Executive Committee meeting held virtually 9 October 2020 11:00 to - - PowerPoint PPT Presentation

Executive Committee meeting

held virtually

9 October 2020

11:00 to 13:00 London time

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Anti-trust and Competition Law Compliance Statement

INTERCARGO is firmly committed to maintaining a fair and competitive environment in the world shipping trades, and to adhering to all applicable laws which regulate shipowners and their representative bodies in these markets. These laws include the antitrust laws, which the United States of America, the European Union and many nations of the world have adopted to preserve the free enterprise system, promote competition and protect the public from monopolistic and other restrictive trade practices. All meetings of INTERCARGO will be conducted in compliance with such laws and regulations. As part of those Guidelines, neither INTERCARGO nor its members shall engage in any discussion on or agree upon: fixing of terms, prices, rates; matters relating to particular customers or suppliers; boycott or blacklist particular customers or suppliers; divide markets or customers; otherwise seek to distort competition. All advice to members on, inter alia, chartering terms including information on model clauses shall be non- binding and for information only.

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➢ with Mare Forum technical support ➢ participation guidelines

Executive Committee meeting

held virtually

9 October 2020

11:00 to 13:00 London time

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MINUTES OF PREVIOUS MEETING (circulated electronically – draft version dated 14.11.2019) Welcome by the Chairman ExCom to approve

DISCUSSION DECISION / ENDORSEMENT

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The discussions held at the Technical Committee meeting the preceding day and relevant recommendations will be presented by the Technical Committee Chairman for approval, where relevant. The Executive Committee will also Review the INTERCARGO Work Programme / 2020 relevant survey ExCom to approve

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CURRENT WORK ITEMS

Executive Committee meeting 9 October 2020

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• Regular industry COVID-19 Co-ordination and Task Force meetings since April
• Updates on INTERCARGO’s website
• INTERCARGO’s relevant Media Releases:
• “World Maritime Day 2020: Sustainable shipping for a

sustainable planet” (Sep. 24)

• “Crew change: Drastic measures needed now” (July 27)
• Day of the Seafarer: “Slow Response from Governments

Pushing Seafarers to their Limits” (June 24)

• Urgent video message: “Crew Change – time is running
• ut” (June 12)
• “Crew Change for ‘Key Workers’ at Sea Must be Top of

the Industry’s Agenda” (April 28)

• “Coronavirus poses major challenges for seafarers on

merchant ships from increasing restrictions imposed by port states” (March 17)

• As well as interventions at IMO and other international fora….

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• Resistance from nations’ health and immigration authorities, airlines and

even some governments themselves

• IMO and relevant initiatives; International Transport Workers Federation (ITF),

International Air Transport Association (IATA),….

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➢ 0828-EX-F- On a dry bulk sector quality self-assessment scheme (internal update) consolidating the DRY-SAS and DBMS schemes Reference: supporting slides

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GHG Emissions

Executive Committee meeting 9 October 2020

GHG short term measures ➢ IMO Marine Environment Protection Committee: MEPC 75 (16-20 November 2020) ➢ 7th Session of IMO’ Intersessional Working Group on the Reduction of GHG Emissions - ISWG-GHG 7 (19-23 October 2020) ➢ Informal discussion session on short-term measures for reduction of GHG emissions from ships (5-6 October 2020):

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GHG Emissions

Executive Committee meeting 9 October 2020

Current framework of discussions at IMO :

• two approaches: technical and operational
• technical approach : Energy Efficiency Existing Ship Index (EEXI)
• perational approach: Carbon Intensity Indicators (CII); a carbon intensity

rating mechanism; strengthening

• f

the Ship Energy Efficiency Management Plan (SEEMP)

• Proposed compromise solutions include potential combinations e.g.:
• Option 1: mandate use of CIIs upfront, but first collect data during 3 years based on which to determine (in 2026)

the required values ships would need to comply with.

• Option 2: mandate from the beginning both the use of CIIs and the required values ships would need to comply
• with. Ships not being compliant with the required value will have to apply corrective actions in 2024.
• Option 3: like Option 2 but no measures to be taken for the first 3 years on ships not meeting the required CII

values they would need to comply with.

GHG short term measures Reference: ExCom notes_Agenda Item 4

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GHG Emissions

Regional initiatives: EU ETS

Executive Committee meeting 9 October 2020 ➢ risks causing trade retaliation, an increase in emissions and the decline of European ports. ➢ basically a money collection mechanism, fundamentally disconnected from the work at IMO, and risks undermining a global GHG solution ➢ regional regulations → ineffective, as they create distortions and multi-tier markets, or even trade tensions The IMO to ensure a level playing field globally

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GHG Emissions

4th GHG study

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2008-2018

• international shipping
• share of global CO2 emissions practically constant at 2%
• significant improvements in carbon intensity: 21%-29% better than in 2008
• bulk carriers: EEOI reduction by 37.8% from 2008 to 2018 for voyage based

(40.2% for vessel based calcs)

• a 40% increase in seaborne trade
• total CO2 emissions from shipping fell by 10%.

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GHG Emissions

4th GHG study

Executive Committee meeting 9 October 2020

for the period up to 2050 ➢ total shipping emissions increasing from about 90% to 130% of reference year 2008 levels for a range of plausible long-term socio-economic scenarios ➢ the share of international shipping expected to be constant ➢ To be appreciated against the growth our world will experience in global population, GDP, and maritime transport work.

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GHG Emissions

R&D proposal / medium-longer term measures and challenges

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The industry needs fuel/energy suppliers, engine manufacturers, shipbuilders and charterers to achieve IMO’s objectives

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• Bulk carrier Casualties / incidents
• Cybersecurity & Piracy
• Ship recycling
• Human Element

Reference: ExCom notes_Agenda Item 5

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➢ 2018 annual surplus: GBP 520,596 ➢ 2017 annual surplus: GBP 170,746 ➢ 2016 annual surplus: GBP 130,590

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Intercargo Period to Period to Income & Expenditure 31/08/2020 31/08/2019 £ £ Income 1,156,524.55 1,126,527.93 Membership Fees received 1,149,703.55 1,120,602.93

further increase in annual Membership income

Publications / Publications Advertising 6,621.00 5,925.00 Other income 200.00 Staff Costs (326,637.32) (292,891.71) Gross salaries (261,814.14) (235,482.12) Employer's N.I. contributions (30,970.60) (25,145.12) Staff pension costs (35,211.17) (20,131.92) Travel Insurances 4,734.35 (1,113.28) Other staff costs (3,375.76) (11,019.27) Premises Costs (46,015.05) (32,436.07)

higher rental and related costs in new independent office

(32,036.67) Rent (35,325.00) Rates (7,602.24) Insurance (668.57) Cleaning (530.00) Repairs & maintenance (84.03) Service charge (Intertanko) (24.00) Office refurbishment (1,062.00) Office furniture (209.96) Sundry premises costs (509.25) (399.40) Meeting/Travel (16,251.73) (49,195.27)

decrease in costs due to (COVID) cancellation of travels & events

Travelling expenses - Fares (9,055.74) (10,285.04) Travelling expenses - Hotels (2,208.52) (29,636.87) Travelling expenses - Subsidence (434.37) (1,130.40) Entertaining (114.06) (3,868.21) Meeting expenses (4,439.04) (4,274.75)

…

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Office costs (38,164.04) (10,701.88) Office costs (160.00) Printing, postage and stationery (565.39) (801.90) Postage/Courier (254.80) Publications purchases (39.40) (65.05) Publications for resale

• Publications not for resale

(772.53) (420.00) Benchmarking report (8,993.10) (6,134.85)

higher publication costs

Other reports

• Photocopier

(834.05) Promotion (125.00) (125.00) Marketing/PR (11,742.70)

marketing expenses increase (video etc)

Telephone (659.00) Telephone running costs (4,147.59)

higher new independent office runnig costs

Computer running costs (4,737.58)

...

Computer software (656.16)

…

Computer hardware (51.98) (170.92) Website hosting

• Website maintenance

(835.18) Subscriptions (3,589.58) (2,984.16) Professional Fees And Costs (27,358.13) (11,221.51) Legal fees (300.00) Other professional fees (8.38) Consultancy fees (3,900.00) (7,000.00) Project costs

• (313.31)

Projects - Dry SAS (16,151.84)

DRY-SAS project costs

2019/2018 Accountancy costs (6,984.91) (3,600.00) Sundry professional costs (13.00) (13.00) Finance Costs (3,464.95) 3,629.09 Bank charges (712.95) (783.17) Credit card charges (245.00) (169.33) Bad and doubtful debts (7.00) 4,256.00 Profit/loss on foreign currency

• 12.18

Sundry expenses

• 313.41

Charitable donations (2,500.00)

Donation to Mission to Seafarers (COVID)

Depreciation (1,906.00) (1,397.65) Office equipment depreciation (448.00) Computer depreciation (1,458.00) Investment Income 15,202.06 10,229.69

higher investment income

Bank interest received 15,202.06 10,229.69 Tax Corporation Tax Charge Surplus for period 711,929.39 742,542.62 a surplus decrease by 4.1%

Intercargo Period to Period to Income & Expenditure 31/08/2020 31/08/2019 £ £

…

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Intercargo Period to Potential to Income & Expenditure 31/08/2020 31/12/2020 £ £ Income 1,156,524.55 1,160,000.00

assuming no extra income b

Membership Fees received 1,149,703.55 Publications / Publications Advertising 6,621.00 Other income 200.00 Staff Costs (326,637.32) (490,000.00) Gross salaries (261,814.14) Employer's N.I. contributions (30,970.60) Staff pension costs (35,211.17) Travel Insurances 4,734.35 Other staff costs (3,375.76) Premises Costs (46,015.05) (65,000.00) Rent (35,325.00) Rates (7,602.24) Insurance (668.57) Cleaning (530.00) Repairs & maintenance (84.03) Service charge (Intertanko) (24.00) Office refurbishment (1,062.00) Office furniture (209.96) Sundry premises costs (509.25) Meeting/Travel (16,251.73) (20,000.00)

costs kept at low levels

Travelling expenses - Fares (9,055.74) Travelling expenses - Hotels (2,208.52) Travelling expenses - Subsidence (434.37) Entertaining (114.06) Meeting expenses (4,439.04) Office costs (38,164.04) (45,000.00) Office costs (160.00) Printing, postage and stationery (565.39) Postage/Courier (254.80)

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0.15% ! 0.01% !

! since 01.06.2020

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Partial investment of funds (up to £1.5m) as on option

Bank deposits

• 95 day notice account – 0.85% for all balances down to 0.15% from 1st June
• Special interest account/Instant access reserve account – down to 0.01% from 1st June
• 6 month fixed term deposit – an indicative rate of 0.01%
• 12 month fixed term deposit – an indicative rate of 0.01%

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Partial investment of funds as on option

Investment funds

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Partial investment of funds as on option

Conservative investment fund porfolio

• Target return: Bank of

England Base Rate +2% (not guaranteed); should rather aim for 3yr placement basis past figures analysis

• capital downside exists

subject to volatility

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33 Executive Committee meeting 9 October 2020 Proposed revisions from 1 January 2021

Revise section 4 as per below

4 MEETINGS The following provisions apply to the following categories of meetings: - Directors’ Meetings; Annual General Meeting. “AGM”; Extraordinary General Meeting. “EGM”; Executive Committee and/or Technical Committee Meetings. The meeting need not be held at any particular place. The meeting may be held without any number of those participating in the meeting being together, at the same place. If it is anticipated that the participants in the meeting will not be in the same place, the Directors will determine how they should communicate with each other during the meeting. If all the participants in a meeting are not in the same place, they may decide that the meeting is to be treated as taking place wherever any of them is. The meeting may be held, and any votes may be permitted to be cast, by electronic means, or any other means including but not limited to “a show of hands.” In determining attendance at an AGM and/or EGM, it is immaterial whether any two or more members attending it are in the same place as each other. Two or more persons who are not in the same place as each other attend an AGM and /or EGM if their circumstances are such that if they have (or were to have) rights to speak and vote at that meeting, they are (or would be) able to exercise them. 4.1 Minutes of meetings The Secretary General shall cause minutes to be made of all Annual General Meetings, Extraordinary General Meetings and Executive Committee Meetings.

Revise section 10.1 as per below

10 MANAGEMENT COMMITTEE 10.1 The Management Committee comprises the Chairman, the Vice Chairman, the Technical Committee Chairmen in a consultative role, and the Secretary General with authority to the voting members to appoint additional non-voting advisor(s)/consultant(s) in an honorary capacity or otherwise.

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Posted on our Website: https://www.intercargo.org/

https://www.intercargo.org/annual-review-2019-2020/

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(VIDEO) Dry Bulk Shipping: Sustainably serving the world’s essential needs

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>3,000 followers

x 6 times in last 3 years

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Date / Place of next ExCom

• March 2021 – exact date TBC
• Singapore?
• With optional virtual participation?

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COLLECTIVE EXCOM PHOTO “Webinar” setting thanks to high participation!

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END

Executive Committee meeting 9 October 2020