<p>11 June 2007 Our Ref.: FL-40229/1300001</p><p>Minutes</p><p>Human Element in Shipping Committee</p><p>Meeting # 3</p><p>Tuesday 12th of June 2007 (12:30 – 15:30)</p><p>Radisson SAS Hotel Oslo, Norway</p><p>Minutes from HEiSC # 3 (Approved by the Committee) Page 1 of 9 Held in Oslo, Norway on the 112h of June 2007. Version 2</p><p>Our Ref.: FL-40229/1750000 Approved by: Howard. N. Snaith ATTENDEES: Broström Tankers SAS Mr. Patrick Decavele (Deputy Chairman Interorient Navigation Co. Ltd Capt. Steve Hardy ABS Ms. Denise McCafferty V Ships Capt. Bob Bishop OSG Capt. Bob Johnston OSG Capt. Eduard Tkalcic Warsash Maritime Centre Prof. Mike Barnett DNV Ms. Helen Jones* INTERCARGO Mr. Roger Holt Teekay Shipping (Canada) Ltd. Capt. Graham Westgarth Columbia Shipmanagement Ms. Suzanne Meyer Valles Steamship Co. Ltd Capt. Oscar Pinto** Newfront Shipping Mr. Konstantinos Livanos Eurasia Int. (Europe) Ltd Mr. Arwind Sharma INTERTANKO Capt. Howard Snaith INTERTANKO Mr. Fredrik Larsson * Substitute for Mr. Goodwin **Substitute for Mr. David Koo</p><p>OBSERVERS:</p><p>Warsash Maritime Centre Ms. Claire Pekcan ABS Dr. Christine Tomlinson</p><p>APOLOGIES:</p><p>AET Mr. Amir Azizan Valles Steamship Co. Ltd Mr. David Koo DNV Mr. Steve Goodwin Interorient Navigation Co. Ltd. Capt. Steve Hardy</p><p>Minutes from HEiSC # 3 (Approved by the Committee) Page 2 of 9 Held in Oslo, Norway on the 112h of June 2007. Version 2</p><p>Our Ref.: FL-40229/1750000 Approved by: Howard. N. Snaith COMMITTEE SECRETARIES OPENING REMARKS</p><p>The committee secretary explained that the committee Chairman, Mr. Amir Azizan, sent his apologies, but was unable to attend to chair the meeting on this occasion due to unforeseen circumstances. Further the secretary announced that with prior agreement, Mr. Patrick Decavele would be acting as Chairman of the committee at this meeting, and said that we were very grateful to him for actively taking this role. </p><p>CHAIRMAN’S OPENING REMARKS</p><p>1. ANTI-TRUST/COMPETITION LAW COMPLIANCE</p><p>The Chairman brought to the attention of all those present the INTERTANKO’s Anti- Trust/Competition law Compliance Statement as follows:</p><p>INTERTANKO’s policy is to be firmly committed to maintaining a fair and competitive environment in the world tanker trade, and to adhering to all applicable laws which regulate INTERTANKO’s and its members’ activities in these markets. These laws include the anti-trust/competition laws which the United States, the European Union and many nations of the world have adopted to preserve the free enterprise system, promote competition and Antitrust/Competition Law Guidelines.</p><p>2. MINUTES FROM THE LAST MEETING</p><p>The minutes from HEiSC # 2 was approved by the Committee via correspondence the 1st of May and has subsequently been circulated in the INTERTANKO weekly news, in the electronic Human Element Bulletin and placed on the member’s area of the web site. The meeting endorsed and took note of the minutes from HEiSC # 2.</p><p>3. AMENDED TERMS OF REFERENCE</p><p>The committee, at its first inaugural meeting reviewed its Terms of References as given by the INTERTANKO Council. After the review during that meeting, the Committee considered that a few changes should be done and agreed to invite the Council to endorse the recommended changes. Subsequently, the INTERTANKO council at its meeting in Houston February 2007 endorsed the recommended changes.</p><p>4. STATUS REVIEW ON ACTION POINTS ARISING FROM THE PREVIOUS MEETINGS</p><p>The committee took note of the action points, and that they were either completed or that work was ongoing. The committee agreed to discuss the action points in each appropriate agenda item.</p><p>Minutes from HEiSC # 3 (Approved by the Committee) Page 3 of 9 Held in Oslo, Norway on the 112h of June 2007. Version 2</p><p>Our Ref.: FL-40229/1750000 Approved by: Howard. N. Snaith 5. LANDSCAPE SURVEY</p><p>Dr. Tomlinson who attended the meeting as an observer from ABS gave the participants a presentation on the present status of the landscape survey, which has been refined, restructured and converted into a Microsoft Access 97 database. Dr. Tomlinson and Ms.McCafferty have undertaken this job on behalf of HEiSC, after volunteering to undertake this task at the last meeting. Dr. Tomlinson gave a brief background of the project and updated the committee on the landscape survey status. To date, over 200 entries from 24 different organisations have been entered into 5 categories. Textbooks and commercial services have purposely been excluded. The committee listened with great interest to the presentation and thanked Dr. Tomlinson and Ms.McCafferty for their vast effort to create the database.</p><p>The committee raised a number of issues pertaining to the database, such as how INTERTANKO would deal with the maintenance and update of the database to ensure it remained a living document. A further question raised was how INTERTANKO could control entries to ensure they are appropriate and adequate. </p><p>The committee agreed that the secretariat should be responsible for updates and maintenance, and further felt that the question on how to ensure the adequacy of entries should be handled by the secretariat. The committee decided that the database should be kept on the INTERTANKO website in a non-downloadable version and be available as a read only database for INTERTANKO members.</p><p>Action Point 1: It was agreed that the database would be would be run for a trail period in this manner initially with an open request for feedback from users that would be reviewed and evaluated by the committee at a later meeting.</p><p>Action Point 2: The committee agreed to transfer the landscape survey database to the INTERTANKO web site accordingly. </p><p>6. CADET BERTH SURVEY</p><p>At its first meeting, HEiSC decided to conduct a survey to determine the status and situation regarding cadet berth availability among the INTERTANKO member’s vessels as a result of general feedback indicating that not only were there insufficient cadets available for the future but that there were also insufficient berths available on new buildings to cabin them. Accordingly the committee conducted a survey to establish the facts within our membership.</p><p>The Committee discussed many aspects and how it might positively influence the current manning shortage, which is expected to become more severe as the newbuilding programme continues over the next few years. It was noted that INTERTANKO's Council agreed at its meeting in November 2006 that: </p><p>"In an effort to increase the number of qualified competent officers at sea and to safeguard the tanker industry of the future, INTERTANKO members agreed to consider that, as part of a planned programme for officer training, they will commit to enlisting Apprentice Officers (Cadets), for each vessel operated, where suitable</p><p>Minutes from HEiSC # 3 (Approved by the Committee) Page 4 of 9 Held in Oslo, Norway on the 112h of June 2007. Version 2</p><p>Our Ref.: FL-40229/1750000 Approved by: Howard. N. Snaith certified cabin space exists onboard the vessel to accommodate them, and where it is possible to acquire young capable Cadet Officers of a suitably qualified nature. </p><p>In addition, recognising the trend in today's practice of restrictions in accommodation by shipyards, INTERTANKO members further agree to consider that new buildings should include suitable certified cabin space for cadets as part of any new building specification. Further that INTERTANKO will, (in parallel) endeavour to ensure that the Tripartite Forum (Owners, Shipbuilders and Class) will include cadet berth availability in their work programme with the aim that classification societies make cadet berths a mandatory requirement in standard ship design."</p><p>The committee reviewed the final report which indicated that on average, each vessel that replied the survey accommodated 1 cadet, 12 months/year. Given the relative high number of vessels with 2 cadet berths (62 %) and that 86 % of the participating companies (42) did not have difficulties to find cadets; the conclusion is that it is sufficient space available to increase the number of cadets serving onboard.</p><p>The committee noted that the findings of the report contradicted the initial concern which was the apparent lack of cadet berths. The committee discussed what options were available to encourage none INTERTANKO members to accommodate and train 2 cadets per ship, on a continual basis. One suggestion was to seek tax incentives from administrations whilst another suggestion was to impose monetary penalties for those companies that do not train cadets. </p><p>Action Point 3: The committee agreed that the Executive Committee should be consulted regarding these and possibly other approaches that could be undertaken by INTERTANKO to encourage onboard cadet training onboard non INTERTANKO members vessels.</p><p>Action Point 4: Although the report reveals the overall situation it was further felt by the committee that a geographical, overview would be beneficial to reveal any regional differences that may exist and it was therefore agreed that the secretariat should extract such data for the committee to discuss at its next meeting.</p><p>6.1 CADET BERTH CLAUSE IN SHIPMANAGEMENT CONTRACTS </p><p>With regards to the possibility to include cadet berths in the contracts for ship management, it was felt by the committee that this was an important step to ensure sufficient supply of future officers. However, after its consideration of the result from the cadet berth survey the committee agreed that the main issue is how to encourage companies to fill up the cadet berth space and commit to train cadets, rather then lack of berths. </p><p>6.2 POSSIBLE CADET BERTH TONNAGE EXCEMPTION</p><p>The committee discussed various ideas on how to encourage companies to take onboard more cadets. Among the various ideas was to impose a “penalty fee” for those</p><p>Minutes from HEiSC # 3 (Approved by the Committee) Page 5 of 9 Held in Oslo, Norway on the 112h of June 2007. Version 2</p><p>Our Ref.: FL-40229/1750000 Approved by: Howard. N. Snaith who do not train cadets, and various sorts of tonnage exemptions. The committee could not come up to any conclusion on how to best address this matter and it was therefore agreed they needed further guidance and advise from ExCom. </p><p>7. ILO 180/OPERATIONAL MANNING WG The committee noted the report provided in the agenda notes and that the ILO 180 working had been inaugurated and consisted of:</p><p> Capt Raja Rajalingam - Chairman  Michael Wilson - Laurin Maritime  Ashley Cooper Scorpio Ship Management  Jean Nectar - Brostrom  Konstantinos Livanos - New Front Shipping  Eduard Tkalcic - OSG</p><p>The committee also took note of the concerns raised by the vetting committee regarding being too specific with manning guidance and that the vetting committee had asked HEiSC to consider this. Accordingly the committee took note and reviewed this further and also took note of the feedback provided by the Executive Committee pertaining to this issue that their opinion was that INTERTANKO should not produce any guidelines which could be seen as over prescriptive or too strict. Consequently the committee agreed to produce the guidance document which should include guidance on ILO180 compliance with regards to work and rest aspects and guidelines regarding operational manning in a general aspect and aim to complete this work by the end of 2007. </p><p>Action Point 5: The committee noted that ILO 180 is part of the Maritime Labor Convention (MLC) and it was agreed that although the secretariat would estimate the amount of work required to produce a guidance document for the MLC the working group should initially focus on producing the ILO 180 guidance document as outlined.</p><p>8. TOTS</p><p>The committee took note of the work undertaken to date and completion of stage 1 of the TOTS system. The committee agreed that stage 2 should be completed by the end of 2007 and that TOTS should ensure that familiarisation with company operating systems was built into the system. In addition the working group Chairman (Captain Rajalingham) and the vetting committee chairman (Capt Bob Bishop) volunteered one resource each (additional working group member) to assist with the compilation of the training books and simulator courses.</p><p>Action Point 6: It was agreed to proceed with Stage 2 of TOTS to complete sections 3, 4 and 5 by the end of 2007 and ensure that familiarisation with company operating systems was built into the system.</p><p>Minutes from HEiSC # 3 (Approved by the Committee) Page 6 of 9 Held in Oslo, Norway on the 112h of June 2007. Version 2</p><p>Our Ref.: FL-40229/1750000 Approved by: Howard. N. Snaith 9. OFFICER RETENTION SURVEY</p><p>HEiSC # 2 agreed that the secretariat should undertake a survey among the INTERTANKO membership to find out the 5 most common reasons why their officers leave their company. The secretariat, who had received replies from 24 companies informed HEiSC # 3 of the results.</p><p>The committee felt it would be useful to conduct a new survey, and re-focus its targeted questions because the initial results although low in number, does not reveal if the officers that are leaving are “leaving the shipping industry” or simply “leaving a sea going career” to move ashore within the industry. In addition the committee agreed that it would be beneficial to stipulate between deck officers and engineering officers to establish if the reasons for leaving were different for each department. </p><p>Professor Mike Barnett offered assistance to produce a new questionnaire, which then should be circulated within the membership. The committee agreed accordingly.</p><p>Action Point 7: It was agreed, to conduct a new Officer Retention Survey and re- focus its questions to find out if officers who abandon their seagoing career leave the shipping industry or continue within shipping ashore. In addition the committee agreed that it would be beneficial to stipulate between deck officers and engineering officers to establish if the reasons for leaving were different for each department.</p><p>10. IMO HUMAN ELEMENT WG</p><p>Due to shortage of time this agenda item was not discussed at HEiSC # 3 and was referred for the Committee to review at a later meeting.</p><p>11. COMPLIANCE</p><p>The committee took note of the submission and praised the initiative.</p><p>12. ANALYSING THE BENEFITS OF ONBOARD COMPUTER BASED TRAINING (CBT)</p><p>The secretariat informed HEiSC # 3 of the INTERTANKO’s September 2006 meeting of the IT Committee in Singapore. The IT Committee made reference to the members’ replies to the IT Questionnaire where it was noted that members considered the following IT issues as the most relevant to their operations:</p><p> a) IT training for crew, b) CBT training, and c) On-board distance learning software</p><p>Action Point 8: The committee took note and agreed that the easiest way to get seafarers' attention is when they are at sea and not when they are ashore during their leave periods. It was agreed that this would be brought to the attention of the IT Committee.</p><p>Minutes from HEiSC # 3 (Approved by the Committee) Page 7 of 9 Held in Oslo, Norway on the 112h of June 2007. Version 2</p><p>Our Ref.: FL-40229/1750000 Approved by: Howard. N. Snaith 13. CAREER AT SEA INITIATIVES</p><p>HEiSC # 3 had been asked by the Chairman of INTERTANKO, Mr. Nicholas Fistes to consider what initiatives we can establish that will attract (young) people to a seagoing career. HEiSC was therefore requested to expend thought and effort to address this request. </p><p>The committee raised the question if INTERTANKO undertakes enough work in developing countries? </p><p>Action Point 9: The committee agreed that INTERTANKO should emphasise attracting the interests from young people by informing them of the potential careers and the bright future a job in shipping will give them. It was also mentioned that it is important to meet people’s expectations in order to keep a high retention rate. Suzanne Meyer informed that she is a member of the International Seafarer Employers Association where these matters are discussed and it was agreed that the secretariat would discuss this further to explore additional possibilities and revert at the next meeting.</p><p>14. COMMITTEE WORK ITEMS VERIFICATION WITH ToR.</p><p>Unfortunately due to time constraints this agenda item was not discussed. </p><p>15. ADMINISTRATIVE MATTER</p><p>Reciprocal attendance request HEiSC and MCA</p><p>HEiSC # 3 was informed by the secretariat that by way of our discussions with the MCA regarding the landscape survey, we were approached with a request from the MCA to send a member of HEiSC to represent INTERTANKO at the MCA Human Element meetings Human Element Assessment Group (HEAG). Whilst warmly welcoming the closer cooperation INTERTANKO felt that it would be more appropriate for one of the committee secretaries to represent HEiSC at these meetings in the UK. Consequently, the outcome of further discussions with the MCA has resulted in a request from the MCA to participate in the HEiSC in return for INTERTANKO to participate in HEAG. The secretariat advised the MCA that the request will be raised at our next executive session.</p><p>Action Point 10: As the MCA were not a member of INTERTANKO the committee agreed that guidance should be sought from the Executive Committee accordingly.</p><p>In addition the committee took note that Mr. Goodwin from DNV had advised the secretariat that he will change position within DNV and therefore will not be available to contribute to participate as a committee member. The committee agreed therefore to the appointment of Ms. Helen Jones from DNV as the new member to the committee. </p><p>16. ANY OTHER BUSINESS</p><p>Action Point 11: HEiSC had been requested by one of INTERTANKO´s members to discuss the recent case of whistle blowing within US onboard the Marshall Island flagged MT Captain X Kyriakou and a suggestion on how to address this. The</p><p>Minutes from HEiSC # 3 (Approved by the Committee) Page 8 of 9 Held in Oslo, Norway on the 112h of June 2007. Version 2</p><p>Our Ref.: FL-40229/1750000 Approved by: Howard. N. Snaith committee agreed that this was not an issue for the HEISC and should be referred to the Executive Committee.</p><p>17. DATE AND PLACE OF NEXT MEETING</p><p>It was suggested that the next HEiSC should meet 18th of September in London, or the 2nd of October in Paris. The secretariat will discuss suggested dates with the HEiSC Chairman, Mr. Amir Azizan and circulate a final suggestion per email to the members.</p><p>Minutes from HEiSC # 3 (Approved by the Committee) Page 9 of 9 Held in Oslo, Norway on the 112h of June 2007. Version 2</p><p>Our Ref.: FL-40229/1750000 Approved by: Howard. N. Snaith</p>