amendment of Regulation (EC) No 417/2002)

STATISTICAL DATA ON AVAILABLE TANKER CAPACITY

(World tanker fleet as of November 2002)

- - o - -

1. INTRODUCTION

The purpose of this working document is to illustrate the effects of the new requirements for double hull tankers as proposed by the Commission on 20 December 2002 in response to the Prestige accident in terms of the tonnage and number of vessels affected. The document is intended to facilitate the debate in the European Parliament and the Council of the European Union on the proposal. The data and figures included are of relevance to examine the question of the availability of sufficient tanker capacity to ensure the continuity of sea-borne oil supplies.
The main source used is the Lloyd's Register of Shipping / Fairplay (LR Fairplay) database on world-wide single-hull oil tanker fleet above 5,000 dwt. as per November 2002. The tanker order book for 2003-05 has been taken from the December 2002 Clarkson Research's Shipyard Monitor.

The graphics and tables elaborated from the LR Fairplay database have been checked[1] by the "International Association of Independent Tanker Owners" (INTERTANKO). The document includes also the relevant parts of a study produced by the "Oil Companies International Marine Forum" (OCIMF) in January 2003.

The following considerations are relevant in respect of the types of vessels affected by the proposed measures:

3.1 The world-wide single-hull oil tanker fleet (i.e. data used) covers the following types of vessels:

Product tankers
Chemical/Oil tankers
Crude oil tankers
Bitumen tankers
Asphalt tankers and
Tankers general

It does not include:

Chemical or parcel tankers

Combination ships/oil or Oil/bulk carriers (totalling 122 ships or 12.1 million dwt.)
Wine, water, LNG, LPG (gas), US MARAD, permanent storage, replenishment, government (army), ethylene and other specialised vessels.

3.2 Single Hull / Double Hull definitions:

For the purposes of the attached information, single hull tankers are assumed to be all those tankers that are not double hull. Any tanker, which is not double-hulled as defined by the MARPOL 13G regulation (and EC Regulation 417/2002), is counted as single hull[2].

Double hull tankers also include the double hull tankers built before the MARPOL 13 F regulation was implemented and may include double hull ships that are not built according to MARPOL specifications.

Information on Category 2 tankers (Segregated ballast tanks in protective locations – SBT/PL), is not completely clear in the database as a number of Category 1 tankers have been converted to SBT and sometimes these conversions have not been according to MARPOL requirements. For addressing that problem, the information of the database has been adjusted with information obtained from INTERTANKO (i.e. information obtained at an inter-industry project group that was set up in 2000 in connection with the development of the regulation 417/2002). However, this information dates from mid-2000 and some (but few) tankers may have been converted to SBT/PL after that date

3.3 New deliveries:

All new deliveries for ships above 5,000 dwt. (shipyards order book) are assumed to be double hulls.

The following assumptions have been made in respect of the comments about the question of the availability of sufficient tanker capacity to ensure the continuity of sea-borne oil supplies:

The proposed EU measures (amendment of Regulation 417/2002) would come into force not later than July 2003;
The proposed measures would be first introduced at EU level only; a parallel amendment of MARPOL 13G by IMO would not come into force before end 2005. The eventual effects of this possibility (IMO parallel measures) would have to be reassessed in the light of the evolution of new shipbuilding orders in the coming two years.
The regime applying in the USA (OPA 90) would remain unchanged.

In the context of Regulation 417/2002, the term "phasing-out" applied to single hull tankers means that, after the corresponding deadline (for each Marpol category), the affected tankers would not be allowed to call into EU ports. In practice it means that the commercial life of those tankers for serving EU trades would be shortened. Some of the single hulled tankers phased out for EU trades may find alternative employment in other trades. In this context it is useful to note that the EU oil seaborne was estimated in the Erika-I communication[3] at roughly 27% of the world tanker trade.
The structure of this document is as follows:

Part I: Profile of the world oil tanker fleet, by hull type and by flag (EU vs. non-EU), pages 5 to 15

Part II:Impact of the accelerated phasing out measures by MARPOL categories of tankers (comparison between the existing and the proposed phasing out schemes by number of vessels and by tonnage), pages 16 to 32.

Part III:Figures in respect of the small tanker fleet (oil tankers below 5.000 dwt.), pages 33 to 38.

Part IV:Comparison of tanker fleet per Member State, Norway, Cyprus and Malta (EEA and candidate countries), pages 38 to 41.

PART I

Profile of the world oil tanker fleet above 5,000 dwt.

Graph n. 1: World Oil Tanker fleet by Hull type (tonnage)

Table n. 1: World Oil Tanker fleet by Hull type (tonnage)

Built year / Double Hull / Not DH / Total / For delivery
-1970 / 1,287,753 / 1,287,753
1971 / 533,719 / 840,419
1972 / 840,419 / 1,350,073
1973 / 1,350,073 / 4,847,081
1974 / 69,497 / 4,777,584 / 6,536,930
1975 / 6,536,930 / 11,324,470
1976 / 27,421 / 11,297,049 / 5,536,147
1977 / 5,536,147 / 4,105,607
1978 / 4,105,607 / 5,665,363
1979 / 5,665,363 / 6,015,072
1980 / 11,520 / 6,003,552 / 8,018,135
1981 / 123,789 / 7,894,346 / 5,131,632
1982 / 141,535 / 4,990,097 / 4,596,676
1983 / 78,052 / 4,518,624 / 3,413,011
1984 / 164,710 / 3,248,301 / 4,216,384
1985 / 446,121 / 3,770,263 / 6,250,102
1986 / 774,714 / 5,475,388 / 5,522,750
1987 / 986,871 / 4,535,879 / 7,071,141
1988 / 1,064,243 / 6,006,898 / 9,906,457
1989 / 1,128,212 / 8,778,245 / 7,973,822
1990 / 989,097 / 6,984,725 / 11,897,009
1991 / 3,072,726 / 8,824,283 / 16,117,510
1992 / 6,083,283 / 10,034,227 / 17,375,737
1993 / 8,883,735 / 8,492,002 / 10,302,446
1994 / 4,944,955 / 5,357,491 / 11,495,550
1995 / 7,643,519 / 3,852,031 / 11,783,010
1996 / 11,741,920 / 41,090 / 7,536,732
1997 / 7,488,064 / 48,668 / 13,167,719
1998 / 13,149,492 / 18,227 / 19,415,445
1999 / 19,408,836 / 6,609 / 20,825,634
2000 / 20,775,796 / 49,838 / 14,308,149
2001 / 14,286,461 / 0 / 26,739,476
2002 / 26,739,476
2003 / 29,737,709
2004 / 18,659,372
2005 / 3,232,770
Total / 150,224,045 / 140,861,428 / 290,573,442 / 51,629,851

Graph n. 2: World Oil Tanker fleet by Hull type (number of vessels)

Table n. 2: World Oil Tanker fleet by Hull type (number of vessels)

Built year / Double Hull / Not DH / Grand Total / For delivery
-1970 / 106 / 106
1971 / 44 / 44
1972 / 43 / 43
1973 / 59 / 59
1974 / 3 / 88 / 91
1975 / 107 / 107
1976 / 3 / 118 / 121
1977 / 75 / 75
1978 / 69 / 69
1979 / 86 / 86
1980 / 1 / 122 / 123
1981 / 3 / 150 / 153
1982 / 6 / 120 / 126
1983 / 2 / 90 / 92
1984 / 3 / 73 / 76
1985 / 11 / 82 / 93
1986 / 15 / 82 / 97
1987 / 20 / 70 / 90
1988 / 17 / 79 / 96
1989 / 20 / 81 / 101
1990 / 16 / 74 / 90
1991 / 40 / 84 / 124
1992 / 74 / 75 / 149
1993 / 83 / 67 / 150
1994 / 62 / 48 / 110
1995 / 87 / 31 / 118
1996 / 130 / 6 / 136
1997 / 96 / 6 / 102
1998 / 167 / 3 / 170
1999 / 214 / 1 / 215
2000 / 167 / 6 / 173
2001 / 139 / 3 / 142
2002 / 190 / 0 / 190
2003 / 288
2004 / 209
2005 / 41
Grand Total / 1569 / 2148 / 3717

Comments (profile of the world oil tanker fleet above 5,000 dwt, Tables 1 and 2)

MARPOL Regulation 13F applies to tankers of 600 tonnes dead weight and above ordered from 1993 and requires vessels of 5,000 tonnes dead-weight and above to be double hulled as of July 1996. There is no statutory requirement for ships below 5,000 tonnes dead weight to have double hulls. This explains why some single hull capacity was still built after 1996 (small vessels).
Overall, double hull capacity represents 52 % of the world tanker fleet tonnage and 42 % of the number of tankers in service as of November 2002 (tankers of 5,000 dwt. and above)

Tonnage (dwt x 1,000) / Number of tankers
Single hull / 140,861 / 2,148
Double hull / 150,224 / 1,569
Total World fleet / 291,085 / 3,717
Tonnage (dwt x 1,000) / Number of tankers
Single hull / 48,3 % / 57,8 %
Double hull / 51,7 % / 42,2 %
Total World fleet / 100 % / 100 %

The total dead-weight of double hull tankers currently on order and due for delivery within the next two years appears to be sufficient to replace the total dead-weight of single hull ships due to be phased out under MARPOL Regulation 13G up to 2007 (see pages 6 and 8). Shipbuilding orders registered at the end of 2002 will hit 51 million new tonnes dead-weight to be delivered within the next 32 months (around 48 million tonnes dead-weight of tankers will be delivered in 2003 and 2004—both higher outputs than at any stage since the 70s). The industry delivered around 60 million tonnes dead-weight over the period 2000-2002
For the purposes of examining any possible constrains in the capacity of the tanker fleet due to the proposed regulation, it is relevant to mention that over the past ten years (1992-2002), the average annual growth of the tanker fleet transport capacity has exceeded the average growth of oil sea-borne trade. During the major part of 2002, the oil tankers market was characterised by significant surplus capacity and relatively low freight rates.

Both regulation 417/2002 and its proposed amendment are measures intended to cover a transitional period of time. The renewal of the world fleet of oil tankers is a market driven development. The data available (see Graphs 1 & 2/ Tables 1 & 2) shows that the replacement of single hull tankers goes at a good pace since 1996. The reduction of single hull tanker tonnage is linked, inter alia: to the demolishing of ageing VLCC type tankers built in the 1980s and before, which are expensive to maintain and for which there is a reduction in demand due to environmental concerns, the high cost of continuation of class, significant insurance premiums and the limited number of regions admitting tankers of that design.

Graph n. 3: World Oil Tanker fleet by flag (tonnage)

EU candidate: include Malta and Cyprus registers.

Non-EU: includes Norway

For delivery: flag remains unknown

Table n. 3: World Oil Tanker fleet by flag (tonnage)

Built year / EU DH / EU Not DH / EU candidate* DH / EU candidate not DH / Non-EU DH / Non-EU not DH / Total / For delivery
1969 / 136,782 / 12,333 / 926,870 / 1,075,985
1970 / 29,990 / 181,778 / 211,768
1971 / 20,906 / 76,029 / 436,784 / 533,719
1972 / 49,717 / 58,599 / 732,103 / 840,419
1973 / 206,230 / 141,803 / 1,002,040 / 1,350,073
1974 / 738,526 / 31,102 / 675,260 / 38,395 / 3,363,798 / 4,847,081
1975 / 498,614 / 1,472,978 / 4,565,338 / 6,536,930
1976 / 7,952 / 2,328,783 / 1,426,394 / 19,469 / 7,541,872 / 11,324,470
1977 / 566,868 / 842,424 / 4,126,855 / 5,536,147
1978 / 148,711 / 1,103,122 / 2,853,774 / 4,105,607
1979 / 111,405 / 695,931 / 4,858,027 / 5,665,363
1980 / 736,502 / 1,801,488 / 11,520 / 3,465,562 / 6,015,072
1981 / 33,187 / 1,256,824 / 2,301,311 / 90,602 / 4,336,211 / 8,018,135
1982 / 56,311 / 511,848 / 33,934 / 891,448 / 51,290 / 3,586,801 / 5,131,632
1983 / 38,452 / 666,260 / 1,035,347 / 39,600 / 2,817,017 / 4,596,676
1984 / 486,355 / 28,750 / 660,580 / 135,960 / 2,101,366 / 3,413,011
1985 / 6,400 / 403,207 / 57,500 / 383,362 / 382,221 / 2,983,694 / 4,216,384
1986 / 124,162 / 788,737 / 86,110 / 763,170 / 564,442 / 3,923,481 / 6,250,102
1987 / 335,658 / 531,359 / 115,880 / 636,310 / 535,333 / 3,368,210 / 5,522,750
1988 / 83,955 / 1,214,788 / 102,770 / 378,771 / 917,518 / 4,373,339 / 7,071,141
1989 / 151,939 / 1,209,583 / 155,110 / 907,504 / 821,163 / 6,661,158 / 9,906,457
1990 / 90,395 / 485,208 / 93,600 / 442,981 / 805,102 / 6,056,536 / 7,973,822
1991 / 583,300 / 618,195 / 104,313 / 1,030,309 / 2,385,113 / 7,175,779 / 11,897,009
1992 / 630,075 / 1,096,306 / 426,965 / 522,113 / 5,026,243 / 8,415,808 / 16,117,510
1993 / 2,755,234 / 320,364 / 575,749 / 401,757 / 5,552,752 / 7,769,881 / 17,375,737
1994 / 1,727,914 / 369,149 / 171,697 / 40,296 / 3,045,344 / 4,948,046 / 10,302,446
1995 / 2,468,462 / 290,649 / 110,134 / 6,506 / 5,064,923 / 3,554,876 / 11,495,550
1996 / 2,492,731 / 465,363 / 8,783,826 / 41,090 / 11,783,010
1997 / 1,653,542 / 13,305 / 5,821,217 / 48,668 / 7,536,732
1998 / 2,666,802 / 874,261 / 9,608,429 / 18,227 / 13,167,719
1999 / 3,790,729 / 1,653,485 / 13,964,622 / 6,609 / 19,415,445
2000 / 5,557,400 / 7,071 / 1,372,807 / 5,500 / 13,845,589 / 37,267 / 20,825,634
2001 / 4,672,787 / 6,902 / 961,714 / 8,651,960 / 14,786 / 14,308,149
2002 / 5,608,995 / 1,983,647 / 17,207,334 / 1,939,500 / 26,739,476
2003 / 0 / 29,737,709
2004 / 0 / 18,659,372
2005 / 0 / 3,232,770
Total / 35,536,382 / 15,805,849 / 9,418,196 / 18,743,616 / 103,369,967 / 108,233,151 / 291,107,161 / 51,629,851

EU candidate: include Malta and Cyprus registers.

Non-EU: includes Norway

For delivery: flag remains unknown

Graph n. 4: World Oil Tanker fleet by flag (number of vessels)

EU candidate: include Malta and Cyprus registers.

Non-EU: includes Norway

For delivery: flag remains unknown

Table n. 4: World Oil Tanker fleet by flag (number of vessels)

Built year / EU DH / EU Not DH / EU candidate DH / EU candidate not DH / Non-EU DH / Non-EU not DH / Total / For delivery
1969 / 5 / 2 / 74 / 81
1970 / 1 / 24 / 25
1971 / 2 / 4 / 38 / 44
1972 / 2 / 4 / 37 / 43
1973 / 9 / 6 / 44 / 59
1974 / 7 / 1 / 13 / 2 / 68 / 91
1975 / 6 / 30 / 71 / 107
1976 / 1 / 16 / 28 / 2 / 74 / 121
1977 / 9 / 17 / 49 / 75
1978 / 3 / 17 / 49 / 69
1979 / 4 / 12 / 70 / 86
1980 / 13 / 27 / 1 / 82 / 123
1981 / 1 / 15 / 36 / 2 / 99 / 153
1982 / 3 / 13 / 1 / 21 / 2 / 86 / 126
1983 / 1 / 12 / 22 / 1 / 56 / 92
1984 / 14 / 1 / 12 / 2 / 47 / 76
1985 / 1 / 7 / 2 / 10 / 8 / 65 / 93
1986 / 5 / 17 / 3 / 11 / 7 / 54 / 97
1987 / 8 / 7 / 4 / 13 / 8 / 50 / 90
1988 / 1 / 10 / 3 / 7 / 14 / 61 / 96
1989 / 4 / 10 / 4 / 10 / 12 / 61 / 101
1990 / 3 / 6 / 2 / 7 / 11 / 61 / 90
1991 / 7 / 11 / 3 / 6 / 30 / 67 / 124
1992 / 11 / 6 / 6 / 5 / 57 / 64 / 149
1993 / 21 / 4 / 6 / 5 / 56 / 58 / 150
1994 / 19 / 4 / 3 / 1 / 40 / 43 / 110
1995 / 20 / 2 / 5 / 1 / 62 / 28 / 118
1996 / 27 / 8 / 95 / 6 / 136
1997 / 26 / 2 / 68 / 6 / 102
1998 / 38 / 13 / 116 / 3 / 170
1999 / 41 / 19 / 154 / 1 / 215
2000 / 41 / 1 / 19 / 1 / 107 / 4 / 173
2001 / 52 / 1 / 17 / 70 / 2 / 142
2002 / 75 / 32 / 137 / 10 / 254
2003 / 0 / 210
2004 / 0 / 193
2005 / 0 / 38
Total / 406 / 216 / 154 / 329 / 1064 / 1612 / 3781 / 441

EU candidate: include Malta and Cyprus registers.

Non-EU: includes Norway

For delivery: flag remains unknown

Comments (World Oil Tanker fleet by flag, Tables 3 and 4)

From the previous data (pages 10 to 13) it appears that the EU flagged fleet is relatively young: of the 1,192 vessels built in the period 1996-2202, 25% operate under EU flag, whereas the EU flag share is low amongst ships constructed in the 1970s and 1980s.
The candidate countries (in practice Cyprus and Malta) still have considerable numbers of old tankers constructed in particular in the periods 1974-1976 (72 tankers) and 1980-1984 (118 tankers).

Note

The numbers corresponding to the fleet under EEA, Cyprus and Malta flags as per November 2002 are given in Part IV. The Commission has no statistical data available on single hull / double hull tankers owned by companies (beneficial owners) established in the EU but operated under third country flags. It is known, however, that the numbers are substantial.

PART II

Comparison between the existing and the proposed phasing out schemes by number of vessels and by tonnage

For the purposes of the phasing out scheme, oil tanker categories as defined in the MARPOL convention are determined according to the tonnage, construction and age of the vessel.

Category 1: so-called "pre-MARPOL" single hull oil tankers, being crude oil tankers of 20,000 tons dead-weight and above and oil product carriers of 30,000 tons dead-weight and above having no segregated ballast tanks in protective locations (SBT/PL).

Category 2: corresponds to "MARPOL" single hull tankers, being of the same size as category 1, but which are equipped with SBT/PL.

Category 3: corresponds to single hull oil tankers below the size limits of categories 1 and 2 but above 5,000 tons dead weight.

2.1 World Oil Tanker fleet above 5,000 by MARPOL Category 1, 2 and 3

Single-hull tanker fleet 5,000 dwt. and above by category (in tonnes dwt.)

Dwt. / MARPOL Cat 1 / MARPOL Cat 2 / MARPOL Cat 3
200,000 dwt and above / 18.908.538 / 41% / 43.285.477 / 54% / 0 / -
120,000-199,999 dwt / 3.751.542 / 8% / 9.586.497 / 12% / 0 / -
60,000-119,999 dwt / 13.968.905 / 31% / 18.977.401 / 23% / 0 / -
20,000-59,999 dwt / 9.115.988 / 20% / 8.661.995 / 11% / 3.810.787 / 34%
5,000-19,999 dwt / 0 / - / 0 / 7.352.771 / 66%
Total / 45.744.973 / 100% / 100% / 11.635.558 / 100%

Single-hull tanker fleet 5,000 dwt and above by category (number of ships)

Number of vessels / MARPOL Cat 1 / MARPOL Cat 2 / MARPOL Cat 3
200,000 dwt and above / 59 / 12% / 160 / 24% / 0 / -
120,000-199,999 dwt / 27 / 5% / 66 / 10% / 0 / -
60,000-119,999 dwt / 171 / 34% / 225 / 34% / 0 / -
20,000-59,999 dwt / 241 / 48% / 210 / 32% / 138 / 15%
5.000-19.999 dwt / 0 / - / 0 / - / 803 / 85%
Total / 498 / 100% / 661 / 100% / 941 / 100%

Graph n. 5:

World Oil Tanker fleet above 5,000 by year of building - CATEGORY 1

Phase out pattern according to Regulation 417/2002 (MARPOL 13 G)

Table n. 5:

World Oil Tanker fleet above 5,000 by year of building - CATEGORY 1

Phase out pattern according to Regulation 417/2002 (MARPOL 13 G)

Category 1 - Sum of Dwt
Built / built / Built / phase-out
<1970 / 427,072
1970 / 30,322 / 1989
1971 / 71,589 / 1990
1972 / 500,456 / 1991
1973 / 707,190 / 1992
1974 / 3,157,560 / 1993
1975 / 4,839,439 / 1994
1976 / 10,758,384 / 1995
1977 / 4,242,095 / 1996
1978 / 3,423,120 / 1997
1979 / 4,953,014 / 1998
1980 / 5,495,317 / 1999
1981 / 7,139,415 / 2000
1982 / 2001
1983 / 2002
1984 / 2003 / 2,112,387
1985 / 2004 / 9,619,977
1986 / 2005 / 14,215,144
1987 / 2006 / 12,821,697
1988 / 2007 / 6,975,768

Graph n. 6:

World Oil Tanker fleet above 5,000 by year of building - CATEGORY 1

Phase out pattern according to new "Prestige" proposal

Table n. 6:

World Oil Tanker fleet above 5,000 by year of building - CATEGORY 1

Phase out pattern according to new "Prestige" proposal

Category 1 - Sum of Dwt
Built / built / Built / phase-out
<1970 / 427,072 / 1987
1970 / 30,322 / 1988
1971 / 71,589 / 1989
1972 / 500,456 / 1990
1973 / 707,190 / 1991
1974 / 3,157,560 / 1992
1975 / 4,839,439 / 1993
1976 / 10,758,384 / 1994
1977 / 4,242,095 / 1995
1978 / 3,423,120 / 1996
1979 / 4,953,014 / 1997
1980 / 5,495,317 / 1998
1981 / 7,139,415 / 1999
1982 / 2000
1983 / 2001
1984 / 2002
1985 / 2003 / 38,605,558
1986 / 2004 / 7,139,415

Comments (World Oil Tanker fleet above 5,000 by year of building - CATEGORY 1, Tables 5 and 6)

Category 1 would be the more immediately affected category for the accelerated phasing out scheme. The proposal of 20 December 2002 would have as a main consequence that the tonnage to be phased out in 2003 will sharply increase, from 2.1 Million dwt. to 38.6 Million dwt. This is the result of the re-introduction of the 23-year age limit.
As stated already on pages 6 to 8, the volume of new deliveries coming on to the market in 2003 according to the current order book totals around 29.7 Million dwt., not far away from the volume of tonnage to be phased out in 2003. Given the surplus capacity in the market during the main part of 2002, there is no reason to fear for a structural shortage of capacity in the short term.
In 2004, the tonnage to be phased out for the purposes of EU trades would be, under the new proposal (7.1 Million dwt.) slightly less than under the existing legislation (9.6 dwt).
The foregoing statistical data are based on a "worst case scenario" according to which the EU proposal would be simultaneously followed by the rest of the world (which is unlikely). As already stated in page 2, IMO may decide to follow the proposed acceleration of the phase out calendar, but even so, the new IMO measures can only enter into force with a certain delay (possibly 2005). That means that in practice, it is possible that a substantial part of the MARPOL Category I tankers affected by the EU measures may continue trading for some time in other areas.
Overall, the phase out measures - both the existing regulation and the new proposal - affect 498 vessels of 46 million dwt. (16% of the current tanker fleet). In comparison with Regulation 417/2002, the proposed acceleration would result in a 4 to 3 years (i.e. from 2007 to 2003/2004) reduction in the trading life of 264 tankers - if the measure is applied world-wide.

Graph n. 7:

World Oil Tanker fleet above 5,000 by year of building - CATEGORY 2

Phase out pattern according to Regulation 417/2002 (MARPOL 13 G)

Table n. 7:

World Oil Tanker fleet above 5,000 by year of building - CATEGORY 2

Phase out pattern according to Regulation 417/2002 (MARPOL 13 G)

Category 2- Sum of Dwt
Year / dwt built / Year / dwt phase-out
<1970 / 1996
1970 / 1997
1971 / 23,985 / 1998
1972 / 23,987 / 1999
1973 / 2000
1974 / 2001
1975 / 2002
1976 / 24,704 / 2003 / 47,972
1977 / 2004
1978 / 21,513 / 2005 / 24,704
1979 / 2006 / 21,513
1980 / 2007 / 104,379
1981 / 104,379 / 2008 / 4,010,153
1982 / 4,010,153 / 2009 / 4,152,158
1983 / 4,152,158 / 2010 / 2,945,274
1984 / 2,945,274 / 2011 / 3,267,579
1985 / 3,267,579 / 2012 / 5,242,699
1986 / 5,242,699 / 2013 / 4,483,765
1987 / 4,483,765 / 2014 / 5,567,968
1988 / 5,567,968 / 2015 / 50,643,206
1989 / 8,512,144
1990 / 6,730,437
1991 / 8,507,660
1992 / 9,750,236
1993 / 8,287,980
1994 / 5,133,495
1995 / 3,721,254

Graph n. 8:

World Oil Tanker fleet above 5,000 by year of building - CATEGORY 2

Phase out pattern according to new "Prestige" proposal

Table n. 8:

World Oil Tanker fleet above 5,000 by year of building - CATEGORY 2

Phase out pattern according to new "Prestige" proposal

Category 2- Sum of Dwt
Year / dwt built / Year / dwt phase-out
<1970 / 1996
1970 / 1997
1971 / 23,985 / 1998
1972 / 23,987 / 1999
1973 / 2000
1974 / 2001
1975 / 2002
1976 / 24,704 / 2003 / 47,972
1977 / 2004 / 24,704
1978 / 21,513 / 2005
1979 / 2006 / 21,513
1980 / 2007 / 104,379
1981 / 104,379 / 2008 / 4,010,153
1982 / 4,010,153 / 2009 / 4,152,158
1983 / 4,152,158 / 2010 / 72,150,491
1984 / 2,945,274
1985 / 3,267,579
1986 / 5,242,699
1987 / 4,483,765
1988 / 5,567,968
1989 / 8,512,144
1990 / 6,730,437
1991 / 8,507,660
1992 / 9,750,236
1993 / 8,287,980
1994 / 5,133,495
1995 / 3,721,254

Comments (World Oil Tanker fleet above 5,000 by year of building - CATEGORY 2, Tables 7 and 8)

The proposed acceleration would not be of immediate effect for the Category 2 tanker fleet. The main effect of the Commission's proposal is to shorten by five years (from 2015 to 2010) the final deadline for the phasing out of this category of tankers. It introduces therefore a sharp peak in 2010, where, according to the new proposal, more than 72 million dwt (25% of the current world oil tanker fleet tonnage) would have to be replaced. However, it should be stressed that this sharp peak will not occur to such extent if the measures are taken at EU level only. As stated before, the EU trade represents less than 30% of the world tanker trade and the peak of 72 million dwt. could thus be reduced accordingly.
The possible impact of shortening by five years the total phasing out period will also have to be examined against the prospects of renewal of the tanker fleet over the period 2003-2010. In practice the tankers operators will anticipate the withdrawal from the market of a large tonnage in 2010 by ordering new double hull tonnage well in advance. As mentioned before, the influx of new DH capacity in the period 2000-2002 was at the level of 30 million dwt. per annum. Hence, the market can normally absorb the replacement peak of 2010 without capacity constrains resulting thereof.

Graph n. 9:

World Oil Tanker fleet above 5,000 by year of building - CATEGORY 3

Phase out pattern according to Regulation 417/2002 (MARPOL 13 G)

Table n. 9:

World Oil Tanker fleet above 5,000 by year of building - CATEGORY 3

Phase out pattern according to Regulation 417/2002 (MARPOL 13 G)

Category 3- Sum of Dwt
Year / dwt built / Year / dwt phase-out
<1970 / 552,365 / 2000
1970 / 181,446 / 2001
1971 / 378,172 / 2002
1972 / 310,196 / 2003 / 1,940,648
1973 / 518,469 / 2004 / 1,158,853
1974 / 614,065 / 2005 / 742,811
1975 / 544,788 / 2006 / 648,199
1976 / 431,456 / 2007 / 1,088,634
1977 / 311,355 / 2008 / 1,124,569
1978 / 216,499 / 2009 / 542,859
1979 / 431,700 / 2010 / 442,627
1980 / 508,235 / 2011 / 533,295
1981 / 580,399 / 2012 / 444,158
1982 / 1,124,569 / 2013 / 263,583
1983 / 542,859 / 2014 / 438,930
1984 / 442,627 / 2015 / 1,794,392
1985 / 533,295
1986 / 444,158
1987 / 263,583
1988 / 438,930
1989 / 266,101
1990 / 254,288
1991 / 316,623
1992 / 283,991
1993 / 204,022
1994 / 223,996
1995 / 130,777
1996 / 41,090
1997 / 48,668
1998 / 18,227
1999 / 6,609

Graph n. 10:

World Oil Tanker fleet above 5,000 by year of building - CATEGORY 3

Phase out pattern according to new "Prestige" proposal

Table n. 10:

World Oil Tanker fleet above 5,000 by year of building - CATEGORY 3

Phase out pattern according to new "Prestige" proposal

Category 3- Sum of Dwt
Year / dwt built / Year / dwt phase-out
<1970 / 552,365 / 2001
1970 / 181,446 / 2002
1971 / 378,172 / 2003 / 3,099,501
1972 / 310,196 / 2004 / 431,456
1973 / 518,469 / 2005 / 311,355
1974 / 614,065 / 2006 / 648,199
1975 / 544,788 / 2007 / 1,088,634
1976 / 431,456 / 2008 / 1,124,569
1977 / 311,355 / 2009 / 542,859
1978 / 216,499 / 2010 / 442,627
1979 / 431,700 / 2011 / 533,295
1980 / 508,235 / 2012 / 462,932
1981 / 580,399 / 2013 / 244,809
1982 / 1,124,569 / 2014 / 438,930
1983 / 542,859 / 2015 / 1,794,392
1984 / 442,627
1985 / 533,295
1986 / 444,158
1987 / 263,583
1988 / 438,930
1989 / 266,101
1990 / 254,288
1991 / 316,623
1992 / 283,991
1993 / 204,022
1994 / 223,996
1995 / 130,777
1996 / 41,090
1997 / 48,668
1998 / 18,227
1999 / 6,609

Comments (World Oil Tanker fleet above 5,000 by year of building - CATEGORY 3, Tables 7 and 8)

The effect of the proposed acceleration of the phase out dates for Category 3 tankers is limited to the period 2003-2006. All other deadlines (i.e. the phasing out calendar applying to ships built after 1977) would remain unchanged.
The proposal basically consists of advancing by one year (from 2004 to 2003) the deadline applicable to tankers built in 1975 or earlier (maximum 28 years of commercial life for the purposes of EU trades).

Year / DH Regulation 18-02-2002 / Proposal of 20-12-2002
2003 / 1,940,648 dwt. / 3,099,501 dwt.
2004 / 1,158,853 dwt. / 431,456 dwt.
2006 / 742,811 dwt. / 311,355 dwt.
Total / 3,842,312 dwt. / 3,842,312 dwt.

The proposal would lead to a phase-out peak of 3.1 million dwt. in 2003 (if applied at global level), compared to a phase-out tonnage of 1.9 million dwt. under the existing scheme. The increase by 1.2 million dwt. is, however, small compared to the tonal tonnage available in Category 3 (11.6 million dwt), and should therefore not lead to any noticeable shortage of capacity.

PART III

Existing world-fleet of MARPOL Category 3 Tankers between 600 and 5,000 dwt. as of November 2002

Impact of the banning for transporting heavy grades of oil on single hull tankers

Introductory comment

MARPOL Regulation 13F applies to tankers of 600 tonnes dead-weight and above ordered from 1993 and requires vessels of 5,000 tonnes dead-weight and above to be double hulled as of July 1996. There is no statutory requirement for ships below 5,000 tonnes dead-weight to have double hulls. However, in some cases the owners have opted on their own initiative for the double hull design. Since 2001, new buildings below 5,000 dwt. are even predominantly of the double hull design. As a consequence, the double hull tonnage available in this market segment is very limited but increasing.
In its proposal of 20 December 2002, the Commission proposed that the double hull requirement should apply (immediately) to all tankers carrying heavy fuel and other heavy grades of oil, including the small tankers between 600 and 4,999 dwt. However, it is not known how many tankers within this size range (600-4,999 dwt.) are dedicated to the transport of heavy oils. The proposed rule would particularly affect the sector of the bunker services[4] in EU / EEA ports.
In this Part III, a first preliminary assessment is being made of the availability of double hull tonnage in the segment of 600-4,999 dwt. Ships below 5,000 dwt. not active in heavy oil trades are not affected by the Commission's proposal.

Table n. 11: